1 in 3 US Homeowners Unwilling to Sell Their Homes: Survey

A 'For Sale' sign in front of a home in Arlington, Va., on Aug. 22, 2023. Andrew Caballero-Reynolds/AFP via Getty Images

Many American homeowners are unwilling to sell their properties, with high mortgage rates and expensive houses being some of the key reasons, according to a recent survey by real estate brokerage Redfin.

“More than one-third (34 percent) of U.S. homeowners say they’ll never sell their home, and another 27 percent say they wouldn’t consider selling for at least 10 years,” said the Jan. 7 report from the company. “Roughly one-quarter (24 percent) of homebuyers plan to sell in five to 10 years, while just 8 percent plan to sell in three to five years, and 7 percent within the next three years.”

The most common reason cited by respondents is that they have almost or completely paid off debts on the property. When the mortgage is paid off, a homeowner only has to account for recurring payments such as homeowner’s association fees and property taxes, incentivizing them to stay put.

Another major reason not to sell was that many owners “simply like their home and have no reason to move.”

Almost a third of the respondents cited affordability issues for not selling. Many find current home prices to be on the high end, while others are hesitant to give up their existing low mortgage rates for higher ones. Since the pandemic, home prices have appreciated by almost 40 percent, while interest rates have jumped from less than 4 percent to nearly 7 percent.

The brokerage said homeowner hesitancy to sell is a key reason that new listings are below the pre-pandemic average in many parts of the United States.

“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.”

According to a report by real estate marketplace Zillow, total for-sale inventory was roughly 26 percent below the 2018–19 levels in November 2024.

The metric “should continue to improve next year [2025], but again, progress will depend heavily on what happens with rates,” the report said.

Elevated Mortgage Rates

The average weekly rate of a 30-year fixed-rate mortgage was at 6.91 percent for the week ending Jan. 2, up from nearly 6 percent in late September 2024. The rate hasn’t fallen below the 6 percent mark for more than two years, creating affordability woes for prospective homebuyers.

The current rate is the highest in almost six months, said Sam Khater, chief economist at Freddie Mac.

“Compared to this time last year, rates are elevated and the market’s affordability headwinds persist,” he said.

The Federal Reserve cut its benchmark interest rates by 25 basis points last month, to a range of 4.25–4.50 percent. However, the central bank said it expects fewer cuts this year, citing inflation concerns.

Fewer interest rate cuts could result in mortgage rates remaining elevated for an extended time, worsening the affordability situation.

A recent survey by Fannie Mae found that housing sentiment ended 2024 on a high. Mark Palim, chief economist at the company, attributed this “in part to respondents’ ongoing expectations that mortgage rates will decline.”

“However, just over one in five consumers believes it is a ‘good time’ to buy a home—although that share has risen over the last year, too, after reaching an all-time low of 14 percent in fourth quarter 2023,” he said.

“While respondents remain discouraged by the pandemic-era run-up in home prices and mortgage rates, the upward trend in homebuying sentiment in 2024 may reflect a slow acclimatization to the generally less-affordable market conditions.”

Fannie Mae is predicting a modest decline in mortgage rates and a slowdown in home price growth this year.