CHICAGO, May 28 /PRNewswire/ -- The average American home changes
ownership once every 11.9 years, according to Chicago Title and Trust Co.'s
(CT&T) 1996 study of housing turnover rates. This rate is a substantial
improvement from 1995's rate of 12.6 years.
CT&T calculates the housing turnover rate by dividing the total number of
owned housing units by the total number of home sales in 1996. The CT&T study
focuses on home owners and purchasers, and does not take into account renters
and their moves to new apartments, which would significantly improve the
turnover rate.
Nationally, total home sales increased by 400,300 last year, up 7.6
percent from '95 figures for a total of 5,640,200 in sales. Also on the rise
was the number of owned housing units, up 1.7 percent in '96 to 66,849,000,
with the addition of 1,088,000 owned units.
"1996 performance is a little better than the 12.5-year turnover rate
average for the last 25 years," said John Pfister, vice president and
Marketing Research manager, CT&T. "But we will never see another period like
the late 1970s when the turnover rate dropped below 10 for three straight
years. Those were years of very high real estate speculation," added Pfister.
10 fastest turnover states
The 10 fastest housing turnover states in 1996 are noted in the chart at
right. All 10 states attained turnover rates well below the U.S. average of
11.9 years.
Arizona out-ranked Nevada for the third year in a row, with the fastest
turnover rate of 6.4 years. "Arizona continues to prosper due to its
versatile presence as a retirement and resort center, as well as a high-tech
business center," said Pfister.
Trailing at a close second with 6.9 years, Nevada boasts the highest
employment growth rate in the country. "The Las Vegas growth rate may even
crack 10 percent sometime during 1997. There seems to be no end in sight for
this city," said Pfister.
With six Mountain States making the top 10 list, this region continues to
attract residents due to its stable economy and high consumer confidence.
"Growth in high-tech and other industries is fueling employment growth at a
rate almost twice that of the U.S. average," said Pfister.
Seven states recorded turnover rates of less than 10 years: the five
Mountain States of Arizona, Nevada, Utah, Colorado and Idaho, as well as North
Carolina and Tennessee. Also among last year's 10 fastest housing turnover
rate states, but ranking slightly beyond the 10-year mark, are Arkansas (10.1)
and New Mexico (10.3). New to the top 10 list is South Carolina (10.3).
10 Fastest Turnover
Rates -- 1996
Years
Arizona 6.4
Nevada 6.9
North Carolina 7.4
Tennessee 8.3
Utah 8.8
Colorado 8.9
Idaho 9.9
Arkansas 10.1
New Mexico 10.3
South Carolina 10.3
The top 10 states listed above all have turnover rates below the national
average of 11.9 years.
States with largest number of home sales
California, Texas and Florida led all states with total home sales of
581,000, 368,300 and 323,200, respectively.
"California experienced a dramatic recovery last year, with total home
sales up 17.3 percent from 1995, compared with an increase of 7.6 percent for
the U.S. average," said Pfister. California also made the "most improved"
list in 1996 (see chart above), improving its turnover rate to 11.4 years from
13.2 years in '95. It was the only state within the most improved category to
rank below the U.S. average of 11.9 years.
Texas finally dipped below the U.S. average after several years of higher
turnover rates. Texas' 11.8 turnover rate is second only to California among
the 10 most populous states in the country.
Florida also improved in 1996, although much less dramatically than states
such as California. "For a growth state, Florida's '96 turnover rate of 12.6
years (down from 13.1 the previous year) may indicate that more senior
citizens are finding locations other than Florida to call home," said Pfister.
1996 Highlights
* Most improved rates -- shown are the five states with most improved
turnover rates -- four northeastern states and California:
Years
1995 1996 Improved
Massachusetts 16.7 14.3 2.4 yrs
New Hampshire 15.8 13.9 1.9 yrs
California 13.2 11.4 1.8 yrs
New York 20.4 18.7 1.7 yrs
Rhode Island 16.8 15.3 1.5 yrs
* Unchanged rates -- '96 ratios for the states of Idaho and Wyoming
remained unchanged from '95, at 9.9 and 11.4, respectively.
* Slower turnover rates -- only six states experienced slower turnover
rates in 1996:
1995 1996
Connecticut 13.9 14.5
Hawaii 15.6 17.3
Nebraska 17.2 17.6
New Mexico 9.8 10.3
Vermont 14.4 15.3
West Virginia 11.6 11.7
Turnover rates expected to slow in 1997
CT&T expects turnover rates to increase to 12.4 years in 1997. "Higher
interest rates during the prime buying season and increased uncertainties
about the future will result in a decline of 3 percent in total home sales.
That decline, coupled with an increase of 1.05 million owned housing units,
should slow the ratio to 12.4 years," said Pfister.
Chicago Title and Trust Co. is the source of real estate services,
providing title insurance, escrow and closing services, as well as appraisal,
credit and flood certification products through a network of more than 300
offices and approximately 3,700 agents nationwide. The Chicago Title and
Trust Family of Title Insurers -- including Chicago Title Insurance Co., Ticor
Title Insurance Co. and Security Union Title Insurance Co. -- together issues
approximately one in every four title insurance policies in the United States
with annual gross revenues in excess of $1.3 billion. CT&T also is the parent
company of National Flood Information Services Inc. of Arlington, Texas;
Credit Data Reporting Services Inc. of Kingston, N.Y.; and Market Intelligence
Inc. of Hopkinton, Mass. Chicago Title and Trust Co. is a wholly owned
subsidiary of Alleghany Corp. (NYSE:Y).
1996 Total Home Sales Turnover Rate in Years
Source: Marketing Research department, Chicago Title and Trust Co.
Total
Total Owned
Home Housing Turnover Rate in Years
Sales Units
(000's) (000's)
State 1996 1996 1980 1994 1995 1996
Alabama 93.4 1,076 17.4 11.9 12.0 11.5
Alaska 9.2 119 8.4 12.9 13.3 12.9
Arizona 176.0 1,119 8.8 6.2 6.6 6.4
Arkansas 66.8 676 11.5 11.1 10.6 10.1
California 581.0 6,619 8.6 11.5 13.2 11.4
Colorado 115.9 1,030 8.2 8.9 9.4 8.9
Connecticut 57.4 835 19.8 14.2 13.9 14.5
Delaware 15.2 196 13.5 12.3 13.1 12.9
Florida 323.2 4,085 9.2 12.0 13.1 12.6
Georgia 158.3 1,860 13.0 12.0 11.9 11.7
Hawaii 12.8 221 13.9 11.9 15.6 17.3
Idaho 31.9 317 13.9 9.4 9.9 9.9
Illinois 227.2 2,981 17.3 12.7 13.6 13.1
Indiana 134.6 1,652 15.7 11.9 12.6 12.3
Iowa 64.0 852 14.0 13.3 14.4 13.3
Kansas 68.0 732 10.5 11.0 11.5 10.8
Kentucky 94.6 1,045 18.1 10.6 11.3 11.0
Louisiana 65.2 1,115 14.8 17.4 17.3 17.1
Maine 18.0 348 17.3 20.1 20.2 19.3
Maryland 85.0 1,249 12.6 12.4 14.8 14.7
Massachusetts 97.5 1,396 19.7 15.5 16.7 14.3
Michigan 225.7 3,019 13.8 12.9 13.8 13.4
Minnesota 110.4 1,317 12.7 12.1 13.0 11.9
Mississippi 53.3 708 18.3 13.6 13.7 13.3
Missouri 134.0 1,477 15.2 10.9 11.4 11.0
Montana 17.3 235 13.5 13.0 14.0 13.6
Nebraska 26.0 458 14.5 15.7 17.2 17.6
Nevada 59.9 415 9.3 6.5 7.1 6.9
New Hampshire 21.8 304 14.2 14.9 15.8 13.9
New Jersey 169.6 1,940 16.0 11.2 12.2 11.4
New Mexico 36.6 376 10.7 9.0 9.8 10.3
New York 186.6 3,494 21.8 19.5 20.4 18.7
North Carolina 273.5 2,010 13.4 7.4 7.9 7.4
North Dakota 13.4 186 15.0 14.4 15.2 13.9
Ohio 228.0 3,058 16.1 13.2 14.1 13.4
Oklahoma 70.7 955 9.5 13.7 14.3 13.5
Oregon 78.0 821 10.4 10.5 11.0 10.5
Pennsylvania 255.2 3,436 19.4 13.1 13.6 13.5
Rhode Island 15.3 235 24.6 16.7 16.8 15.3
South Carolina 99.0 1,021 13.8 11.2 11.3 10.3
South Dakota 17.1 201 12.9 12.3 12.8 11.7
Tennessee 176.2 1,458 16.0 8.8 8.8 8.3
Texas 368.3 4,329 9.8 12.6 12.8 11.8
Utah 54.2 478 10.7 8.4 9.3 8.8
Vermont 10.6 162 13.8 12.7 14.4 15.3
Virginia 132.1 1,719 9.8 11.6 13.1 13.0
Washington 132.6 1,421 12.0 10.2 11.4 10.7
West Virginia 47.5 557 15.5 11.4 11.6 11.7
Wisconsin 119.8 1,398 15.8 11.8 12.1 11.7
Wyoming 12.1 138 11.4 11.0 11.4 11.4
United States 5,640.2 66,849 12.9 11.8 12.6 11.9
Residential Turnover
Rates 1972 - 1996
Turnover Rate
Years in years
1996 11.9
1995 12.6
1994 11.8
1993 12.0
1992 13.4
1991 14.3
1990 13.3
1989 12.0
1988 11.5
1987 11.6
1986 11.2
1985 12.3
1984 13.2
1983 13.5
1982 19.2
1981 16.1
1980 12.9
1979 9.7
1978 8.9
1977 9.3
1976 11.1
1975 13.3
1974 13.7
1973 12.9
1972 11.1
Source: Marketing Research department, Chicago Title and Trust Co.
Since CT&T began tracking turnover rates in 1972, nine years have seen
national turnover rates below the 1996 rate of 11.9 years, while 16 years have
experienced slower rates than in 1996. 12.5 years is the average national
turnover rate for the last 25 years.
SOURCE Chicago Title and Trust Co.
 back to top
CONTACT:
Stephen Flanagan, 312-223-2959, or Amy
Beckman Sekili, 312-223-2459, or for technical information, John
Pfister, 312-223-2310, all of Chicago Title and Trust Co.
|
