Home Turnover Rate Falls to 30-Year Low as Market Cools

After several years of intense activity, the U.S. housing market continues to move at a slower pace. Following the record-breaking demand and price growth of the pandemic years, rising mortgage rates have cooled the market and changed buyer and seller behavior.

Today, affordability challenges remain a key factor holding back both sides of the market. Sellers are hesitant because many are locked into ultra-low mortgage rates they secured before rates surged. Buyers, on the other hand, are cautious due to still-elevated home prices and borrowing costs. The result is a market where fewer homes are being listed — and fewer are changing hands.

Turnover Rate Nears 30-Year Low

A new national analysis found that the home turnover rate — the share of existing homes that have sold — has dropped to its lowest level in nearly three decades. So far in 2025, only 28 of every 1,000 homes have sold, roughly matching last year’s pace but far below the pandemic-era peak of 44 homes per 1,000 in 2021.

This significant decline highlights how higher mortgage rates and limited affordability are restricting movement in the housing market. Homeowners with 3% mortgages are staying put, while many buyers are waiting for rates to ease before reentering the market.

Market Activity Varies by Region

Of course, real estate is always local — and turnover rates tell a mixed story across the country. In Virginia Beach, West Palm Beach, Tampa, Indianapolis, and Atlanta, the turnover rate is more than three times higher than in major coastal markets like New York and Los Angeles.

These regional differences reflect a combination of job growth, migration trends, affordability levels, and lifestyle preferences, all of which continue to influence where Americans are buying and selling homes.

Looking Ahead

While national home sales remain sluggish, growing inventory and stabilizing rates could help boost movement heading into 2026. For now, the market continues to balance out after years of volatility, with buyers and sellers both taking a more measured approach.

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