How long do owners stay in their Boston luxury condo?
The National Association of Realtors (NAR) keeps historical data on many aspects of homeownership. One of the data points that has changed dramatically is the median tenure of a family in a home, meaning how long a family stays in a home prior to moving. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%.
Why the dramatic increase?
One other reason for the increase was brought to light by NAR in their 2017 Home Buyer and Seller Generational Trends Report. According to the report,
“Sellers 36 years and younger stayed in their home for six years…”
These homeowners who are either looking for more space to accommodate their growing families or for better school districts are more likely to move more often (compared to 10 years for typical sellers in 2016). The homeownership rate among young families, however, has still not caught up to previous generations, resulting in the jump we have seen in median tenure!
What does this mean for Boston luxury housing market?
Many believe that a large portion of homeowners are not in a Boston condo that’s best for their current situation; They could be baby boomers living in an empty, three bedroom condo now that their children have moved out. Another example, middle age couple living in a Beacon Hill luxury condo that suited them when they were younger, but now they need to move to a neighborhod closer to where their kids attend a private school.
These homeowners are ready to make a move, and since a lack of housing inventory is still a major challenge in the current housing market, this could be great news for Boston luxury condo sellers.
If your thinking about buying or selling a Boston condo, please contact Robert Veek at 617-420-1401.
Updated: 1st Quarter 2018