One of the by-products of the US housing cycle starting to slow down is that there is considerable uncertainty affecting the urge to buy a new house.

The latest data indicate that the median length of time Americans have owned their homes rose to a record high of more than eight years as of the third quarter of this year, which is 4.5 years longer than when the recession ended in June 2009.

As a recent Bloomberg article notes (Alexandre Tanzi, October 27, 2018) the substantial increase in home-ownership tenure is likely a consequence of tight housing inventory, uncertain job markets in some  communities, and perhaps also the changing demographic trend towards aging.

As well, there is the new current preoccupation that we are now in a rising interest rate environment. That is, the shift away from quantitative easing to quantitative tightening with higher interest rates is probably also forcing the extension of home ownership tenure.

After all, a house holder is in a better position to manage financial obligations by staying put than by trying to upgrade to a more expensive dwelling. A longer stay provides the home owner with the opportunity to pay back a larger portion of the money borrowed to purchase the house.