Rising costs keep homeowners in place

One in three homeowners say they’ll never sell their homes

Rising costs keep homeowners in place

A significant portion of US homeowners plan to stay put indefinitely, according to a recent survey commissioned by real estate brokerage Redfin. The findings revealed that 34% of homeowners say they’ll never sell their homes, while another 27% won’t consider selling for at least a decade. The survey highlights affordability challenges as a key factor influencing these decisions.

Generational trends emerged in the data, with Baby Boomers (43%) more likely than Gen X (34%) or millennial/Gen Z homeowners (28%) to say they’ll never sell. Overall, just 25 of every 1,000 US homes changed hands in the first eight months of 2024, marking the lowest turnover rate in decades, according to Redfin’s analysis.

Reasons for staying put

The survey, conducted by Ipsos in September 2024 among 1,802 US residents, found that financial stability and preference were top motivators for staying put. Of those who don’t plan to sell soon, 39% cited a nearly or fully paid-off home as their reason. These homeowners enjoy minimal housing expenses, limited to property taxes and maintenance costs. Another 37% said they simply like their homes and see no need to move.

Affordability concerns also play a significant role. Nearly one-third (30%) of respondents said rising home prices are preventing them from selling, while 18% don’t want to forfeit their current low mortgage rates. Housing costs have surged 40% since the pandemic began, with the average mortgage rate rising from under 4% in 2019 to 6.91% as of late 2024. Notably, over 85% of homeowners with mortgages have an interest rate below 6%.

“Just-because” moves decline

High housing costs have deterred casual relocations. “The just-because movers—those who just want a bigger or nicer house—are staying put, mostly because it’s so expensive to buy a new house,” said Marije Kruythoff, a Redfin Premier agent in Los Angeles. “The people who are selling are doing so because they need to. Either they’re relocating to a different part of the country, or they’re moving due to a major life event like having a baby or taking a new job on the opposite side of the city.”

As affordability challenges persist, the trend of homeowners opting to stay put may continue to impact inventory levels and market dynamics in the years ahead.

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