Belief in ‘forever homes’ is dwindling, survey finds 

The psychology of American homeownership is growing further complicated amid shifting views on the feasibility of finding a "forever home," according to a recent Opendoor survey.

The housing market experienced a significant uptick in activity during the Covid-19 pandemic as economic and lifestyle factors, such as lower mortgage rates and the rise in remote work options, benefited first-time buyers. Five years later, however, many who bought during that time are now selling their homes as perspectives on homeownership have changed.

The idea of a 'forever home' is harder to grasp

The survey, conducted between Feb. 21 and March 6, found that 68% of people who sold or listed their first house in the past 12 months no longer think it's realistic to stay in the same home for life — even though most of them (81%) said they were parting ways with a home they thought they'd have forever at the time of purchase.

Instead, those sellers — especially millennials and Gen Zers — are focused on finding places to live that will meet their needs as their lifestyles and financial circumstances change, and they're willing to move sooner to make that happen.

A separate survey conducted by Bright MLS late last year found that nearly a third of homeowners who planned to sell in 2025 had lived in their home for less than five years, and most of those prospective sellers were in their 30s and 40s. That's in contrast to recent data indicating that the typical American homeowner stays in one place for about 12 years.

Despite high prices and inventory shortages — factors that could serve as anchors to a home — a significant share of millennial and Gen Z sellers said they will consider their next home to be a "smart investment" or "stepping stone," while older sellers are more likely to hold onto the idea of a "forever home," Opendoor found.

Fixing pandemic-era 'mistakes'

The vast majority of first-time buyers surveyed expressed regrets about their pandemic-era purchase, with 79% admitting they made errors when buying and 91% saying those mistakes "played a major role in their decision to sell." Gen Zers led the way, with 94% acknowledging homebuying mistakes, and millennials were close behind at 86% while baby boomers trailed at 48%.

Topping the list of pandemic-era mishaps for millennials were financial miscalculations, while lifestyle fit, too-soon purchases and the evaporation of remote work options weighed heavily for many Gen Zers. In terms of what ultimately prompted them to sell, 31% of both Gen Xers and baby boomers cited financial reasons, while significant life transitions and lifestyle changes were top factors for 3 in 10 millennials and Gen Zers.

First-time sellers willing to pay for less hassle

Many first-time sellers were surprised by the steps involved in selling a home. Three-quarters of those surveyed reported being "overwhelmed, anxious, or emotionally exhausted" by the process, prompting more than 65% to say they "would accept 20% less for their home" if they could skip out on pre-sale preparations including making repairs, staging homes for open houses and weeding through multiple offers with the knowledge that any could fall through. 

Millennials were most likely to sacrifice price to avoid stress, with 68% saying they'd take less for their home, followed closely by Gen Xers (68%) andGen Zers (66%). Just 4 in 10 baby boomers held that view, however.

This willingness among younger sellers to trade some amount of profit for convenience could be good news for iBuyers like Opendoor that purchase homes as-is, but bad news for agents who end up with smaller commissions if sale prices fall. As of February, the median home sales price in the U.S. was $414,500, according to the Census Bureau, meaning this group of first-time sellers would be open to accepting up to $82,900 less to avoid stress.