Homeowners are staying put longer. Here's how it affects you.
Both homeowners and first-time buyers are feeling the effects of the trend.
American homeowners are staying in their homes longer, and the effects of the trend are rippling across the market.
The typical U.S. homeowner has lived in their home for 13 years as of 2019, compared to eight years in 2010, according to a new analysis by real estate brokerage firm Redfin.
Salt Lake City, Houston, Fort Worth, San Antonio and Dallas had some of the longest median home tenures, according to the analysis. Dallas Redfin agent Christopher Dillard said in a blog post that there are many original homeowners still living in neighborhoods that were built in the 1950s and '60s.
"Because prices have been going up and folks are gaining more and more equity, it's hard to justify selling when there aren’t many if any affordable options," Dillard said in the post.
For those homeowners staying longer, it means they can take advantage of programs that reduce property tax burdens on seniors and financial tools like reverse mortgages, according to Dillard.
On the other hand, the trend also means there are fewer homes available to first-time buyers, according to Redfin. In San Francisco, where the median home tenure has risen from 10 years to 14 since 2010, there are now about half as many homes for sale as there were then. And the median home price there has doubled during that same timeframe.
Redfin found that many of the San Francisco residents staying in their homes longer are the ones who own the more affordable homes. The firm estimated the median value of homes where the resident hasn't changed for more than 20 years is about $122,000 lower than for homes that have changed hands in the past five years.
A shrinking number of homes available on the market means that the market is more competitive. In Salt Lake City, which had the longest tenure, Redfin found the number of homes for sale dropped 59 percent this year compared to 2010. In turn, that leads to fewer owners listing their homes because it’s harder for them to find a new home.
Here are the metro areas with the longest median home tenures, according to Redfin:
5. Dallas — 21.9 years
Downtown Dallas.
Dallas’ median home tenure increased from 13.3 years in 2010 to 21.9 years in 2019. During the same period, the number of homes for sale fell 14 percent and the median sale price jumped 76.5 percent to $299,900.
FOR MILLENNIALS, IS RENTING ACTUALLY SMARTER THAN BUYING A HOME?
4. San Antonio — 22 years
A residential district and the downtown skyline of San Antonio, Texas at twilight.
San Antonio’s median home tenure increased from 13.3 years in 2010 to 22 years in 2019. During the same period, the number of homes for sale slumped by 10.9 percent and the median sale price increased by 50.6 percent to $234,000.
3. Fort Worth — 22.6 years
Fort Worth skyline with the Trinity River in the foreground.
Fort Worth’s median home tenure increased from 14 years in 2010 to 22.6 years in 2019. During the same period, the number of homes for sale dropped by 33.2 percent and the median sale price jumped by 78.6 percent to $250,000.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
2. Houston — 23.2 years
The skyline of downtown Houston, shot from a bridge over the Buffalo Bayou within Eleanor Tinsley Park.
Houston’s median home tenure increased from 14.5 years in 2010 to 23.2 years in 2019. During the same period, the number of homes for sale fell 7.1 percent and the median sale price leaped up 58.2 percent.
US CITIES WITH THE MOST MILLION-DOLLAR HOMES
1. Salt Lake City — 23.4 years
Salt Lake City is the capital and the most populous municipality of Utah.
Salt Lake City’s median home tenure increased from 14.7 years in 2010 to 23.4 years in 2019. During the same period, the number of homes for sale dropped by 59 percent and the median sale price flew 74.4 percent to $340,000.