U.S. Home Turnover Rate Hits 30-Year Low/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Homeowners in the U.S. are moving less than at any point in nearly three decades, with home turnover rates at historic lows. Economic uncertainty, job market stagnation, and high mortgage rates are discouraging moves. Housing experts warn this trend may further stall economic growth.
Home Turnover Rate Quick Looks
- U.S. home turnover rate fell to its lowest since the 1990s.
- Only 28 out of every 1,000 homes changed hands in 2025.
- That’s a 30% drop from the average between 2012–2022.
- Redfin attributes this to a stagnating economy and high housing costs.
- Fewer people are relocating due to job immobility and high mortgage rates.
- Many homeowners are “locked in” with ultra-low mortgage rates from 2020–21.
- Job growth slowed sharply in late 2025, further reducing mobility.
- Home prices remain high, up 53% in six years despite rate hikes.
- Sales have picked up slightly due to recent rate dips but remain weak overall.
Deep Look
Americans Staying Put as Home Turnover Rate Drops to 30-Year Low
Americans are moving less than they have in nearly three decades, with the U.S. home turnover rate reaching its lowest level since at least the 1990s, according to a new analysis by Redfin. Between January and September 2025, just 28 out of every 1,000 homes changed hands—a stark indicator of how frozen the housing market has become during a prolonged slump.
This home turnover rate, calculated by dividing the number of homes sold by the total number of sellable existing homes, offers a clearer view of how long homeowners are staying put. And the numbers are striking: turnover in 2025 is down about 30% compared to average levels seen between 2012 and 2022.
“It’s not healthy for the economy that people are staying put,” said Redfin’s Chief Economist Daryl Fairweather. “If people are stuck, it’s reflective of how the economy is stuck.”
Traditionally, Americans move homes due to life events like job changes, starting families, or retirement. But the current market suggests those events are either happening less frequently or are no longer driving relocation due to affordability issues. For many, the idea of selling their current home and buying a new one at today’s higher mortgage rates is simply not feasible.
One key reason: mortgage rate lock-in. Millions of homeowners refinanced or purchased homes during 2020 and 2021 when interest rates hit historic lows. With rates now significantly higher, those homeowners are hesitant to give up their favorable financing. Selling would mean facing a dramatically larger monthly mortgage payment for a similar home.
This hesitancy to move is compounded by broader economic stagnation. The labor market, which has been showing signs of cooling throughout 2025, offers fewer incentives for relocation. Job mobility has slowed. According to the U.S. Labor Department, only 22,000 jobs were added in August—down from 79,000 in July and well below economist projections. The department’s figures for September were not released due to a government shutdown, but a private report from ADP showed a 32,000 job loss in the private sector for that month.
Meanwhile, several major employers, including Microsoft, Amazon, General Motors, and Target, have announced layoffs, further dampening economic optimism and housing mobility.
“We’re in a low-hire, low-fire labor market,” Fairweather added. “That goes hand in hand with people staying in their homes longer.”
The U.S. housing market, once red-hot during the pandemic, has been sluggish since 2022 when interest rates began climbing. After peaking in activity in early 2021, home sales fell sharply in 2022 and 2023. Last year saw the fewest previously occupied homes sold in nearly 30 years.
While there was a modest sales uptick last month—driven by a slight drop in mortgage rates—it was not enough to reverse the broader trend. Mortgage rates, although dipping, remain too high for most prospective buyers. Even with recent declines, borrowing costs are still above levels that most Americans find affordable, especially following the rapid home price appreciation over the last six years.
In fact, the median sale price of a previously owned U.S. home has soared 53% since 2019. That means today’s buyers face not just high borrowing costs but historically high home values, pricing many out of the market.
Though lower rates could spark some improvement in home turnover, the broader economic headwinds suggest mobility may remain constrained well into 2026. Until job growth rebounds, mortgage rates fall further, and affordability improves, most Americans are likely to stay put—further limiting economic fluidity and growth.
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