Fewer people moving = fewer homes for sale
Americans are taking the term “homebodies” to a new level, as the typical American homeowner is now staying in their home for five years longer than they did just nine years ago.
A new study from Redfin shows that the typical American homeowner has spent 13 years in their home. In 2010, homeowners stayed put for up to eight years.
For senior citizens, it’s a little easier to stay put. Many local governments put policies in place that reduce property tax burdens for its older residents, making it more affordable for seniors to stay in their homes, Redfin said.
Because seniors are staying in their homes, it has caused a shortage of 1.6 million homes, according to Freddie Mac.
To that point, a recent report from Zillow showed that there were 102,112 fewer homes on the market in the U.S. in September than there were last year during the same month.
According to Redfin’s report, there are some cities that stand out in terms of homeowners hanging onto their homes the longest.
Which cities homeowners have stayed in the longest? Salt Lake City; Houston; San Antonio; Dallas and Fort Worth, Texas.
In each of these cities, homeowners are staying in their homes for at least 20 years.
“In Dallas, there are many neighborhoods that were built in the 1950s and 1960s where most of today’s residents are still the original homeowners,” said Dallas Redfin agent Christopher Dillard. “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.”
In San Francisco, the median homeowner has been in their home for 14 years, while it was 10 years in 2010. The median home price has also risen in San Francisco and there are half as many homes available on the market, which doesn’t come as a shock since it is surrounded by major tech companies.
Median tenure is the highest in Salt Lake City, where the number of homes for sale has plummeted 59% from 2010 to 2019.