Why American Relocations Are Plummeting

In recent years, Americans have been moving less frequently as they grapple with rising housing costs and an affordability crisis, according to new data from the Bank of America Institute. Mobility has declined across all income groups, generations, and move types, with longer-distance relocations falling more sharply. Moves within the same city have also declined at a faster rate since the second quarter of 2025, indicating that the high cost of housing is a significant factor in Americans' decision to stay put.

Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors, stated that Americans are "locked in place." Many homeowners are trapped by low-interest rate mortgages and lack a motivating factor to move, even if their homes are no longer ideal. Additionally, affordability conditions have made homeownership unattainable for many young adults, who remain living at home.

The rise of remote work during the pandemic boosted domestic migration, with many relocating to cities and states with lower taxes, cheaper housing, and better lifestyles. However, this trend slowed in 2023-2024, although it did not stop. The cost of housing has risen significantly since 2019, with many U.S. households being cost burdened, dedicating more than 30% of their income to housing costs. This has reduced moving among homeowners and shut out young adults from homeownership by reducing available inventory.

Lautz explained that housing affordability, higher mortgage interest rates, and an aging population are interlinked, leading to reduced moving among homeowners and fewer opportunities for young adults to enter the homeownership market. The Baby Boomers, Gen Xers, and some older Millennials are the ones holding onto their keys, as they have little need to move, except possibly to transition to easier floorplans as they age in place.

While housing costs are a significant factor, other considerations like family, the social and natural environment, and the appeal of the community also influence an individual's decision to move or stay. Experts believe that domestic migration is unlikely to return to pre-pandemic levels unless there is another major shock, such as changes in workplace trends, fear of the unknown, or the desire to be near loved ones. Low mortgage interest rates may also play a role in driving migration.

In the short term, reduced mobility may mean that some Americans forgo better employment opportunities in more affordable areas, despite this being a sacrifice they might be willing to make. However, if this trend continues in the long term, it could have more significant consequences beyond the individual, such as a potential decline in the U.S. fertility rate.