The landscape of American homeownership has shifted. Nationally, the typical homeowner now stays in their home for 12 years before selling, nearly double the 6.5-year tenure seen in 2005. But in Los Angeles, this trend is even more extreme: local homeowners are holding onto their properties for a median of 20 years.
At Bejaui & Associates, we analyze how this historic drop in housing turnover impacts buyers and sellers across Southern California.
Why Are Los Angeles Homeowners Staying So Long?
Several factors are keeping inventory tight and locking in homeowners across LA:
The Proposition 13 Factor. Under California's Proposition 13, property tax assessments generally cannot rise more than 2% per year until ownership changes. Homeowners who have been in their properties for decades enjoy extremely low tax bases, making moving a significant financial hurdle.
The Cost of Moving. Upgrading or downsizing in today's market is expensive. Between higher interest rates, rising home values, and closing costs, staying put is often much more affordable than buying a replacement home, even for owners with substantial equity.
Proposition 19 Relief. While Proposition 19 allows qualifying homeowners aged 55 and older to transfer their low tax base to a new primary residence, the overall friction of moving still keeps many in place.
The Market Impact: Hidden Shortages
This extended tenure creates an "inventory-starved" environment. Even without a change in the physical number of homes, lower turnover means fewer options for buyers, especially in established neighborhoods. This particularly impacts entry-level buyers, as starter homes are not recycling back into the market as frequently.
What This Means for Orange County and Southern California Buyers
Proposition 13 and Proposition 19 apply statewide, not just in Los Angeles, and the same low-turnover dynamic plays out across Orange County and the rest of coastal Southern California. Longtime owners in Newport Beach, Corona del Mar, and the surrounding communities face the exact same financial trade-off: a decades-old tax base that's expensive to give up, even when the equity gained from selling would be substantial. For buyers, that means the same tight, slow-turning inventory dynamic seen in LA is very much a factor here too, particularly in established, high-demand neighborhoods where longtime owners have every incentive to stay rather than sell.
Whether you want to navigate this tight market as a buyer or explore how to leverage your home equity without losing your tax advantages, our team at Bejaui & Associates is here to guide you.
Source: National Association of Realtors (NAR)
Contact us to discuss your real estate goals →