Why People Are Staying in Their Homes Longer

One of the biggest changes I've seen in recent years is how long people are staying in their homes. Today, the average homeowner stays put for about 11 years, far longer than the five to seven years we used to see.

The typical home seller today is about 64 years old, which helps explain why many people are choosing to stay put longer than ever before.

Another major factor is interest rates. Many homeowners today aren't necessarily in love with their home; they’re in love with their rate. Because of that, more people are choosing to remodel or update rather than move, which is why home improvement activity has been picking up.

What often happens next is interesting. Once people fix up their home, they start thinking about what they really want. Quite often, those updates become the bridge that eventually leads to selling.

So why do people move when they finally do?

More than anything, it comes down to family, friends, and relatives. About 23% of moves happen simply because people want to be closer to the people they care about most. This is especially true for homeowners in their 60s and beyond, many of whom are downsizing or relocating to be closer to their children, and most of all, their grandkids.

After selling, here’s what many homeowners choose to do:

• 50% buy a newer home
• 34% buy a bigger home

That also means a large group is downsizing, often with substantial equity. In many cases, some of that equity is used to help younger family members buy a home. At the same time, nearly half of those buying larger homes are making multi-generational purchases. A  trend that has tripled over the past six years.

The bottom line.

People don't move because of headlines or hype. They move because of life, family, comfort, and what matters most in their next season.

If you're curious how these trends relate to your own plans. Whether that's staying put, improving your home, or making a move down the road, I'm always happy to be a resource and help you think it through.