Americans are moving at record-low rates, with only 7.8% relocating in 2023, the lowest since 1948. Families are stuck in homes that are too small or no longer suitable due to high mortgage rates, limited inventory, and skyrocketing prices. Those who have low-rate mortgages are reluctant to sell.
Workers are less likely to switch jobs or relocate for work than in previous decades. Recent grads face long, difficult job searches, often turning down offers due to low pay or lack of relocation support. Many are choosing to stay local, even if it means settling for less.
Employees with low mortgage rates, stock options, or bonus plans are staying put to avoid losing financial perks. Dual-income households and family obligations further reduce mobility.
No one with a sub 5% mortgage is selling and that is a good chunk of the US housing market that is off the market. So everyone has to fight over the remaining supply driving prices up. It used to be that empty nesters would downsize once the kids are gone but they’re not gonna budge now if they have to take on 7% rates.
On top of that, corps like Blackrock are vacuuming up available housing as well.
never underestimate americans making terrible financial moves. Just had a neighbor who bought a sub-3% house 4 years ago, move one town over to get into a different school district last month lol.
omfg. good point and magnificent example.
context: last I checked, 20% of 30-year fixed are sub 3% currently.
in 5 years, it will not surprise me, but it will embarrass me how far that 20% comes down.
For the record, new homes are built with such shoddy craftsmanship, you should not be buying in this market. They’ve cut every corner they possibly can while trying to sell you on a 5-7% mortgage at half a mill or more.