US homeowners are staying in their houses for an average of 12 years, nearly double the tenure from two decades ago, according to Redfin data. This trend is significantly impacting the housing market, as fewer people are moving and fewer homes are available for sale. The extended homeownership duration reflects both high mortgage rates and limited inventory.

On Bloomberg Markets, Jim Egan, US housing strategist at Morgan Stanley, discussed the implications with Katie Greifeld. Egan noted that the 12-year median tenure represents a fundamental shift in how Americans approach homeownership. Many homeowners are locked into their current properties due to favorable mortgage rates from previous years.

The housing market faces mounting pressure as this trend continues. With fewer homes turning over, new buyers struggle to find available properties, creating a feedback loop that further reduces market activity. This dynamic has contributed to rising home prices and increased competition for the limited inventory that does become available.