Why Many Homeowners Say They’ll Never Sell

HOUSTON – (By Dale King, Realty News Report) — Most real estate agencies have a stash of “For Sale” signs stored somewhere in a convenient location.

But there could be a big demand for yard signs that say, “Never Going to Sell.”

A new survey commissioned by real estate brokerage Redfin and conducted by Ipsos indicates many homeowners have no intention to sell – ever.

The just-released Redfin analysis queried a total of 1,802 U.S. residents aged 18-65 and found that more than half of those who responded showed little or no interest in sticking a “For Sale” sign on their front lawn now or in the coming decade.

Specifically, the survey found that more than a third (34 percent) of American homeowners said they would never sell their home, and another 27 percent stated they wouldn’t even consider bidding farewell to the family homestead for at least a decade.

Roughly one-quarter (24 percent) of homebuyers said they plan to sell sometime between five to 10 years down the road while just 8 percent said they didn’t intend to start searching for new digs for three to five years.

A scant 7 percent went on record and admitted they would probably put their residence up for sale within the next three years.

Broken down by generation, the survey said older homeowners are more likely than their younger counterparts to hang onto their current domicile. More than two of every five (43 percent) Baby Boomers who own their residences said they’ll never sell, compared to 34 percent of Gen X owners and 28 percent of millennial/Gen Z house holders.

Redfin’s research says the hefty percentage of homeowner/occupants who say they’ll never sell is one reason why new listings are running below pre-pandemic levels in much of the country, though listings have begun to tick up in recent months.

Another survey conducted by Redfin found that just 25 of every 1,000 U.S. homes changed hands during the first eight months of 2024, the lowest turnover rate in decades.

Homeowners are staying put because their home is paid off — or they just don’t want to move

Nearly two in five (38.6 percent) of homeowners who don’t plan to sell anytime soon say it’s because their home is almost or completely paid off, making that response the most common explanation of their opinion not to take the home sale route.

Homeowners who have paid off their mortgage are motivated to stay put because it means they own their home free and clear and get to live there while paying only for things like property taxes and HOA (homeowner association) fees, if the latter even apply. Almost as many respondents (36.7 percent) said they’re not planning to sell because they simply like their home and have no reason to move.

Affordability is another reason – a major one, though – that helps explain why homeowners are hesitant to sell. Nearly one-third (30 percent) of respondents said they’re staying in their current home because today’s home prices are too high, and 18 percent don’t want to give up their low mortgage rate. This question was posed to respondents who have owned their home for at least six years and have no intention of selling within the next five years.

Those who responded to the Redfin survey came up with several other reasons for hanging onto their residences:

Children and family still live at home, 16.1 percent.
Don’t want to pay high HOA fees, 7.9 percent.
Insurance would be too expensive where I would want to live, 4.5 percent.
I gave money to my children and other family members for their own homes, and I can’t afford to move, .4 percent.

Redfin’s report says housing costs have risen significantly since before the COVID pandemic. Home prices are up roughly 40 percent since then — and the weekly average mortgage rate is 6.91 percent, up from just under 4 percent in 2019. A recent Redfin analysis found that more than 85 percent of U.S. homeowners with mortgages have an interest rate below 6 percent.

The Redfin-commissioned survey was conducted by Ipsos in September 2024. The resulting report focused on the 471 homeowners who answered the question: “When would you consider selling your current home?” and the 267 homeowners who answered the question: “You mentioned you have lived in your house for several years and do not plan on selling soon. Why do you intend to stay in your current home”?

For the first question, 127 Baby Boomers (aged 60-65), 203 Gen Xers (aged 44-59) and 141 Millennial/Gen Zers (aged 18-43) responded.

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