‘Never sell’ boomers could add to inventory strain
Over a third of existing homeowners — and 43% of those over 60 — say they don’t plan to ever sell their home, a Redfin survey found.
Key points:
- More than 60% of homeowners surveyed planned to stay in their home for at least 10 more years — or forever.
- Baby boomers, whose homes are more likely to be paid off, were most inclined to hold onto their houses indefinitely.
- Many of those surveyed simply had no reason to move, and others noted that buying a new home would be too expensive.
As the lopsided housing market enters another year, a growing number of homeowners are planning to stay put — in many cases, indefinitely.
A new report from Redfin found that just over a third of homeowners surveyed don't plan to ever sell their home. Among baby boomers, that figure was significantly higher at 43%, a trend seen in other recent reports. Last month, a survey by Bright MLS also found that homeowners over age 60 are staying put, with nearly 60% saying they had lived in their home for more than two decades and are no longer paying a mortgage, giving them little incentive to sell.
The majority of homeowners in Redfin's survey do plan to sell — eventually. But only 15% expect to list in the next five years, while 27% said they won't sell for at least 10 years. That's consistent with the most recent census data, which shows that the typical homeowner is staying in their home longer: Roughly 12 years in 2023, versus 6.5 years in 2005.
No motivation to move
Homeowners who don't plan to sell anytime soon cited both financial and personal reasons. The largest share — nearly 40% — said they are keeping their home because the mortgage is completely or mostly paid off. Another 37% said they simply like their home and have no reason to move.
While high home prices were a factor for 30% of respondents, just 18% pointed to their current low mortgage rate as a key reason to stay, suggesting that the mortgage rate lock-in effect may be waning, but affordability remains a key concern.
"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," Redfin Premier agent Marije Kruythoff said in the report. "The people who are selling are doing so because they need to."
Where will housing inventory come from?
With such a large share of homeowners planning to stay in their homes for the next 10+ years, that could mean more trouble for an already strained housing market.
The number of listings in many markets remains below pre-pandemic levels, and a separate Redfin report found that only 25 out of every 1,000 U.S. homes changed hands in the first eight months of 2024 — the lowest turnover rate in at least 30 years — and listings dropped to the lowest level in a decade. While existing home sales saw a year-end rally, total sales for the year will likely come in well below the average pace seen over the past decade.
But it's not all bad news. Listings — and inventory — have been rising, and at the end of 2024, housing supply hit a four-year high (it's worth noting, however, that more than half of those listings had been sitting on the market for 60+ days). And according to Realtor.com's monthly market report for December, active listings were up 22% year-over-year and inventory has increased by 17.5%.