If you are looking for more evidence that rising interest rates and soaring home prices are keeping Americans “stuck” in their current homes, look no further than the most recent housing data from ATTOM Data Solutions.
According to the firm’s quarterly home sales report, U.S. homeowners who sold in the third quarter had owned an average of 8.19 years, up from an average of 7.97 years in the second quarter and up from 7.77 years in the third quarter of 2016 to reach a new record high as far back as ATTOM has data available, to the first quarter of 2000.
Among 99 metropolitan statistical areas with a population of at least 200,000 and sufficient historical data, those with the longest average homeownership tenure for homes sold in the third quarter were Springfield, Mass. (12.48 years); Worcester, Mass. (12.41 years); New Haven, Conn. (12.35 years); Boston (12.25 years); and Bridgeport, Conn. (12.24 years).
“The marked increase in the length of time that Seattle homeowners are staying in their homes is notable – in 2000, the average homeownership tenure was 5.5 years, and today it is more than a decade,” says Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, where the average homeownership tenure of 10.16 years in the third quarter was the 18th longest in the country and a new record high for Seattle.
“This would help explain, to a degree, why we are experiencing such a lack of inventory in the Seattle market. I wouldn’t be surprised if we saw this number rise further as homeowners choose to stay in their homes and remodel rather than actively compete for a new home.”
Metro areas with the shortest average homeownership tenure were Oklahoma City (6.52 years); Detroit (7.08 years); Austin, Texas (7.11 years); Denver (7.2 years); and Tulsa, Okla. (7.23 years).
Counter to the national trend, the average homeownership tenure decreased from a year ago in 19 of the metro areas analyzed, including Portland, Ore. (down 1%); Cincinnati (down 1%); Salt Lake City (down 1%); Honolulu (down 2%); and Dayton, Ohio (down 1%).