T
he US housing market is experiencing its lowest turnover rate in 30 years, with only 25 homes changing ownership out of every 1,000 in the first eight months of 2024. This represents a significant decline from pre-pandemic levels and is largely attributed to high mortgage rates, rising prices, and limited supply.

    According to Redfin's analysis, home sales have decreased by 37.5% compared to the pandemic buying surge in 2021 and 31% fewer than in 2019. Several factors are contributing to this trend, including a "lock-in effect" where homeowners are hesitant to sell due to low mortgage rates, rising prices, and limited supply.

    Economic uncertainty and new real estate agent fee rules are also adding to the hesitancy among buyers and sellers. Redfin Senior Economist Elijah de la Campa notes that while mortgage rates have fallen since their peak in 2024, the number of homes changing hands has not increased significantly.

    The rate of homes being listed for sale has also reached its lowest level since at least 2012, with only 32 out of every 1,000 homes listed in the first eight months of 2024. Suburban and rural areas are experiencing slightly higher turnover rates than urban areas, but all regions have seen a decline in home sales compared to pre-pandemic levels.

    Some cities, such as Phoenix, Newark, NJ, Nashville, TN, and Tampa, FL, have recorded relatively high turnover rates due to their affordability and appeal. However, many other cities, particularly in California, are experiencing low turnover rates due to factors such as tax laws and limited supply.