Average length of homeownership: Americans spend less than 15 years in one home

Average length of homeownership in the U.S.

Most American residents live in their homes for less than 15 years. Forty-seven percent of homeowners reside in their homes between six and 10 years, and 35% live in their homes for 10-15 years. Although conventional mortgages are calculated for a 30-year repayment, few people are living in the same house for 30 years. 

The most recent average duration of homeownership was eight years while the median was 13.2 years in 2021 — an increase of about three years over the last decade. On average, homebuyers expect to live in their homes for 15 years after purchasing — an overestimation compared to the actual tenure. Additionally, 44% of buyers anticipate spending 16 years or more in their home, which we know is far off from how many people actually do.

First-time buyers spend less time in their homes

The average age for buying a first home is 27 years old — a significant drop from 34 years old only a few years ago. First-time homebuyers typically fall outside of the norm when it comes to homebuying behaviors. Most first-time buyers keep their first starter home for only two to five years. In fact, 26% of 22- to 30-year-olds anticipate living in their homes for four or five years after purchasing, and 7% expect to stay for only two to three years.

Lower-income families remain in their homes longer

Lower-income families who rent or live with others typically move more frequently for reasons like finding more affordable or better-quality housing, adjusting to household size changes or relocating for employment. However, after achieving homeownership, the frequent moves slow down and low-income households exceed the average length of home tenure.

How is the current market affecting homeownership?

Initially, the pandemic created the perfect environment for encouraging home transactions. With record-low mortgage rates and the rise of remote work, many Americans seized the opportunity to relocate and buy.

The consequences of the booming housing market have now brought rising home prices, high mortgage rates and inventory shortages. As a result, buying and selling began to slow. In turn, this may increase the average length of homeownership for future years. One out of seven people have no intentions of buying a new house, and 51% reported that they are satisfied with their current home.

How long should you live in a house before selling?

Real estate and financial experts recommend living in a house for at least five to seven years after closing. Whether you stay for that long is entirely up to your situation. However, it’s anticipated that a home will appreciate enough after five years that you can recoup some of the initial purchase costs and avoid negative equity.

Another reason to wait it out before selling is to avoid capital gains taxes, the levy a seller pays on selling their property (whether real estate, possessions, stocks, etc.). If you stay in your home for at least two years, you are not subject to capital gains taxes as long as the sale’s profit is less than $250,000 (for single individuals) or $500,000 (for married couples). Instead, you would exclude the profit from that year’s taxable income. If the gains exceed the limits, you will be responsible for paying the difference.

When weighing selling or staying, consider how long a house lasts and whether repair costs outweigh the benefits of buying a new home. For example, roofs typically need replacing about every 20 years, more or less. HVAC systems last about 15 years, and large appliances should last around 10. If you bought a new build or are the second owner of a home, these replacements and repairs may seem like they hit you all at once.

In most cases, repair costs will be less than a new home’s price tag, but if you’re already considering moving, investing these repair costs into a new property might make sense. Or, while you might not be thrilled about replacing a roof after only five years of living in a home, if you’re happy with your location, it may be worth renovating over moving.

Tips for extending the lifespan of a house

More than a third of houses in the U.S. are older than 50, with 5.65 million standing for over a century. With proper care and typical replacements, it’s proven that the lifespan of a house can outlast that 100-year mark.

For some people, the desire to remain in their home and lengthen their homeownership tenure outweighs the reasons for moving. If you’re in your forever home, there are a few things you should do to improve your home’s longevity. It starts with routine care and homeowners insurance.

Keep up with routine maintenance

While spending a weekend checking up on your home’s HVAC filters or cleaning out gutters might not be what you consider fun, it’s part of homeownership.

Routine maintenance on your appliances and outside structures (like roofs and windows) helps keep your home in tip-top shape to outlast wear and tear. Attend to any emergency issues, like leaky pipes or blocked chimneys, immediately to avoid major damage. 

Use this home maintenance checklist to guide your monthly, seasonal and annual upkeep.

Opt in for regular inspections

Part of homeowner maintenance should also include regular home inspections. Many people will have their home inspected when purchasing it but often won’t again until a surprise issue arises. Sticking to a regular inspection schedule puts your home in a position to avoid extensive problems and your bank account to prepare for replacements. 

Some home inspectors recommend professional inspections every three to five years. Inspectors should analyze the soundness of your home’s overall structure as well as electrical wiring and plumbing. 

However, as part of routine home maintenance, it’s wise to look over some areas of your home annually. For example, if you live in a snowy region, you should check for roof damage every spring.

Revisit your homeowners insurance

Each year you should set time aside to review your homeowners insurance policy to ensure there are no gaps in your coverage. This is also a good time to catalog and add any new possessions or home upgrades to your personal property coverage.

Homeowners insurance may not directly correlate to increasing your home’s lifespan, but it can help you with the costs associated with repairing damages to your home. It’s important to note that the average homeowners insurance policy does not cover all damages or property losses. A few of the most common perils covered are:

• Fire or smoke damage
• Theft or vandalism 
• Damage from the weight of snow or ice
• Falling objects (like a tree or telephone pole)
• Frozen pipes
• Water damage from plumbing or HVAC issues
• Riots