H
omeowners who bought in the early 2020s are now motivated to move due to life events, even if it means giving up low mortgage rates. A recent report from Bright MLS suggests that younger homeowners who purchased during the pandemic are already looking to upgrade. According to a nationwide survey of over 1,500 homeowners, nearly one-third of those planning to sell their home in 2025 have lived there for less than five years, a stark contrast to the typical tenure of around 12 years.

    The rapid rise in home values during the housing boom has provided many pandemic-era buyers with significant equity, allowing them to move up even if it means trading in low-rate mortgages for today's higher rates. Lisa Sturtevant, chief economist at Bright MLS, notes that record-low mortgage rates during the pandemic incentivized buying and enabled homeowners to quickly accumulate equity as home prices soared.

    Homeowners in their 30s and 40s are driving the demand for sellers, with many hitting milestones such as marriage, starting a family, or making career moves. In contrast, older homeowners (60+) are less likely to sell, with only 6% planning to do so in 2025, citing downsizing as the primary motivator.

    The survey found that around 30% of homeowners in their 30s and 40s who plan to move have an interest rate below 4%, but life events often outweigh mortgage rates. With elevated mortgage rates expected to remain, these homeowners can use their equity to put a large down payment on a new home, minimizing the impact of higher rates. As Sturtevant notes, "life changes have been building up over the past few years, and some of these homeowners are getting to the breaking point where their existing housing becomes untenable."