Human Change Brief - Boomers aren’t moving
Older Americans' preference to age in place is becoming more apparent in demographic trends, a Redfin analysis shows. Although "homeowner tenure" dipped slightly from its 2020 peak, homeowners now keep their properties for an average of 11.9 years, up from 6.5 years in 2005. This analysis, drawing on county records to examine median U.S. homeowner tenure by year, points to a trend largely driven by older adults, particularly baby boomers, who are opting to stay in their homes longer.
About 40% of baby boomers have lived in their current homes for at least 20 years, and 16% have been in their homes for 10 to 19 years. For Generation X, more than a third (35%) have owned their homes for at least 10 years. Millennials, facing more frequent job changes than previous generations, have less than 7% who have lived in their homes for a decade or more.
The report also discusses the significant impact older generations have on the U.S. housing market, due to factors such as the aging American population — the share of people 65 and older rose from 13% in 2010 to about 17% in 2020 — and higher homeownership rates among these older generations. Nearly 80% of baby boomers and 72% of Generation X own their homes, compared to 55% of millennials and 26% of Generation Z.
Financial benefits are a major reason older Americans stay in their homes, with 54% of baby boomers owning their homes outright, eliminating the need for monthly mortgage payments. For these homeowners, the median monthly cost of ownership, including insurance and property taxes, is just over $600, similar to costs for other generations without mortgages but who are less likely to own their homes outright.
Baby boomers still making mortgage payments enjoy lower interest rates than those available to newer buyers, making the idea of buying another home less attractive given the current rate environment. Redfin's methodology for the report defines homeowner tenure as the number of years between the most recent sale date of a home and Dec. 1, 2023, with data on tenure by generation from the U.S. Census Bureau’s American Community Survey in 2022.
Despite stable homeowner tenure projections, the increasing number of homeowners staying put is leading to a housing inventory shortage. This long tenure, especially among baby boomers, creates obstacles for young, first-time buyers. Redfin found that baby boomers, particularly those without children at home, own twice as many three-bedroom or larger homes as millennials with children, prompting some young families to consider new construction or renting.
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