US Housing Turnover Hits Rock Bottom as Homeowners Fear Higher Mortgage Rates and Low Inventory

Only 1% of US homes changed hands in the first half of 2023, the lowest share in at least a decade, due to a combination of low inventory and high mortgage rates. The pandemic-induced frenzy of homebuying depleted supply, and current homeowners are reluctant to sell due to their low mortgage rates. The lack of affordable homes is also a challenge, with the typical home selling for about 40% more than before the pandemic. To boost turnover and affordability, experts suggest building more housing, reforming zoning regulations, and providing financial incentives for home sellers. Smaller urban homes are particularly hard to find, while California faces the most significant inventory challenges. On the other hand, homebuyers in Nashville, Austin, and Newark have an easier time finding homes.