42% of Homeowners Say Prices or Affordability Keep Them Put

Forty-two percent of homeowners say home prices or affordability are keeping them in their current homes, according to a new Nationwide survey. Another 19 percent point to mortgage rates above their existing rate, while 7 percent cite limited housing inventory.

The result is a market with substantial pent-up interest but no guarantee that interest will become a transaction. Thirty-eight percent of surveyed homeowners would move under better market conditions. That share rises to 52 percent among urban homeowners and 64 percent among millennials. At the same time, 28 percent say they feel financially stuck.

For sellers, this is not simply a story about homeowners refusing to list. It is a warning that many prospective buyers are also current owners confronting the same affordability problem. Limited supply can support a well-positioned listing, but it does not give sellers unlimited pricing power.

Low inventory helps only when the asking price clears the affordability test

When owners stay put, fewer competing homes may reach the market. That can benefit sellers, particularly in neighborhoods where buyers have few close substitutes. But the survey also shows why pricing above the evidence can backfire: Buyers are measuring the new payment, not merely comparing one list price with another.

A homeowner trading an older mortgage for a higher-rate loan may need a meaningful reason to move. The next house might require more principal, more interest, higher insurance premiums and greater property taxes. A listing that appears only slightly overpriced to the seller can push the buyer’s monthly cost beyond an acceptable level.

The practical pricing strategy is to study active competition and recent pending activity alongside closed comparable sales. Closed sales show where the market has been, but active and pending listings reveal what today’s buyers are accepting or rejecting. Sellers should also watch days on market, price reductions and concessions within the most relevant price band.

Scarcity is most valuable at launch. A defensible initial price can create competition among the buyers who are ready to act. An aspirational price may instead produce a quiet first two weeks, followed by reductions that make buyers wonder whether the property or the seller has a problem.

Expect a longer decision process and more scrutiny before closing

The survey suggests many households want to move but are waiting for the financial equation to improve. Sellers should therefore distinguish between buyer traffic and buyer readiness. Showings, saves and online interest may not translate quickly into offers if purchasers still need to sell another home, qualify at a higher payment or resolve insurance concerns.

That can affect the timeline in several ways. Offers may include home-sale, financing or inspection contingencies. Buyers may request closing-cost assistance rather than a direct price reduction. Negotiations can also take longer as purchasers compare the cost of moving with the cost of remaining where they are.

Sellers who need a specific closing date should decide before listing which terms matter most. A slightly lower offer with verified financing, limited contingencies and a dependable closing schedule can be stronger than a higher offer carrying multiple ways to exit. Price is only one component of certainty.

The survey also found that 40 percent of owners did not originally expect their home to be permanent but now believe it will be. With 64 percent making or planning changes that support long-term occupancy, renovated homes may compete against owners’ improved alternatives to moving. Sellers should avoid assuming every update will earn back its full cost; the relevant question is whether an improvement removes a buyer objection or materially strengthens the home against nearby listings.

Repair history, insurance and operating costs now shape buyer leverage

Post-closing expenses are becoming central to purchase decisions. Among the 400 independent insurance agents surveyed, 44 percent said clients are most surprised by how quickly unexpected costs accumulate. Thirty-six percent identified homeowners insurance costs, while 34 percent cited frequent breakdowns and repairs.

Buyers also wish they had asked more about future work. Twenty percent of homeowners named repairs or upgrades likely within five years, and 17 percent named the age of the roof, HVAC, plumbing and electrical systems. Property taxes and utility costs followed at 16 percent. Sewer and drainage conditions, water damage, mold and foundation concerns were also on the list.

For a seller, incomplete information gives a cautious buyer room to assume the worst. Before setting the price, gather permits, invoices, warranties, utility records and the approximate ages of major systems. Required disclosures should be accurate and complete. If an inspection is likely to uncover deferred work, sellers can repair it, price for it or prepare to negotiate it, but pretending it will not matter is rarely a sound plan.

Insurance deserves particular attention in areas exposed to severe weather or rising premiums. Fifty-eight percent of agents said weather damage was the most common claim type among their clients, and 73 percent had seen weather-related claims rise during the prior year. Sellers cannot promise that a buyer will obtain affordable coverage, but documentation about the roof, mitigation features and prior work may help buyers investigate insurability earlier.

Calculate the seller net before deciding whether moving makes sense

The strongest offer is not necessarily the one with the highest headline price. Sellers should compare estimated proceeds after mortgage payoff, commissions or professional fees, transfer charges, repairs, credits, taxes, moving expenses and the carrying cost created by a delayed closing. If the next purchase requires a higher mortgage payment, that belongs in the broader move decision as well.

Twenty-two percent of surveyed homeowners delayed necessary renovations or major repairs in the prior year. Among owners who postponed maintenance or renovation, 62 percent cited cost. That means some listings will arrive with accumulated work, and buyers may price that uncertainty aggressively. A realistic pre-listing net sheet should include a range for inspection negotiations rather than assuming a clean, concession-free closing.

Nationwide commissioned Edelman Intelligence to conduct the online survey from July 10 through July 29 among 1,000 homeowners and 400 independent insurance agents. The homeowner sample was nationally representative across several demographic and regional measures, according to the report. It captures attitudes, not a forecast for any particular local market.

The seller takeaway is straightforward: Homeowner reluctance can constrain supply, but it also reflects the affordability pressure facing buyers. Price for the market that exists, allow time for careful underwriting and inspections, and judge every offer by expected net proceeds and closing risk. Owners who value speed or certainty can also compare a conventional listing estimate with an instant-offer option, provided both are evaluated on the same net basis.