When it comes to the real estate business, it’s very easy to focus on the short-term, including prices, inventory, pending and actual sales. But, when you run a brokerage, it’s essential to look at the long-term because, as leaders, we need to be out in front of potential changes to make the best decisions to ensure the growth of our businesses.
This is where macro trends come into play – pieces of the bigger picture that can influence our business. For example, one of the macro trends that is not tracked closely that I’ve been paying attention to is homeownership tenure, specifically how long a homeowner stays in their home before entering the market again.
If you asked real estate professionals their thoughts on the average number of years an owner stays in their home, they’d probably say about seven or eight years. But, according to new reports from the National Association of Realtors (NAR), recent homebuyers intend to remain in their homes almost twice that. In the 2020 Profile of Home Buyers and Sellers Report, people who have recently bought a home intend to stay for at least a median of 15 years.
This trend has been visible over recent years and has only become more pronounced as Baby Boomers redefine aging. Remember, the U.S. Census reports that those 65+ have the largest percentage of homeownership at 79.6%, followed by those 55-64 (75.4%); these groups want to stay put.
If you think inventory is an issue now, what happens downstream when fewer people put their homes on the market? And what happens if today’s inventory influencers – builders and investors – are still contributing to a low inventory environment? It’s a question that was recently posed to ERA® Real Estate brokers across the country. Their answers reflect an astute combination of short-term activity and long-term positioning.
We are excited to share their insights, reactions and responses in a new report: Homeownership Tenure and its Impact on the Industry. The report speaks to the need for continuous adaptation at every level of the business.
Homeownership is not going away, and real estate brokerages and sales professionals remain the conduit for most consumers.
Macro trends in real estate are where the rubber meets the road. Knowing when and how to adapt to these trends is a great competitive advantage, one that successful brokers across the country will continue to leverage no matter the market conditions.