Americans like to sell homes and move, but current owners look at today’s frustrated buyers and their low-interest rates and think, “I’m fine right here for now.”
NEW YORK – U.S. homeowners are sitting on the lowest mortgage rates in modern history as renters face steep inflation. The result: Both groups find “looking for a new home” discouraging.
“All of this is suggesting that America may be stuck in place,” says National Association of Realtors® Chief Economist Lawrence Yun.
With rents seeing unprecedented growth, tenants usually face smaller price increases keeping with their current lease rather than signing a new one, largely because landlords want to avoid the costs of finding new tenants and property turnover.
However, RealPage Chief Economist Jay Parsons says higher moving costs are not the only inhibiting factor – buildings with the most unfilled units are currently the most expensive ones.
Meanwhile, with 4 in 5 mortgage-holders having an interest rate under 5% and half with a 4% or lower rate, many cannot afford to move if current mortgage rates remain at higher levels. Moreover, the most prosperous regions also have the costliest housing, which discourages people from moving to places with better jobs and limits economic growth.
Source: New York Times (05/27/22) Badger, Emily
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