Are homeowners overstaying their welcome?!
I remember we used to say, why get a 30-year fixed when you are only living in your home for 5 to 7 years? No one is saying that these days, the length of homeowners across the nation is about 12 years.
According to a Redfin survey:
40% of baby boomers have lived in their homes for 20+ years and 16% of them are not far behind with 10 to 19 years in their homes.
35% of Gen-Xers have lived in the same house 10 + years. 7% of millennials have been in their homes for at least 10 years.
“One, the American population is aging. Roughly 17% of people in the U.S. were 65 and older as of 2020, up from 13% in 2010,” the report reads. “Two, they’re most likely to own homes. Nearly 80% of baby boomers and 72% of Gen Xers own their home, compared to 55% of millennials and 26% of Gen Zers.”
Older Homeowners are incentivized to stay!
Older Americans also have financial incentives attached to staying in their homes. Since 54% of the baby boomer cohort own their homes free and clear without making monthly mortgage payments.
“For that group, the median monthly cost of owning a home — which includes insurance and property taxes, among other things — is just over $600 (similar to the monthly cost for other generations with no outstanding mortgage, but other generations are far less likely to own homes free and clear),” the report stated.
Low mortgage rates and low payments will keep more homeowners in their homes. Which will only cause more issues for first-time homebuyers!
Keeping inventory off the market continues to cause housing shortage issues all over the US. We are all living longer, so that means we are going to stay longer in our houses.
After the age of 60, most Americans are only going to move 1 more time if that, and that is not helping our housing issues.
First-time home buyers are turning to renting, new construction, living with mom and dad, and having to be much more patient when it comes to buying their first home.
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