Palo Alto, Calif. — Sept. 4, 2024 — A new study1 released today by leading home equity investment platform Point found that many homeowners who wish to move are at a standstill, with 55% of those who planned to move this year unable to do so. High home prices, elevated mortgage rates, and a lack of housing inventory are the key causes of this gridlock, causing uncertainty about when the backup will clear.
Beyond those who had specific plans to move this year, according to Point’s research, the number of homeowners who wish they could move has risen nearly 40 percentage points over the past year. Today, 72% of homeowners wish they could move at some point, up from just 35% a year ago. There’s also more urgency: this summer, nearly half (47%) of homeowners said they want to move sometime in the next 12 months, compared to only about a quarter (25%) who said the same in the summer of 2023.
“Our research shows that homeowners want to change their living arrangements but are unable to do so due to the current housing economy,” said Eddie Lim, co-founder and CEO of Point. “Where we reside is such a huge part of our lives, leaving those who want to move in an incredibly frustrating situation, especially when there seems to be no end in sight.”
Although the Federal Reserve is more likely to lower rates in September, 90% of homeowners surveyed say current rates are preventing them from moving. Most respondents indicated that rates would need to drop below 6% for them to consider buying in the next 6 to 12 months.
While affordability concerns around mortgage rates and home prices are keeping homeowners in place, other factors – namely their home’s size and location – are driving their desire to move. Of those looking to move, about 40% cited the size of their house as the primary reason, whether they want a larger (25%) or smaller (16%) home. For these homeowners, renovating is the logical option. Two-thirds (66%) of homeowners surveyed plan to perform renovations on their homes in the next 12 to 18 months.
For homeowners planning renovations, cash is king: 39% plan to use cash to fund their projects, compared to about 27% who plan to take out a HELOC or a cash-out refinance. Interest rates are still a factor for those looking to take on renovations: 35% of those not considering a HELOC or refinance said it was because interest rates on these products are too high. Just 3% plan to use a home equity investment for a remodel.
“We believe many homeowners are unaware of how a home equity investment can help,” continued Lim. “A home equity investment has no income requirements, does not demand perfect credit, nor does it add a new monthly payment. We believe our product can assist many homeowners in updating their current homes, helping them avoid the gridlock altogether.”
For more details on the study, the full report can be found here.
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Frequently Asked Questions
1 For this survey, we asked 1,071 homeowners ages 20-80 about their moving and home renovation plans using Survey Monkey’s online panel. The survey was conducted on June 30th, 2024, with a margin of error of +/- 4%.
