According to Redfin, Merely 1% of U.S. Residences Have Transferred Ownership
In the first half of 2023, the home turnover rate in the United States has reached its lowest point in at least a decade, driven by high mortgage rates that discourage homeowners from selling, according to a report by Redfin.
During this period, approximately 14 out of every 1,000 U.S. homes changed ownership, down from 19 in the same period in 2019, Redfin’s report on housing turnover since the pandemic revealed.
The report noted that California, particularly the San Francisco Bay Area, has the lowest housing availability of any state. In San Jose, only 6 out of every 1,000 homes changed hands this year. From 2019 to 2023, California’s housing turnover decreased by 30% in major metropolitan areas such as Oakland, San Diego, Los Angeles, Sacramento, and Anaheim. Similarly, in the Seattle area, there was a 37% drop in turnover from 2019, with only 11 out of every 1,000 homes changing owners in the past year.
“The rapid increase in mortgage rates has presented significant challenges for many Americans looking to purchase a home. It has limited inventory and made available homes too expensive,” remarked Taylor Marr, Deputy Chief Economist at Redfin.
On the other hand, Newark, New Jersey, had the highest turnover rate, with 24 out of every 1,000 homes changing hands. Nashville and Austin were close behind.
The analysis by Redfin considered turnover rates in the 50 most populous metropolitan divisions in the United States, based on data, county records, and the Department of Housing and Urban Development’s urbanization perceptions small area index.