Homeowners are now choosing to stay in their homes for longer periods of time, resulting in a significant increase in the average duration of homeownership in the US. Today, homeowners are spending an average of 11.9 years in their homes, which is an increase of 6.5 years compared to 20 years ago. This trend is contributing to the shortage of available homes in the market, which is causing a surge in housing prices.
Baby Boomers are Aging in their Homes
It seems that baby boomers are choosing to stay in their homes longer these days. This is according to Redfin, who reports that nearly 40% of boomers have lived in their homes for at least two decades. Another 16% have lived in their homes for ten to nineteen years. Below we will go over why baby boomers are aging in place and the top places in the US where homeowners are staying the longest (source: Redfin).
Reasons Why Baby Boomers are Not Moving
They Have No More Mortgage
One of the main reasons why baby boomers are staying in their homes and aging in place is because they are mortgage-free. In fact, a whopping 54% of baby boomers own their homes outright, without any outstanding mortgage. This means they only have to pay a median monthly cost of a little over $600 to cover all the expenses associated with owning and maintaining their properties, including insurance and property taxes. It’s hard to beat that when it comes to keeping monthly housing costs low!
State Taxes Incentivize Older Americans to Stay in Their Homes
Many states across the United States offer tax incentives to encourage older Americans to stay in their homes. One such example is California, which has Proposition 13 which limits property tax increases. As a result, many Californians – particularly those residing in LA, San Jose, and San Francisco – are choosing to stay in their homes for longer periods.
Similarly, older homeowners in Texas also have incentives to remain in their homes. Homeowners over 65 in Texas can defer property taxes until the house is sold, making it more cost effective to stay in their homes than to move.
Mortgages are High
The high mortgage rates at 7% are causing baby boomers to feel disinclined to move. Almost all baby boomers have much lower mortgage rates. It really does not make financial sense to move since the mortgage rate on their home is a lot lower than the current mortgage rate.
Baby Boomers Prefer to Age in Their Home
Many baby boomers would rather age in their own homes than move to a senior housing facility. According to Redfin, almost all Americans (90%) between the ages of 50 and 80 consider it important to remain in their homes as they grow older.
Places in the US Where Homeowners Are Staying in their Homes the Longest
1. Los Angeles, CA
- Median homeowner tenure (2023): 18.7 years
- Median sale price (2023): $850,000
Homeowners in Los Angeles tend to stay in their homes for 18.7 years (nearly two decades!), and the median sale price is $850,000.
2. San Jose, CA
- Median homeowner tenure (2023): 17.8 years
- Median sale price (2023): $1,400,000
In San Jose, homeowners typically stay in their homes for nearly 18 years, and the median sale price is $1,400,000.
3. Cleveland, OH
- Median homeowner tenure (2023): 17.4 years
- Median sale price (2023): $199,900
Homeowners in Cleveland stay in their homes for over 17 years, and the median sale price is relatively affordable at $199,900.
4. San Francisco, CA
- Median homeowner tenure (2023): 16.7 years
- Median sale price (2023): $1,297,500
San Francisco homeowners typically stay in their residences for about 16.7 years, with a high median sale price of $1,297,500.
5. Memphis, TN
- Median homeowner tenure (2023): 16.5 years
- Median sale price (2023): $257,990
Homeowners in Memphis tend to remain in their homes for approximately 16.5 years, and the median sale price is $257,990.
6. Providence, RI
- Median homeowner tenure (2023): 16.3 years
- Median sale price (2023): $447,500
In Providence, homeowners stay in their properties for around 16.3 years, with a median sale price of $447,500.
7. Philadelphia, PA
- Median homeowner tenure (2023): 16.1 years
- Median sale price (2023): $250,000
Philadelphia homeowners typically stay put for about 16.1 years, with a median sale price of $250,000.
8. New Orleans, LA
- Median homeowner tenure (2023): 15.6 years
- Median sale price (2023): $265,000
New Orleans residents tend to stay in their homes for approximately 15.6 years, with a median sale price of $265,000.
9. Baltimore, MD
- Median homeowner tenure (2023): 15.6 years
- Median sale price (2023): $350,000
Homeowners in Baltimore typically live in their homes for about 15.6 years and the median sale price is $350,000.
10. Pittsburgh, PA
- Median homeowner tenure (2023): 15.5 years
- Median sale price (2023): $217,000
In Pittsburgh, homeowners tend to stay in their homes for approximately 15.5 years, and the median sale price is $217,000.
11. Richmond, VA
- Median homeowner tenure (2023): 15.4 years
- Median sale price (2023): $370,599
Richmond residents typically remain in their homes for about 15.4 years, and the median sale price is $370,599.
12. New York, NY
- Median homeowner tenure (2023): 15.4 years
- Median sale price (2023): $700,000
Homeowners in New York City stay in their properties for roughly 15.4 years with a high median sale price of $700,000.
13. Chicago, IL
- Median homeowner tenure (2023): 15.2 years
- Median sale price (2023): $306,500
Chicago homeowners typically live in their homes for about 15.2 years, with a median sale price of $306,500.
14. San Diego, CA
- Median homeowner tenure (2023): 15 years
- Median sale price (2023): $840,000
San Diego residents tend to stay in their homes for 15 years, with a relatively high median sale price of $840,000.
15. Washington, DC
- Median homeowner tenure (2023): 13.6 years
- Median sale price (2023): $524,900
In Washington, D.C., homeowners stay in their homes for 13.6 years and a median sale price of $524,900.
16. Hartford, CT
- Median homeowner tenure (2023): 13.4 years
- Median sale price (2023): $327,950
Homeowners in Hartford typically stay in their homes for around 13.4 years, and the median sale price is $327,950.
17. Cincinnati, OH
- Median homeowner tenure (2023): 13.3 years
- Median sale price (2023): $265,000
Cincinnati residents tend to remain in their homes for approximately 13.3 years, with a median sale price of $265,000.
18. Detroit, MI
- Median homeowner tenure (2023): 13.2 years
- Median sale price (2023): $170,000
Homeowners in Detroit typically stay in their homes for about 13.2 years, with a median sale price of $170,000.
19. Seattle, WA
- Median homeowner tenure (2023): 13 years
- Median sale price (2023): $750,000
Seattle residents tend to stay in their homes for approximately 13 years, and the median sale price is $750,000.
20. Riverside, CA
- Median homeowner tenure (2023): 12.2 years
- Median sale price (2023): $550,000
Riverside homeowners typically live in their homes for about 12.2 years, with a median sale price of $550,000.
21. Virginia Beach, VA
- Median homeowner tenure (2023): 11.9 years
- Median sale price (2023): $330,000
Homeowners in Virginia Beach typically stay in their homes for around 11.9 years, and the median sale price is $330,000.
22. Buffalo, NY
- Median homeowner tenure (2023): 11.7 years
- Median sale price (2023): $235,000
In Buffalo, homeowners typically stay in their homes for about 11.7 years, and the median sale price is $235,000.
23. Miami, FL
- Median homeowner tenure (2023): 11.7 years
- Median sale price (2023): $510,000
Miami residents tend to remain in their homes for approximately 11.7 years, amidst a median sale price of $510,000.
24. Sacramento, CA
- Median homeowner tenure (2023): 11.6 years
- Median sale price (2023): $560,000
Homeowners in Sacramento typically stay in their homes for about 11.6 years, and the median sale price is $560,000.
25. Portland, OR
- Median homeowner tenure (2023): 11.4 years
- Median sale price (2023): $530,000
Portland residents tend to stay in their homes for around 11.4 years, with a median sale price of $530,000.
26. Oklahoma City, OK
- Median homeowner tenure (2023): 11.4 years
- Median sale price (2023): $250,000
Homeowners in Oklahoma City typically live in their homes for about 11.4 years, with a median sale price of $250,000.
27. Columbus, OH
- Median homeowner tenure (2023): 11.3 years
- Median sale price (2023): $315,000
Columbus residents tend to remain in their homes for approximately 11.3 years, with a median sale price of $315,000.
28. Milwaukee, WI
- Median homeowner tenure (2023): 11 years
- Median sale price (2023): $280,000
Milwaukee homeowners typically stay in their homes for about 11 years, and the median sale price is $280,000.
29. Minneapolis, MN
- Median homeowner tenure (2023): 10.3 years
- Median sale price (2023): $355,000
Residents of Minneapolis tend to remain in their homes for approximately 10.3 years, amidst a median sale price of $355,000.
30. Jacksonville, FL
- Median homeowner tenure (2023): 10 years
- Median sale price (2023): $372,112
Jacksonville residents typically live in their homes for about 10 years, with a median sale price of $372,112.
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