Moving Companies NAICS 484210

May 21, 2025 - Home Builders Boost Incentives to Lure Wary Buyers

• US home builders are dangling more incentives to close deals amid a tepid spring home-buying season that is halfway over, according to The Wall Street Journal. Builders typically notch 40% of their annual sales during the spring, but mortgage rates that are stuck around 7% and a lack of affordability have reduced demand. Builders have increased incentives to bring buyers off the sidelines, including mortgage-rate buydowns, design upgrades, and price cuts. In the first two weeks of April, incentives offered by builders equaled 7.2% of the purchase price, up from 6.1% in January, according to data from John Burns Research & Consulting. Incentives are eating into builder profits during a season that usually sees few discounts, and prices tend to rise.
• The number of retiree moves declined nearly 24% in 2024, according to analysis of Census Bureau data by moving services firm HireAHelper. High mortgage rates and home prices likely put downward pressure on retiree moves, as mortgage rates in 2024 remained around 7% and the average home price was about $500,000, according to HireAHelper. While retirement-related moves dropped in 2024, the market continues to improve compared to the drop caused by the pandemic. There were 298,400 retiree moves between 2023 and 2024, compared to 230,500 in 2021-2022. For retirees moving to a different state, Florida remains the most popular destination by a wide margin. In 2024, Florida accounted for 20% of retiree interstate moves. Minnesota was the second-most popular state with 7%.

• The US homeownership rate fell to 65.1% in the first quarter of 2025, marking the lowest level since the first quarter of 2020, according to the US Census Bureau’s Housing Vacancy Survey (HVS). Homeownership has been pressured as housing affordability remains at the lowest point in several decades amid high interest rates and a lack of inventory. Homeownership rates in Q1 were down across all age groups except people over 65. At 36.6%, the homeownership rate for those under 35 was the lowest in six years. A lower homeownership rate may put downward pressure on demand for moving services as fewer households change from renters to homeowners.
• The advantage in the US housing market may be shifting from sellers to buyers, according to The Wall Street Journal. Bidding wars are less common as competition over homes on the market has waned, which is giving potential buyers more leverage. On average, existing homes are selling for 2% below the asking price, according to Redfin. The reduction in seller pricing power is partly due to more homes coming onto the market. According to Redfin, new listings were up 5% in January compared to a year earlier. Houses are also staying on the market longer, creating an advantage for buyers. In January, the typical home sale had been on the market for two months, marking the most extended period since February 2020, according to Redfin.