Why Is the Average Length of Homeownership Rising?

Los Angeles and South Bay Real Estate Video Blog with Lenny LaRocca

The length of homeownership is rising both here in California and across the United States. So, why is this happening and what does it mean for the real estate market?

Looking to buy a Los Angeles home? Search all homes for sale

Selling your Los Angeles home? Get a FREE home value report

Length of homeownership has increased not only here in California, but nationwide. A recent study conducted by the Adam Data Solutions Group collected information from 11 major metropolitan cities in California, and it found that the typical length of homeownership is almost two years longer than the previous average of five to seven years. Nationally, the length of homeownership has increased by about a year and a half. Today, I’d like to take a look at some of our nearby counties. In Los Angeles and Orange County, the average length of homeownership in 2012 was 7.11 years. As of March of this year, the average length of homeownership in those same counties is now at 9.59 years. So, why has this change taken place? Many people believe the recent recession has a lot to do with it. As I like to say, many homeowners may not love their home, but they do love their mortgage. Other areas saw similar changes. San Francisco went from 7.72 years of ownership in 2012 to 9.95 years today. Also, Silicon Valley went from 5.75 years in 2012 to 9.79 years in 2017. This shows us a fairly consistent trend across many major cities in California. Let’s also take a look at San Diego. In 2012, the average length of homeownership in San Diego was 7.3 years. Now, the average length of homeownership in San Diego is up to 9.43 years.

We’re seeing a very healthy market, so now is the time to make your move.

One of the things this trend tells me is that now is the time to sell. This is something I advise strongly to my sellers, since today’s inventory is low and demand is strong. Low interest rates are also playing a key role in buyer appetites on the market. At the beginning of 2017, we predicted that a lot of buyer consumption on the market would be coming from millennials. This has happened to a degree, but not yet to the extent that many assumed would be the case. All this just goes to show that you shouldn’t wait around on what you expect might happen from the market. For example, a lot of my buyers have been asking me if I think they should wait for prices to drop. However, my advice to buyers is not to wait. You never know where interest rates or the economy will be tomorrow. Now is the time to make your move. We’re seeing a very healthy market with great interest rates. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.