California’s grand geographical divide – the distance from the Pacific Ocean – shows up in numerous economic statistics.
Consider one yardstick of homeownership longevity: the time since sellers purchased their residence, as measured in the third quarter. The Attom study examined 114 metropolitan areas, including 27 in California.
In the 13 metros near the coast or San Francisco Bay, the median length of ownership was 11.8 years, compared with 10.5 years in the 14 inland metros.
It’s not a new trend. Looking back a decade, the gap was 9.5 years coastal vs. 8.7 inland.
But this longevity spread is widening. The length of ownership has grown by 2.3 years on the coast since 2015, but by just 1.8 years inland.
Affordability likely drives the divide. First, the historically cheap mortgages of the pandemic era make relocation financially challenging now that rates are near historic norms. And for those lucky enough to have huge gains from their homes, tax challenges arise when considering relocation.
Plus, the coastal markets have pricier housing, so moves to or within these areas can be prohibitively expensive. Meanwhile, the more affordable inland metros have been where Californians have been moving to, especially into newly constructed homes, moderating longevity.
What’s clear is that Californians, no matter where they live, own their homes longer than the national norms – and that duration is expanding faster.
The median ownership of the 87 metros outside the Golden State was 8.7 years in the third quarter. Non-California longevity was up just 1.1 years from 7.6 years in 2015.
Here’s how sellers in the state’s 10 most-populous metros compare on ownership, ranked by longest stays …
San Francisco: 13.1 years, No. 2 of the 114 U.S. metros – up 3.4 years.
Ventura County: 12.6 years, No. 9 nationally – up 2.6 years.
San Jose: 12.5 years, No. 10 nationally – up 2.8 years.
Sacramento: 11.2 years, No. 27 nationally – up 2.4 years.
Los Angeles-Orange County: 11 years, No. 31 nationally – up 1.9 years.
San Diego: 11 years, No. 32 nationally – up 1.9 years.
Stockton: 10.9 years, No. 33 nationally – up 3.1 years.
Fresno: 10.7 years, No. 35 nationally – up 1.4 years.
Bakersfield: 10.2 years, No. 39 nationally – up 2.3 years.
Inland Empire: 10.2 years, No. 40 nationally – up 1.8 years.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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