Americans are staying in their homes longer than ever, a trend that is tightening housing supply and pushing prices further out of reach for many buyers, Bloomberg writes.
As of December, the typical homeowner had remained in their home for about 12 years, nearly double the median tenure from two decades ago, according to a report from brokerage Redfin.
Several forces are keeping homeowners in place. Higher borrowing costs and moving expenses make upgrading or downsizing less attractive, while many owners are reluctant to give up the historically low mortgage rates they secured in recent years. At the same time, rising home values have increased household wealth, giving owners less incentive to sell.
The result is a housing market with limited inventory and elevated prices, particularly challenging for first-time buyers. Demographics are also playing a role, with empty nesters holding onto larger homes that might otherwise enter the market for younger families.
Economists say the dynamic is reinforcing a cycle that continues to constrain supply.
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