Baby boomers may be to blame for the country's housing shortage as many older Americans choose to age in place.
Findings published by real estate brokerage Redfin show that the median U.S. homeowner is staying in their home for 11.9 years, twice as long as they used to. A decade ago, homeowners only stayed in their homes for an average of 6.5 years.
The driving force behind that shift is baby boomers, who are between the ages of 57 and 75, the real estate listing site said. Specifically, around 40% of boomers who own their homes are staying put for 20 years or longer, and another 16% have lived in their homes for 10 to 19 years.
In comparison, 35% of Gen X homeowners have lived in the same home for at least 10 years. Among millennials, 7% have lived in their home for 10 years or longer, 13% have stayed for five to nine years, and 30% have stayed for less than five years. Nearly all Gen Z homeowners have only stayed in their homes for less than five years.
Why Are Baby Boomers Hanging onto Their Homes?
For many older Americans, hanging onto their homes is largely a result of a "financial incentive," the study said. Over 50% of baby boomers now own their homes without any outstanding mortgage. Among baby boomers still paying off their mortgage, they have likely secured a much lower rate than they would if they sold their current home and bought a new property with today's rates, which climbed to 6.77% in the week ending Feb. 15.
In addition, some state tax systems incentivize people who stay in their homes as they get older. For instance, Texas homeowners over the age of 65 can defer property taxes until their home is sold. In California, Proposition 13 limits property tax increases.
A recent University of Michigan National Poll on Healthy Aging poll also found that nearly 9 in 10 Americans, or 88% of individuals between 50 and 80 years of age find it important to "age in place."
The country's available home supply remains down by 34.3% from the typical amount before the COVID-19 pandemic in 2020, per Fox Business, citing data from Realtor.com.
READ NEXT: Pending Home Sales Sees Significant Decline as Mortgage Rates Climb To Highest Since December
