How Homeownership Tenure Affects the Economy

Blomquist: “Rising homeownership tenure, which is the trend we’ve seen over the past few years, means fewer new homeowners in the form of first time homebuyers are being added to the mix, and that represents a paradigm shift in the structure and future growth of the housing market.”

IRVINE, CA—Rising homeownership tenure means fewer new homeowners in the form of first-time home buyers are being added to the mix, and that represents a paradigm shift in the housing market, ATTOM Data Solutions’ SVP Daren Blomquist tells GlobeSt.com. According to a recent report from the firm, homeowners who sold in Q1 2017 had owned an average of 7.97 years, down slightly from a record-high average homeownership tenure of 8.00 years in Q4 2016, but still up from 7.68 years in Q1 2016. Homeownership tenure averaged 4.26 years nationwide between Q1 2000 and Q3 2007, prior to the Great Recession.

We spoke with Blomquist about what declining homeownership means for economists and how homeownership tenure relates to pricing and the economy.