San Antonio, TX, November 23, 2025
The U.S. housing market continues to struggle, with home turnover rates reaching a 30-year low as only 28 out of every 1,000 homes changed hands in 2025. Rising mortgage rates, increasing home prices, and a lack of inventory are contributing to this stagnation, making it difficult for buyers and sellers alike. The data indicates a decrease in home sales and highlights significant regional variations in turnover rates, revealing a cautious market where transactions are limited and the outlook remains uncertain.
San Antonio, TX
Stagnation in the Housing Market: US Turnover Rates Hit 30-Year Low
The housing market in the United States continues to show signs of stagnation with home turnover rates plummeting to a 30-year low. In 2025, only 28 out of every 1,000 homes changed hands, signaling a significant persistence in the market freeze that has been observed since the previous year. This downturn is a reflection of various economic factors that continue to challenge the prospects of home buyers and sellers alike.
Decline in Home Sales
Recent data indicates that home sales have sharply declined over the last few years. In 2024, existing home sales were recorded at 4.06 million, marking a 0.7% decrease from the previous year and the weakest levels since 1995. This contraction has been primarily driven by persistently high mortgage rates, escalating home prices, and a dearth of available properties. The median home price escalated to an all-time high of $407,500 in 2024, which has further put off potential homebuyers from making a purchase.
Factors Contributing to Low Turnover Rates
Several interrelated factors are contributing to the low turnover rates within the housing market:
- High Mortgage Rates: Elevated mortgage rates have significantly increased the cost for buyers to finance their home purchases, resulting in decreased demand and fewer transactions in the market.
- Rising Home Prices: The record-high prices have made homeownership increasingly unaffordable, especially for first-time buyers who are struggling to find suitable housing options.
- Limited Housing Inventory: The tight inventory of homes available for sale has intensified competition among prospective buyers, leading to inflated prices and ultimately a reduction in the number of homes changing hands.
Regional Variations
Housing turnover rates differ significantly across the country. New York City has recorded the lowest turnover rate among major metropolitan areas, with just 10.3 out of every 1,000 homes changing hands. In contrast, Virginia Beach holds the highest turnover rate at 35.2 per 1,000 homes. California cities, including Los Angeles and San Francisco, have seen similarly low turnover rates, partly influenced by state tax policies such as Proposition 13, which encourage homeowners to remain in their properties longer.
Implications for the Housing Market
The persistently low turnover rates imply a continued freeze in the housing market, where both buyers and sellers are exercising caution. The prevailing conditions suggest that this stagnation may persist, with ongoing affordability challenges and economic uncertainties creating a hostile environment for real estate transactions. The limited supply of homes in conjunction with high prices indicates a likelihood of continued sluggishness in the housing market for the foreseeable future.
Conclusion
The current state of the U.S. housing market is marked by the lowest turnover rates seen in decades, largely due to high mortgage rates, rising home prices, and limited inventory. These factors contribute to a market environment characterized by reluctance among both buyers and sellers to engage in transactions. The overall outlook remains cloudy, with projections suggesting low turnover rates will continue in the coming years.
FAQ
What is the current housing turnover rate in the U.S.?
The current housing turnover rate in the U.S. is 2.8%, with only 28 out of every 1,000 homes changing hands in 2025.
What factors are contributing to the low turnover rates?
High mortgage rates, rising home prices, and limited housing inventory are the primary factors contributing to the low turnover rates in the housing market.
Which regions are experiencing the lowest housing turnover rates?
New York City recorded the lowest turnover rate among major metropolitan areas, with only 10.3 out of every 1,000 homes changing hands. California cities, including Los Angeles and San Francisco, also reported low turnover rates.
How does the current turnover rate compare to previous years?
The current turnover rate of 2.8% is significantly lower than in previous years, including 2024, when the rate was 2.9%, and 2019, when it was 3.4%.
What is the outlook for the housing market?
The outlook for the housing market remains uncertain, with expectations of continued low turnover rates in the coming years due to ongoing affordability challenges and economic uncertainties.
Key Features of the U.S. Housing Market’s Current State
| Feature | Details |
|---|---|
| Current Housing Turnover Rate | 2.8% (28 out of every 1,000 homes changed hands in 2025) |
| Factors Contributing to Low Turnover | High mortgage rates, rising home prices, limited housing inventory |
| Regions with Lowest Turnover Rates | New York City (10.3 per 1,000 homes), Los Angeles, San Francisco |
| Comparison to Previous Years | Lower than 2.9% in 2024 and 3.4% in 2019 |
| Market Outlook | Continued low turnover rates expected due to ongoing affordability challenges and economic uncertainties |
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