How Long Do Most Families Live in a House?
Whether due to life changes or job changes, some families move frequently while other families keep their homes for decades. Do your parents still have the home you grew up in? Or do you struggle to remember the addresses of the homes of your childhood because there were so many? It’s interesting to think about how long families live in their homes, and it also impacts homeownership statistics and sales predictions.
According to the National Association of Realtors (NAR), the median tenure of a family in a home (meaning how long a family stays in a home prior to moving) has changed dramatically over the last twenty years. As the graph below shows, from 1985-2008 the median tenure averaged exactly six years. However, since 2014, that average has increased almost 50% to almost ten years.
Most experts agree that the fall in home prices during the housing crisis left many homeowners in a negative equity situation where their home was worth less than the mortgage on the property. The uncertainty of the economy made some homeowners more fiscally conservative about making a move.
Median tenure of a family in a home statistics are expected to begin to fall back to lower numbers again soon. Here’s why:
- Home prices have been rising dramatically over the last several years. Many homeowners who were in a negative equity situation have regained their positive equity. According to CoreLogic, 95.3% of homes with a mortgage are now in a positive equity situation.
- With the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago. Confidence in the economy and the housing market are making homeowners less fiscally conservative.
- According to NAR’s 2018 Home Buyer and Seller Generational Trends Report,“Sellers 37 years and younger stayed in their home for six years…” These homeowners, who are looking for more space and better school districts to accommodate their growing families, are likely to move more often.
Many experts believe that a large portion of homeowners are not in a house that is best for their current family circumstance, for example empty nesters living in the family home or young families living in space too small for their growing families. With changes in equity situations and fiscal confidence, these homeowners are ready to move. We expect the median tenure stats to drop significantly with these changes.
How does the median tenure affect you or your family? Are you looking to downsize to rid yourself of extra space you don’t need? Or looking to upsize for more space for your growing family? Whatever your needs, the Mittelstaedt Team is here to help you determine if this is the best time for you to move. And if it is, with our team you will be in the best hands for both buying a new home that fits your changing needs and selling your home for the price you want in the time you need. Contact us today for more information.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. The Mittelstaedt Team does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. The Mittelstaedt Team will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.