Homeowners & What It Means for the Chicago Real Estate Market

Homeowners today are staying in their homes nearly twice as long as they did 20 years ago. Learn why tenure is increasing, how it impacts inventory across Chicago, and what buyers and sellers should consider in today’s low-movement housing market.

Homeowners Staying in Their Homes a Lot Longer Than They Used To

Across the U.S. — and especially in major metro areas like Chicago — homeowners are staying in their properties significantly longer than they did just one or two decades ago. What used to be a typical 5–7 year tenure has now stretched to 10–15+ years, with many owners choosing to “lock in” low mortgage rates, remodel instead of move, or simply stay put due to economic and lifestyle preferences.

This trend has reshaped the housing market across neighborhoods such as Lincoln Park, Lakeview, Bucktown, Wicker Park, Naperville, Oak Park, and the North Shore. And as a result, inventory has tightened, affordability has shifted, and both buyers and sellers have had to adjust their strategies.

In this comprehensive guide, Lucid Realty breaks down:

Why homeowners are staying longer than they used to
How extended homeowner tenure is affecting Chicago real estate
What buyers and sellers need to know to succeed in a low-inventory environment
Whether waiting or moving now makes the most financial sense

How Long Are Homeowners Staying in Their Homes Today?

According to national housing studies, the average homeowner tenure in the early 2000s was 6–7 years. Today, that figure has climbed to 12–15 years, with some markets reporting even higher numbers.

Key drivers behind increased homeowner tenure include:

1. Ultra-Low Mortgage Rates From 2020–2022

Millions of homeowners secured 30-year mortgage rates under 3%.
This has created a “golden handcuffs” effect — moving would mean replacing a historically low rate with a rate that could be more than double today.

2. Rising Home Prices

As home values across Chicago neighborhoods soared (Lincoln Park, West Loop, Logan Square, and the North Shore especially), buying up became more expensive. Many homeowners are choosing to remodel instead.

3. Limited Housing Supply

Low inventory discourages movement. Many homeowners simply stay put because they don’t see anything on the market worth moving for.

4. Demographic Shifts — Aging in Place

The large Baby Boomer generation increasingly prefers staying in their homes rather than downsizing.
This has removed millions of homes from circulation.

5. Remote Work Stability

With hybrid and remote work now part of daily life in Chicago’s workforce, people no longer need to move for job proximity.

How This Impacts Chicago’s Housing Market

Chicago is uniquely affected due to its mix of historic housing stock, suburban migration patterns, and highly desirable neighborhoods close to transit, shopping, and major landmarks like:

Millennium Park
Navy Pier
The Riverwalk
Wrigley Field
The 606 Trail

Extended homeowner tenure affects the market in several meaningful ways.

1. Lower Inventory Across the Board

The longer people stay in their homes, the fewer listings hit the market. This has resulted in structural inventory shortages, especially in:

North Side neighborhoods
Western suburbs like Elmhurst, Naperville, Downers Grove
North Shore communities such as Evanston, Wilmette, and Winnetka

Homes that historically would have turned over every 6–8 years may now only hit the market every 15+ years.

2. Higher Prices Due to Supply Constraints

With fewer homes for sale, especially move-in-ready properties, bidding wars have become more common.

Single-family homes near popular schools — such as Lincoln Park High School, Lane Tech, or New Trier — continue to experience intense demand even in slower economic cycles.

3. Move-Up Buyers Have Disappeared

Traditionally, move-up buyers — those selling a starter home to purchase something larger — fueled a healthy market cycle.

But today, homeowners with a 2.8% mortgage rate are reluctant to trade up to a 6–7% rate, even if they need more space.

This has created a bottleneck that affects:

First-time buyers
Growing families
Sellers who rely on move-up inventory to increase supply

4. A Renovation Boom Across Chicago

Instead of moving, Chicago homeowners are choosing to remodel.

Popular upgrades include:

Finishing basements
Adding bedrooms or expanding square footage
Updating kitchens and baths
Improving outdoor living spaces
Landscaping and curb appeal

Neighborhoods with historic homes — such as Old Irving Park, Ravenswood, Oak Park, and Hyde Park — have seen a noticeable uptick in renovation permits.

5. Longer Tenure Leads to More Equity

Because homeowners are staying longer, they’ve built significant equity. This strengthens overall financial stability but also widens the divide between those who bought earlier and those trying to enter the market today.

For many Chicago homeowners, their home equity now represents their largest asset.

What This Means for Buyers in Chicago

Buying a home in a low-inventory, high-tenure market can feel challenging, but it’s not impossible — especially with the right strategy.

Tips for Chicago Buyers

Act quickly when a desirable property hits the market
Homes in Lakeview, Bucktown, Andersonville, and the West Loop often sell within days.
Be flexible on features vs. location
Inventory scarcity may require adjusting expectations.
Consider properties that need light updates
Many buyers overlook these, creating opportunity.
Get pre-approved before you start shopping
Sellers prefer buyers who are ready to move immediately.
Work with a brokerage that knows micro-markets
Each Chicago neighborhood has unique trends and dynamics.

What This Means for Sellers in Chicago

If you’re thinking about selling, the extended homeowner tenure trend is on your side.

Advantages for Sellers Today

Higher buyer competition
Multiple-offer scenarios are still common.
Less competition from other sellers
Your home stands out more when inventory is tight.
Strong price support
Many sellers receive offers at or above list price.

Should Chicago Homeowners Sell or Stay?

For many, the answer depends on:

Current mortgage rate
Equity position
Lifestyle needs (downsizing, growing family, new job)
Whether moving offers meaningful financial benefit

A personalized market analysis from Lucid Realty can help clarify whether selling now is the optimal choice.

The Long-Term Outlook — Will Homeowners Start Moving Again?

Experts predict that homeowner tenure may shorten again in the future as:

Mortgage rates normalize
New home construction increases
Baby Boomers eventually begin to downsize
Younger generations place higher value on mobility

However, for now, the Chicago market remains deeply influenced by the “stay longer” trend — and that’s unlikely to change soon.

Thinking About Buying or Selling in Chicago? Lucid Realty Can Help

At Lucid Realty, we specialize in navigating complex market cycles, especially those characterized by low inventory and high competition. We offer:

Detailed neighborhood-level market reports
Personalized home valuations
Buyer strategies tailored to Chicago’s micro-markets
Transparent, expert-led guidance from start to finish

Whether you’re staying longer or considering a move, our goal is to help you make the most informed real estate decision.

Contact Lucid Realty Today

Serving Chicago and the surrounding suburbs
https://lucidrealty.com
Call us to schedule a consultation