From Equity to Stability: The Rise of the Long-Term Homeowner

In today’s property market, two trends are becoming increasingly intertwined: strong equity growth and longer ownership durations. As homes gain in value, many homeowners are choosing not to sell — and with good reason.

Equity on the Rise
Recent CoreLogic data shows that Australian homes have climbed in value by 39.1% over the past five years, which translates to an average equity increase of around $230,000 per property. This isn't just a number on paper — it represents significant financial leverage for those who own property, reinforcing the decision to stay put rather than list their homes.

Longer Ownership Periods Across the Country
Nationally, the average homeowner now holds a house for around 11.3 years, and a unit for about 9.6 years — up significantly from a decade ago. Domain’s tenure data further mirrors this trend: the median tenure in cities like Perth, Sydney, and Canberra stands at approximately 10 years for a house and 8–9 years for units. What’s even more striking is that in suburbs known for their desirability — think mature, amenity-rich areas — homeowners often stay more than twice as long as the national average.

Why Are Homeowners Staying?

• Equity preservation: With substantial value gains under their belt, homeowners are hesitant to erase that advantage.
• Transaction costs: Expenses like stamp duty reinforce the “if it ain’t broke, don’t fix it” mindset.
• Market barriers: Rising prices, affordability pressures, and tight supply make moving increasingly complex.
• Lifestyle lock-ins: Schools, community ties, and neighbourhood appeal further anchor residents to their homes.

What This Means for You
For homeowners, holding onto property isn’t just about sentiment — it’s a strategic decision powered by equity gains and cost considerations. For buyers trying to break in, it means fewer listings and more competition. For agents, it may require a rethink of how we engage homeowners who feel they’re sitting on wealth — but not ready to move.

If you'd like to talk about how this dynamic could affect your property plans, don't hesitate to contact the team at Bellcourt on 08 6141 7848.