Economist's Commentary: April 25, 2008

Home Tenure: Expectations vs. Reality 

By Jessica Lautz, Senior Research Analyst

When home buyers move into their new home, they expect that they will be there for a long period of time, typically 10 years. However, typically home buyers and sellers are in their previous home a tenure of six years. Even during the height of the housing boom in 2004 and 2005, when flipping homes received a lot of media attention, the median tenure in homes remained constant at six years.

In 2006 and 2007, there was an increase in the percent of home buyers who remained in their previous home for two to three years, and a decrease in the percent of home buyers who remained in their previous home four to 10 years. 

First-time buyers expect to remain in their home for shorter times than other populations of home buyers, typically seven years. Repeat buyers of new homes and previously owned homes all expect to be their recently purchased home for 10 years.

By age, there is some variation of homeownership expectations. Buyers aged 18 to 24 expect to own their home for five years, while those aged 25 to 64 expect to be in their home 10 years. Home buyers who are over 65 expect to be in the their home 15 years.  The actual years that home buyers are in their home is typically shorter.

This is one in a series of commentaries by the Research staff of the National Association of REALTORS®. Read more commentaries >

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