The Great American Lock-In: Homeowners Stay Put for Record Lengths, Coastal States Lead the Trend
American homeowners are staying put at historic rates, creating a frozen core within the nation's housing market. According to a year-end report from real estate data firm ATTOM, the average tenure for sellers in the fourth quarter of 2025 reached 8.55 years—the highest level recorded in at least 25 years. This trend is most acute in high-cost coastal states, where homeowners are effectively 'locked in' by a combination of low-rate mortgages and prohibitively high replacement costs.
The analysis points to a perfect storm of factors: mortgage rates stubbornly above 6%, near-record home prices, and critically low inventory. "We're witnessing a market defined by inertia," said Hannah Jones, Senior Economic Research Analyst at Realtor.com®. "For a significant portion of homeowners, selling would mean forfeiting a sub-4% mortgage rate and facing a dramatically higher monthly payment, even for a comparable or smaller home. The financial disincentive to move is overwhelming."
This stagnation has profound consequences. With fewer existing homes changing hands, inventory remains desperately tight, particularly for first-time buyers. The report notes a stark regional divide: Massachusetts leads the nation with an average homeowner tenure of 13.29 years, followed by Connecticut (13.02 years) and California (11.24 years). Conversely, states like Maine (4.8 years) and Mississippi (5.95 years) see far more frequent turnover.
"This isn't just a cyclical blip," Jones emphasized. "The concentration of long tenures in coastal states points to deep structural issues—strict land-use regulations, limited space for new construction, and chronically high prices. Moving within these markets almost always means a severe escalation in housing costs."
Paradoxically, the market that is frozen for most is still active for some. All-cash sales surged to over 39% in 2025, the highest share since 2013, giving investors and equity-rich buyers a decisive advantage in a competitive landscape.
On the ground, agents see the human side of the statistics. "My clients are sitting on massive paper gains, but they feel trapped," said Carl Lantz, a Coldwell Banker Realty agent in West Hartford, Connecticut. "They look at the price of a smaller 'downsize' home and realize the move makes little financial sense. Many are simply choosing to age in place."
For the market to thaw, experts say a meaningful drop in mortgage rates is likely needed to bridge the gap between homeowners' existing payments and the cost of a new loan. Until then, the great American lock-in appears set to continue, defining a generation of housing mobility—or the lack thereof.
Reader Reactions
Michael R., Financial Planner, San Diego: "This data confirms what my clients have been feeling for years. The 'locked-in' effect is a massive wealth preservation tool for existing owners but a brutal barrier to entry for newcomers. We need serious policy focus on increasing density and supply in high-cost areas."
Lisa Chen, First-Time Buyer, Boston: "It's beyond frustrating. Every open house is packed, and every decent listing gets multiple cash offers. We're competing against investors for the tiny fraction of homes that do come up, while everyone with a 3% rate is just… staying. It feels like the ladder has been pulled up."
David P., Retired Homeowner, Fairfield County, CT: "Why should I move? My mortgage payment is less than what some people pay for a car. Sure, my house is too big now, but selling would mean giving up financial security for a massive new monthly burden. The system punishes you for trying to make a sensible life change."
Janet L., Real Estate Developer, Atlanta: "The coastal stagnation is a warning sign. It shows what happens when supply is artificially constrained for decades. The solution isn't just lower rates—it's building more homes, of all types, in the places people want to live. The markets with shorter tenures prove that more fluidity is possible."