Why Fewer Homes Are Hitting the Market

For years, people expected that as homeowners got older, they’d start selling their homes, either to downsize or move somewhere more convenient. That hasn’t really happened the way experts thought it would. Instead, a lot of homeowners are staying put, keeping their homes off the market and making it even harder for buyers to find something available.

So why aren’t people selling? One big reason is mortgage rates. A lot of homeowners locked in ultra-low rates years ago, and selling now would mean trading that for a much higher payment. On top of that, many people are simply comfortable where they are. Moving is a hassle, and unless they have a strong reason to leave, many choose to stay. That means fewer homes are being listed, especially in suburban and rural areas where long-term homeowners tend to live.

This creates a problem for buyers. Less inventory means more competition—and in many areas, prices are staying high because there just aren’t enough homes to go around. Even when homes do hit the market, they may not be in locations where younger buyers want to live, which means certain areas will stay in high demand while others see little change.

Another thing to consider is what happens when these homes eventually do change hands. Instead of being listed for sale, many will be passed down to family members. Some of these homes will go up for sale, but plenty will stay in families, meaning they won’t help ease the housing shortage in any significant way.

So what does all this mean if you’re looking to buy? The housing crunch isn’t going away anytime soon. Buyers should be prepared for continued competition in high-demand areas, and prices may not drop as much as some had hoped. That said, opportunities are still out there—but you may need to be flexible about location or the type of home you’re willing to consider.