5-year housing forecast: Why almost 1 in 3 homeowners are planning an exit
According to Hippo's 2026 Housepower Report, nearly 1 in 3 homeowners (32%) plan to move out in the next five years. For many, the decision comes down to regret–most say their current home isn’t what they thought it would be.
Surprise bills and emergency repairs happen to all homeowners, and they don't necessarily mean it was a mistake to buy your home. But if you're planning a move soon, there's a good chance your home isn't what you need right now. Here’s what U.S. homeowners planning a move say about their current homes, and what to expect in your next house hunt.
Key takeaways
- 32% of homeowners plan to move within the next five years. Homeowners who plan to move by then are typically driven by wanting a larger home or more space (27%) or wanting to live in a different city or neighborhood (23%)
- 47% of Gen Z homeowners (ages 18-28) and 43% of Millennial homeowners (ages 29-44) plan to move in the next five years, compared to 30% of Gen Xers (ages 45-60) and 18% of Baby Boomers (ages 61-79)
- 85% of homeowners planning a move in the next five years say unexpected home issues have affected their financial stability and 67% of homeowners moving in the next five years have regrets about their home purchase. In comparison, only 33% of homeowners not moving in the next five years have regrets
Nearly 1 in 3 homeowners plan to move by 2030
Nearly 1 in 3 (32%) homeowners plan to move in the next five years. The main things driving this trend are the desire for a larger home or more space (27%) and the wish to relocate to a different city or neighborhood (23%). These are long-standing, common motivations for moving and could indicate that people are often leaving a home they like but no longer meets their current needs.
Younger generations, who may be less established in their current home or neighborhood, are far more likely to move within the next five years than older homeowners:
- Gen Z homeowners (ages 18-28): 47%
- Millennial homeowners (ages 29-44): 43%
- Gen X homeowners (ages 45-60): 30%
- Baby Boomer homeowners (ages 61-79): 18%
Home prices are showing signs of relief in 2026
After a challenging few years for homebuyers, with home prices high and mortgage rates higher, people looking for a new home might see some relief. Home prices are expected to fall in many cities in 2026.1
We can see that's begun already, thanks to federal Census data. The median sales price of a home in the United States was $405,300 in the fourth quarter of 2025, the latest data available. That's much higher than it was before COVID-19 began (when homes were sold for a median price of $317,100), but down slightly from a 2022 high (when the median was $442,600).2
Mortgage rates have also improved recently. The average 30-year fixed-rate mortgage currently has a roughly 6% interest rate. The Federal Reserve set rock-bottom interest rates early in the pandemic, which influenced mortgage rates and sent them as low as 2.65%. Rates rocketed up to a recent high of 7.79% in October 2023, but they've stabilized somewhat since.3
In the past several years, many U.S. homeowners clung to their homes with low mortgage rates, even if they really wanted to move.4 But it's highly unlikely mortgage rates will go down to that pandemic-era 2%.
Still, depending on where they live, some homeowners may have a hard time finding properties in their budget. New housing stock brings down the cost of local housing, but the number of new housing units built has fallen year-over-year.5 Amid high prices for most expenses like transportation and food, many people are still struggling to upgrade their living situation.6
Homeownership today is still more expensive than it was a few years ago. But if you're willing to find creative solutions, like multigenerational living, homeownership may still be attainable even if you earn a lower individual income.
Most homeowners planning a move regret their home purchase
Many people who sell their house love their home. But 67% of homeowners moving in the next five years regret their home purchase. Those regrets are often fueled by higher-than-expected maintenance needs or running into other hidden costs.
Issue | Percentage of homeowners |
|---|---|
I've faced more unexpected issues than I anticipated | 27% |
The maintenance and upkeep require more effort than I planned for | 25% |
Homeownership costs more than I thought it would | 17% |
I had to compromise on features I really wanted | 16% |
I'm paying a mortgage rate that's higher than what I can comfortably afford | 16% |
My home insurance premiums are higher than expected | 16% |
I'm concerned about an impending recession | 15% |
Overall, only 33% of homeowners moving in the next five years have no regrets about their home purchase. Additionally, 55% of homeowners moving say home issues negatively impacted their job, relationships, or mental health. Far fewer (19%) homeowners not moving in the next five years say the same.
Specifically, 30% of homeowners moving in the next five years say that their home issues negatively impacted their mental health, compared to only 10% of homeowners who don't plan on moving.
Most homeowners report unexpected home upkeep as a top regret
One in 4 (25%) of homeowners say they regret that maintenance and upkeep on their home requires more effort than they expected. That makes it one of the most common regrets in the country, regardless of someone's local housing market or climate.
There are two notable exceptions. In pricey New Jersey, New York, and Pennsylvania, people sometimes have to compromise when buying a home. Their most common regrets were compromising on the home features they really wanted and facing more unexpected home issues than they expected. Similarly, instead of saying their house needed more upkeep than expected, in the Pacific states of Alaska, California, Hawaii, Oregon, and Washington, the majority of homeowners say they faced more unexpected issues than they expected.
Homeowners on the West Coast had a difficult last few years, with many are already cost-burdened by high housing prices.7 On top of that, houses there are prone to water damage, wildfires, and other disasters, all of which make home insurance more expensive or difficult to get.8 All in all, more than half (51%) of West Coast-area homeowners have regrets about their home purchase, a higher percentage than any other region.
The 2026 Hippo Housepower Report shows that homeowner regrets are still fairly common. While moving out of a home you regret purchasing isn’t an option for everyone, Hippo Insurance Services offers a variety of resources to help homeowners prepare for what’s ahead and thrive wherever they put down roots.
85% of homeowners planning to move say home issues hurt their finances
The majority of homeowners planning a move in the next five years say home issues like utility bill fluctuations, unexpected home repairs, and rising home insurance premiums have affected their financial stability. Fewer homeowners (72%) who are not planning a move say the same.
The most common issues for homeowners planning a move are utility bill fluctuations (42%) and unexpected home repairs (37%). Additionally, 46% of homeowners moving say they were over budget on home maintenance in 2025, compared to the 29% not moving. And 17% of homeowners moving in the next five years say home issues led them or their family to seek temporary housing, compared to the 4% not moving.
This isn't to say that homeownership isn't a valuable experience: 63% of homeowners moving in the next five years still say that homeownership has been worth it or has been a rewarding and positive experience overall.
Found the perfect home? Hippo can help
Homeownership isn’t always easy. But proactive planning, research, and the right insurance partners can make it easier to handle the surprises that come your way.
Whether you’re ready to move or staying put, Hippo can help you find a policy that fits your home. If you’re looking for ways to refresh your current space, our guide below has four ways to refresh a home.
Methodology
Any data referencing the 2026 Housepower Survey was collected on September 22, 2025, and conducted by Centiment on behalf of Hippo Insurance Services. The results are based on 1,619 completed surveys. In order to qualify, respondents were screened to be residents of the United States, over 18 years of age, and homeowners. Data is census-balanced, and the margin of error is approximately ±2% for the overall sample with a 95% confidence level.
The MOE and confidence level for data filtered by specific demographics (subgroups) may differ from the overall result. Because these subgroups are naturally smaller than the total sample, they may have a larger margin of error than the ±2% for the full data set.
External sources
- Redfin. (2026) New Homes Are Getting Cheaper—And a Leading Economist Says That Could Force Resale Prices Down in 2026
- U.S. Census Bureau (2026) Median Sales Price of Houses Sold for the United States
- U.S. Census Bureau (2026) 30-Year Fixed Rate Mortgage Average in the United States
- CNBC. (2023) Why so many Americans feel trapped in their homes by their low-rate mortgages
- U.S. Census Bureau (2026) Monthly New Residential Construction, January 2026
- CBS News (2025) America's deepening affordability crisis summed up in 5 charts
- MPA. (2025) West Coast homeowners face heaviest housing cost burden in US
- McKinsey. (2025) Forging a resilient future for California’s homeowners and insurers
This article is for informational purposes only. The content reflects general homeowner considerations and is not professional advice. It also includes observed trends within the surveyed population and certain additional information compiled from sources not affiliated with Hippo. While we believe this information to be reliable, we do not guarantee its accuracy or completeness. For any insurance-related decision, please consult your licensed insurance producer.
Sources cited are publicly available and referenced in March 2026.
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