In 2024, homeowner tenure across the United States remained stable compared to the previous year, with some significant variations highlighted in a recent report from Redfin. Notably, homeowners in Los Angeles have seen their average duration of residence extend beyond 19 years, largely due to state tax incentives.
The typical American homeowner remains in their property for around 11.8 years, a figure that has not shifted since 2023, reflecting the impact of persistently high mortgage rates and elevated home sale prices on the overall housing market. Los Angeles stands out with an impressive median tenure of 19.4 years, the highest on record for the city.
Following closely are San Jose at 18.3 years and San Francisco with a median tenure of 16.8 years, showcasing a trend that is particularly pronounced in major Californian cities. The findings can be attributed in part to Proposition 13, which is a California property tax law amendment that enforces a 1% property tax on assessed home values and imposes strict limits on tax increases. According to Redfin, the economics of selling a home greatly discourage mobility for many homeowners.
For instance, selling a residence where the mortgage rate is locked in at 3% to move into a new one with a 7% rate would substantially inflate a homeowner's monthly payments. Additionally, California's high property tax bills exacerbate this issue, further convincing homeowners to remain in their now stable financial situations. The data from Redfin reveals that homeowners in other cities are also holding onto their properties longer: an average of 17.7 years in Cleveland, Ohio, and 16.8 years in Providence, Rhode Island.
On a national scale, property owners are retaining their homes for nearly double the duration compared to 2005, signaling a shift in the housing landscape influenced by demographic changes and financial incentives. ‘There are several reasons for the increase. The American population has grown older, and older people are less likely than younger people to move,’ said Redfin.
Furthermore, older Americans often own their homes outright, or their mortgage rates are lower than current market rates, enhancing the incentive to stay put..