First American data indicates that homeownership tenure has risen 10% just from 2017 and has significantly climbed since the recession.

Americans are remaining in their homes longer than ever before, consequently tightening the lid on housing supply. “Tenure jumped to seven years between 2008 and 2016, and the most recent data from December 2018 shows that the median length of time someone lives in their home has increased 10% compared with a year ago,” First American Chief Economist Mark Fleming said. But why are more and more homeowners deciding to stay put? “Clearly, every homeowner’s decision to sell is different and influenced by personal and family preferences,” Fleming said. “Yet, today, we are in a near unprecedented homebody era, as increasing interest rates, low supply, low rates of foreclosure and tighter credit have increased homeowner tenure to the highest level in 18 years.” 

Lower interest rates are also a leading contributor to the supply and demand stalemate. “The lower the interest rate homeowners have on their existing loan compared to the current market rate, the less incentive there is for homeowners to move, leading to higher tenure length," Fleming continued. “Why move when it will cost more each month to borrow the same amount from the bank?” So, what does that mean for the housing market's future? “While it is unlikely the influences that are currently driving tenure higher will change in the near term, more than half of all existing-homes are owned by baby boomers and the silent generation, who will eventually age out of homeownership,” Fleming added. “When that occurs, the problem may not be a lack of supply, but the exact opposite.” 

Source: HousingWire