A study by real estate brokerage Redfin found that U.S. homeowners are remaining in their existing homes for longer than they did 20 years ago. On average, homeowners were found to be staying in their homes for almost 12 years, up from an average of six and a half years two decades ago.
This trend is leading to a shortage of home inventory, with the prospect of higher mortgage rates dissuading homeowners from parting ways with their existing homes. According to the National Association of Realtors, existing home sales hit a 30-year low last year, a testament to this “lock-in” effect where homeowners refuse to let go of their cheaper mortgage rates.
Of those born between 1946 and 1964, 40% have remained in their homes for at least 20 years, Redfin found. A further 16% have been in their current homes for 10 to 19 years. According to the study, this appears to be a generational trend rather than a broader market one, with only around 7% of millennials staying in their homes for 10 years or longer.