Why Are Homeowners Staying Put?

Why Are Homeowners Staying Put? A Look at Today’s Housing Market

Thinking about selling your home but hesitant to give up your 3% mortgage rate? You’re not alone — and the data backs up what you’re feeling. Fewer homes are hitting the market, and the numbers tell a compelling story. According to ATTOM, the average U.S. homeowner in 2025 has been in their home for 8.6 years, the longest tenure on record since 2000 (when it was just 4.2 years). This trend is playing out across nearly every major metro area.

The Mortgage “Lock-In” Effect - Interest rates are the primary culprit.

Millions of homeowners refinanced between 2020 and 2022 at historically low rates between 2.5% and 3.5%. Replacing that loan today at 6–7% would mean a significantly higher monthly payment — sometimes hundreds or even thousands of dollars more. This financial friction, often called the “lock-in effect,” makes selling feel less appealing for many homeowners.

The National Association of Realtors has tracked rising homeowner tenure since the 2008 housing crisis, as tighter lending standards and more conservative ownership patterns replaced the short-term speculation that characterized the previous era.

Structural Supply Constraints

Beyond interest rates, several other factors are contributing to longer tenure: Baby Boomers aging in place (many of them mortgage-free and comfortable in homes they’ve owned for decades), Millennials who bought later in life and were fortunate enough to lock in low rates, and a persistent construction deficit that’s been building for years.

Freddie Mac estimates the U.S. housing market remains undersupplied by millions of units, which continues to keep inventory tight nationwide.

Signs of Gradual Normalization

That said, there are early signs the market is recalibrating. Redfin reports that roughly 62% of buyers recently purchased below the original list price — the highest share since 2019. Realtor.com indicates that homeowners with mortgage rates above 6% now outnumber those below 3% for the first time since 2020.

As ultra-low-rate mortgages naturally cycle out over time, the lock-in effect should gradually ease. 

Northern Nevada: Local Trends and Unique Advantages

Local trends mirror what we’re seeing nationally, but Northern Nevada has some distinct characteristics worth noting.

Data from the Reno/Sparks Association of REALTORS® shows that inventory remains below long-term norms, though it’s improved considerably from pandemic lows. Days on market have normalized to more typical levels, and median prices are holding relatively stable year-over-year, despite lower transaction volume.

What makes Northern Nevada different? The region continues to benefit from steady in-migration drawn by Nevada’s tax advantages — no state income tax is a powerful incentive for remote workers and retirees alike. Industrial expansion at the Tahoe-Reno Industrial Center, anchored by employers like Tesla, Panasonic, and Google, keeps employment strong and demand steady. Add in proximity to Lake Tahoe and year-round outdoor recreation, and you have a compelling value proposition.

Meanwhile, geographic constraints — mountains, federal land, and limited developable areas — naturally restrict new supply, which supports long-term value stability.

 Bottom Line

The housing market isn’t stalled. It’s recalibrating. And that’s actually good news.

Extended homeowner tenure reflects real structural and financial factors, not market weakness. This isn’t a crisis. Inventory growth is likely to be gradual rather than sudden, and that’s a healthy sign for long-term stability.

For Buyers: Your Advantages

You have more negotiating leverage than you had two years ago. Sellers are more realistic. Inventory has improved. This is your moment.

For Sellers: Success Strategies

Disciplined pricing and thoughtful preparation are more essential than ever. The days of overpricing and getting away with it are over. Homes that are priced right and show well are still moving. Strategy matters.

 If you’re thinking about making a move, or simply want to better understand where things stand, we’re always happy to be a sounding board. A complimentary market analysis can help put today’s numbers into context—no pressure, just clear, honest information. Sometimes that clarity is all you need to feel comfortable with whatever comes next.

 Nanette, a fourth-generation Nevadan, brings decades of experience as a licensed real estate and business broker—one of the few to hold this designation—along with credentials as a mediator and arbitrator, and deep expertise in market analysis, negotiation, and professional standards across Northern Nevada.

 Disclosure

This article is provided for general informational and educational purposes only and is not intended as legal, financial, or real estate advice. Real estate market conditions can change rapidly and may vary significantly by neighborhood, property type, price range, and individual circumstances.

All market data referenced herein is based on publicly available sources, third-party reports, and industry analyses believed to be reliable at the time of publication, but accuracy is not guaranteed. Figures such as median prices, inventory levels, days on market, and interest rates are subject to change without notice.

Nothing contained in this article should be relied upon as a guarantee of future market performance, property value, or investment outcome. Buyers and sellers are encouraged to consult with a licensed Nevada real estate professional, lender, attorney, or tax advisor to discuss their specific situation. Brokerage relationships are only created through a written agreement in compliance with Nevada Revised Statutes (NRS) and Nevada Real Estate Division (NRED) regulations

Real Estate In Nevada LLCis a Nevada-licensed real estate brokerage. This content does not constitute an offer to buy or sell real estate, nor does it establish a brokerage relationship.