Most Americans would rather stay in their current home and make renovations than move, according to a new study from Zillow.

The real estate tech company’s latest “Housing Aspirations” report finds that 76 percent of Americans would rather use a set amount of money to upgrade their homes, as opposed to using that same set of funds as a downpayment on a house.

“Even in a seller’s market, simultaneously buying and selling is an exercise in frustration,” said Skylar Olsen, Zillow’s director of economic research and outreach. “Add to that the emotional history between you and your home and it’s no wonder low inventory has been in a self-fulfilling cycle.”

“Homeowners may hesitate to sell because of limited options for them as buyers, but by holding on to their homes, they are themselves contributing to low inventory,” added Olsen.

Older or retired Americans are even more likely to want to stay in their own homes, according to the study. Overall, 87 percent of people 55 and older – and 91 percent of retirees would rather renovate than move.

The biggest reasons homeowners are hesitant to move is a combination of dreading the move – and the costs associated with moving – and a lot of homeowners just generally really like their current homes. A separate study from Zillow on consumer trends found recently that 83 percent of respondents love their homes and 63 percent don’t have any plans to sell their homes.

Rising mortgage rates, which have climbed steadily this year, are another impediment to wanting to move. Many current homeowners purchased at a lower rate and don’t want to be taking on a pricier new mortgage.

The combination of not wanting to move and homeowners loving their current homes is at least one reason that inventory has fallen steadily the past few years, according to Zillow. Nationally, the number of homes for sale has fallen year-over-year for nearly four straight years, although the pace of that decline has fallen in recent months, according to Zillow.

Not every segment of the population has little interest in moving, however. Zillow’s survey found that respondents ages 18-34 that currently rent are most likely to use their money for a downpayment on a house.

Regionally, 80 percent of homeowners in Boston and Detroit said they would choose to stay in their current home and make updates versus move. Los Angeles had the highest share of respondents that would use the money for a downpayment, but still, more than two-thirds of respondents said they would rather just make renovations.

Email Patrick Kearns

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for 50% off.SUBSCRIBE NOW×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription