What's Happening?
American homeowners are holding onto their properties for longer periods than at any time in the past 25 years. According to new data from ATTOM, the average duration of home ownership reached 8.6 years by the end of 2025, a significant increase from the 4.2
years recorded in early 2000. This trend is attributed to the ultra-low mortgage rates secured during the pandemic, coupled with high home prices and limited housing inventory. The increase in ownership duration is observed across nearly all major metropolitan areas, with the most pronounced effects in coastal and Northeastern cities, where homeowners often remain in their homes for over a decade.
Why It's Important?
The extended duration of home ownership has significant implications for the U.S. housing market and economy. Longer ownership periods can lead to reduced housing market fluidity, potentially limiting opportunities for new buyers and affecting housing affordability. This trend may also impact the construction industry, as fewer home sales could lead to decreased demand for new housing developments. Additionally, the concentration of long-term ownership in specific regions could exacerbate regional disparities in housing availability and affordability, influencing local economies and demographic patterns.
What's Next?
As homeowners continue to stay put, the housing market may experience further constraints in inventory, potentially driving up prices and making it more challenging for first-time buyers to enter the market. Policymakers and industry stakeholders may need to consider strategies to address these challenges, such as incentivizing new construction or revisiting mortgage policies to encourage more movement within the market. The ongoing economic conditions, including interest rate changes and inflation, will also play a crucial role in shaping future trends in home ownership duration.
