What is the Average Length of Homeownership?

Are you curious about how long homeowners typically stay in their houses? Continue reading to discover the average duration of homeownership and the reasons behind it.

Homeownership duration varies from area to area. In some metro areas, people move frequently, while they tend to stay longer in other locations. According to the National Association of Realtors, homeownership duration varies from 6 to 18 years in the 100 largest metro areas. In more than half of these areas, homeowners spend less time holding onto their property than typical homeowners.

Housing supply shortages and low affordability are two main reasons why people stay in their homes longer. Homeowners staying longer in their homes can further reduce the number of homes for sale and will likely be further locked in place because it is hard to sell and buy at the same time.

Like many other aspects of the economy, the housing market is constantly changing, which has a huge impact on the duration of homeownership. Understanding the average length of homeownership is important because it impacts housing market dynamics, economic trends, and even social factors. Keep reading to learn more.

Average Length of Homeownership in the U.S.

Most American residents live in their homes for less than 15 years. 47% of homeowners reside in their homes for 6-10 years, while 35% live in their homes for 10-15 years.

The homeownership rate in the United States as of the second quarter of 2024 is 65.6%. Over the years, the average length of homeownership has changed and varies, considering factors such as location, age of home, and more. Based on the data, here are some key homeowner stats relating to homeownership:

• The homeownership rate among heads of households under the age of 35 fell to 37.4% in the last quarter, marking the lowest level in four years.

• Contributing factors to this decline include high mortgage interest rates, a tight housing supply, and decreased affordability for first-time home buyers.

• In comparison to a year ago, homeownership rates decreased for households under 35, those between 35 and 44, and individuals aged 65 and older.

  • The rate for those under 35 dropped by 1.1 percentage points to 37.4%.

  • The rate for the 35-44 age group decreased by 0.9 percentage points to 62.2%.

  • The rate for those over 65 saw a more modest decline of 0.3 percentage points.

• The homeownership rate for individuals aged 45-54 increased to 71.1% in the second quarter of 2024, up from 70.8% a year prior.

• Those aged 55-64 also experienced an increase, with their rate rising to 75.8% compared to the previous year.

• The median duration of homeownership in 2024 is now 11.9 years.

• The median length of homeownership has increased by 21% since 2012.

• Homeowners in the Northeast stay longest in their homes.

• Homeownership tenure is the lowest in mountain states.

• People own homes 47% longer on average when built before the year 2000.

Rise in Home Equity

While the appreciation in home prices has made it harder for people to become homeowners, it has caused current homeowners to stay where they are and not make any moves.

Owning a home can make you equity-rich by building equity through mortgage payments and appreciation in the value of the house, making it a valuable asset. Living in the same home for a long time will help you build this equity and pay off loans faster.

Building Home Equity Through Homeownership

Americans' collective home equity hit record highs in the first quarter of 2024 at nearly $33 trillion. Many homeowners are "equity rich," meaning their mortgage balance is no more than half the home's fair market value, allowing them to own more than they owe on their home.

Overall, homeownership has never been more valuable in the United States. Every state has benefited in its own way, but Vermont has had the highest percentage of mortgaged homes considered to be equity-rich, while Louisiana has had the lowest percentage.

At Landhuis Residential, we help buyers and sellers navigate the ever-changing real estate market. Whether you are looking to buy your first home or considering selling, our team is here to guide you every step of the way.