US Homeownership Tenure Hits Highest Level in 25 Years
A recent announcement by the US real estate analysis company ATTOM on Tuesday, October 21, indicated that the average tenure of American homeowners who sold properties in the third quarter of 2025 reached 8.39 years, setting a record of at least 25 years.
Massachusetts had the longest average property tenure in the third quarter at 12.91 years, followed closely by Connecticut (12.66 years), California (11.2 years), Rhode Island (11 years), and Washington (10.74 years).
Maine had the shortest average tenure at only 4.8 years, followed by Mississippi (5.71 years), South Dakota (5.79 years), West Virginia (6.04 years), and Georgia (6.11 years).
ATTOM stated that the extended tenure reflects the various factors shaping the housing market in 2025.
The report mentioned, “Higher mortgage rates may lower homeowners’ willingness to move, as many still benefit from the lock-in effect of historically low rates.”
It also stated, “Limited inventory and rising home prices make finding an affordable next residence challenging, leading potential sellers to extend their tenure.”
According to ATTOM data, all-cash transactions continued to rise in the third quarter, with 38.9% of homes sold nationally falling under all-cash transactions, up from 37.6% in the third quarter of 2024.
ATTOM analysis suggested, “The increasing proportion of all-cash transactions indicates that more buyers may completely avoid mortgage financing, including investors or existing homeowners downsizing using accumulated home equity, a trend that will continue to impact market liquidity and overall dynamics.”
In a statement on October 16, ATTOM mentioned that sellers in the third quarter profited 49.9% in typical single-family home or condo transactions. Although slightly lower than the 55.4% profit level in the third quarter of 2024, it still far exceeded the profit margins of around 30% for homeowners before 2020.
Since the outbreak of the pandemic, soaring home prices have brought substantial profits to willing sellers.
According to data from the Federal Reserve Bank of St. Louis, the average selling price of homes in the US in the second quarter reached $512,800, significantly higher than $371,100 five years ago (in the second quarter of 2020).
ATTOM CEO Rob Barber mentioned, “During the traditional peak season of summer sales, property profit margins have consistently remained at high levels.”
He added, “Although the continued rise in prices may deter buyers and suppress demand, the recent decline in mortgage rates may help maintain market participation.”
On the other hand, while high home prices have brought substantial profits to sellers holding onto properties during the pandemic, the difficulty of selling homes has increased.
Real estate brokerage firm Redfin stated in a declaration on October 16 that within the four weeks ending on October 12, new listings had increased by 4.1% year over year, marking the largest increase in four months, coinciding with a slowdown in buyer activity.
The company noted that high prices, along with continued federal government shutdowns and financial instability triggered by tariff policies, have made many buyers cautious in their homebuying decisions.
Jo Chavez, a top Redfin agent in Kansas City, mentioned that high mortgage rates are another key factor deterring buyers from entering the market.
Chavez said, “Despite rates falling from their peak, many are still waiting for rates to drop below 6% before making a move.”
Rates have been on a downward trend overall since June. According to Freddie Mac data as of the week of October 16, the average weekly rate for a 30-year fixed-rate mortgage was 6.27%.
Although the current 6.27% rate is lower than the annual peak of 7.04% in January, it is still significantly higher than pre-pandemic levels. Five years ago, that rate was only 2.81%.
Chief economist of real estate data company Bright MLS, Lisa Sturtevant, stated in a commentary on October 16 that the recent drop in mortgage rates could spark competition among buyers, ultimately driving up home prices.
She wrote, “Looking ahead for the remainder of the year, predicting rate trends is challenging, but it is reasonable to assume they won’t significantly drop further. Buyers waiting for rate cuts may face rising home prices without improvements in mortgage rates.”
She added, “In the coming weeks, mortgage rates may actually rise, as the Federal Reserve continues to remove mortgage-backed securities from its balance sheet, potentially exerting upward pressure on mortgage rates.”