More Than One-Third of Homeowners Say They’ll Never Sell Their Homes—Here’s Why
The U.S. housing market has seen unprecedented shifts over the last decade, with rising prices and increasing mortgage rates making it more challenging for homeowners to make a move. A recent survey by Redfin reveals that over one-third of homeowners (34%) say they will never sell their homes, creating a significant impact on the real estate landscape. Another 27% have no plans to sell for at least 10 years. What’s driving this trend? Let’s dive into the numbers and insights to uncover the reasons behind this growing reluctance to sell.
Generational Divide: Who’s Staying Put?
The survey results highlight clear generational differences in attitudes toward selling homes. Baby boomers (aged 60-65) are leading the pack, with 43% stating they’ll never sell. Comparatively, 34% of Gen X homeowners (aged 44-59) and 28% of millennial/Gen Z homeowners (aged 18-43) express the same sentiment. These statistics underline the fact that older homeowners are more likely to stay in their current homes, influenced by factors like financial stability and lifestyle preferences.
The survey, conducted by Ipsos in September 2024, collected data from 1,802 U.S. residents aged 18-65. Of these, 471 homeowners answered questions about their plans for selling, while 267 elaborated on why they’re choosing to stay put. This generational snapshot paints a vivid picture of how age impacts housing decisions.
Why Are Homeowners Reluctant to Sell?
Several key factors are driving homeowners to hold onto their properties. Let’s break them down:
1. Mortgage Freedom
Nearly 39% of homeowners who don’t plan to sell cite their paid-off or nearly paid-off mortgages as the primary reason for staying put. Owning a home free and clear significantly reduces monthly expenses, leaving only property taxes, homeowners association (HOA) fees, and maintenance costs to consider.
2. Affection for Their Homes
For 37% of respondents, the emotional attachment to their homes plays a pivotal role. They love where they live and see no compelling reason to move. This factor resonates especially with long-time homeowners who have built memories and a sense of belonging in their communities.
3. Skyrocketing Housing Costs
Affordability remains a major obstacle. Home prices have surged by 40% since the pandemic began, while mortgage rates have climbed to an average of 6.91%, up from under 4% in 2019. Nearly 30% of respondents admitted they’re staying put because today’s housing costs are simply too high.
4. Low Mortgage Rates
Eighteen percent of homeowners mentioned their reluctance to forfeit historically low mortgage rates locked in during previous years. With over 85% of homeowners enjoying rates below 6%, moving to a new property with a higher interest rate seems financially unwise.
Housing Market Trends: The Bigger Picture
The reluctance to sell is contributing to historically low housing turnover rates. According to a Redfin analysis, only 25 out of every 1,000 U.S. homes changed hands in the first eight months of 2024—the lowest turnover rate in decades. While new listings have shown slight upticks recently, they remain well below pre-pandemic levels.
Insights from Industry Experts
“The just-because movers—those who simply want a bigger or nicer house—are holding off because it’s too expensive to upgrade,” says Marije Kruythoff, a Redfin Premier agent in Los Angeles. “People who are selling now usually have pressing reasons, like job relocations or major life changes.”
What This Means for Buyers and Sellers
Limited Inventory
The scarcity of new listings means buyers face a fiercely competitive market. For sellers, this creates an opportunity to command higher prices, but it also means finding a replacement home will likely be challenging and expensive.
Generational Shift
As younger generations gradually enter the housing market, they’ll face obstacles like high prices and limited inventory. Millennials and Gen Z buyers are already experiencing the strain of balancing homeownership dreams with financial realities.
Insights
Why are housing costs so high?
Housing costs are driven by factors such as limited inventory, high demand, and increased construction costs. Post-pandemic inflation and rising mortgage rates have also exacerbated affordability challenges.
Are there regional differences in home-selling trends?
Yes, urban areas and regions with high property values, like California and New York, often see lower turnover rates compared to more affordable suburban or rural locations.
How can first-time buyers navigate the current market?
First-time buyers should focus on financial preparedness, explore first-time buyer programs, and consider less competitive neighborhoods. Partnering with a knowledgeable real estate agent can also make a difference.
The U.S. housing market is navigating uncharted waters, with a significant portion of homeowners opting to stay put. This trend underscores the challenges posed by rising costs and low mortgage rates while highlighting the generational divide in housing decisions. Whether you’re a buyer, seller, or industry observer, understanding these dynamics is crucial for making informed decisions in today’s ever-evolving market.
