The United States home turnover so far in 2025 has declined to the lowest rate in almost 30 years and is down almost 30% from its 10-year average from 2012 to 2022. The low turnover rate means people are staying in their homes longer, which is not good for the economy, as home building and sales are a huge driver of national growth. So, what are the issues?

The Job Market

Within the past year, the job market has been slowing, and the effects of AI are exacerbating the problem. The U.S. only added 22,000 jobs in July — far below the estimate of 80,000 jobs, and even below June’s figure of 79,000. Obviously, the lack of new jobs means fewer opportunities for employment mobility, and for some, the risk of job loss altogether.

High Interest Rates

While rates have declined recently (they’re at the lowest levels in over a year), they remain historically high. Over the prior two years, rates were almost twice as high as they were in 2021, and many homeowners are sitting on mortgages with interest rates between 3% and 4%. Understandably, they’re reluctant to sell and trade that rate for something higher, which contributes to the frozen market.

Extremely High Home Prices

Median home prices nationwide are at a record high of $415,000 for an existing home—an increase of more than 50% since 2019. This has put homeownership out of reach for many Americans, especially younger buyers just entering the market.

The Changing American Dream

All of this has put a severe crimp on the American Dream of homeownership. While the slowing job market is a recent development, the effects of several years of high interest rates and soaring home prices are really being felt. The days of buying a home at a young age are gone — at least for now.

According to the National Association of Realtors, the average age of a first-time homebuyer is now an astonishing 40 years old. Just four years ago, it was 33. A survey by Empower, reported by Fortune magazine, found that Americans believe they should be able to buy their first home by the age of 30. Ironically, back in 1981, the average age was 29. The result is clear: the longer people wait to buy their first home, the longer it takes to build equity or upgrade to a larger home later in life.

Signs of Hope: Improving Affordability

It’s not all bad news, though. Housing affordability continues to improve thanks to wage growth and moderating home prices in recent months. Affordability is now at the same level as it was in September 2024 and has improved by 10% compared to its lowest point in late 2023. In fact, 39 of the top 50 markets are seeing better affordability.

It’s a classic case of supply and demand. Areas with increased housing inventory are becoming more affordable, while those with limited supply continue to struggle. While it may take years for the market to return to balance, the signs of gradual recovery are encouraging for both buyers and movers alike.

Planning a Long-Distance Move? We’re Here to Help

At O’Brien’s Moving & Storage, we understand how shifts in the housing market can impact your relocation plans. Whether you’re moving to a more affordable state, relocating for work, or simply ready for a change, our long-distance moving experts are here to make your transition smooth and stress-free.

  • Trusted interstate and cross-country moving services
  • Comprehensive packing, loading, and delivery solutions
  • Secure and reliable transportation for your belongings
  • Experienced in coordinating out-of-state relocations
  • Personalized moving plans tailored to your schedule and destination

As an Allied Van Lines agent, we’ve helped thousands of families and professionals relocate safely across the U.S. If you’re ready to make a long-distance move, trust our experienced team to get you where you need to go — efficiently and with care.