Why Homeowners are Quietly Quitting the US Housing Market

Ever noticed more and more people quietly leaving their homes in the US because of quiet quitting US housing market scheme?

This seems to be a low key trend ongoing in the United States where people are slipping away from their houses without taking action.

Now, you might be wondering, why are home prices dropping so suddenly, and why are people ditching their homes. Well, we’re about to break down what’s going on in simple terms.

Let’s dive into why some homeowners are giving their homes a silent goodbye and what it means for the rest of us.

What Does Quiet Quitting US Housing Market Mean?

“Quiet quitting” at work is like when you just do the bare minimum. Now, imagine a similar thing happening in the US housing market.

It’s like doing the least to keep a roof over your head without going all-in with your time, energy, and money on a house. Maybe you can’t afford it, or you just find the whole idea a bit ridiculous.

Will house prices drop soon? Probably not much. Earlier in 2023, prices did dip a bit, the first time in over a decade, but it wasn’t a big drop, and now prices are high again.

Buying a house these days can be tough. Prices are really high, and there aren’t many houses available.

A survey from Zillow says that half of homebuyers end up crying at least once during the whole process, stressing them out as much as planning a wedding or getting fired.

Reasons for Quitting the US Housing Market

Millions of Americans are being forced to postpone making important life decisions and their next steps due to high prices, a severe lack of listings, and mortgage rates that have more than quadrupled from record lows just a few years ago.

Here is the breakdown of why most Americans are quitting the housing market and they are;

1. Higher Mortgage Rates

When mortgage rates go up, it’s harder for people to buy a new home or get into the property market for the first time.

They can’t borrow as much money because so many people decide it’s better to wait until rates are lower.

As a result, a lot of people end up leaving the housing market.

2. The Social Pressure

There’s this strong social pressure to buy a house, and stepping back from the housing market feels like going against the flow.

For some people, owning a house used to be a symbol of making it, a sign of success and stability. Going against this expectation is tough.

Many friends and family assume you haven’t succeeded without a house, and that makes things even more challenging.

3. It Felt Like a Bad Investment

People often say, “Houses are always a good investment,” but it doesn’t quite sound true. In the housing world, we usually want the value of our house to go up.

But now, with the government increasing interest rates to control living costs, including housing, thinking of buying a home as an “investment” just based on it gaining value seems a bit unrealistic.

Right now, buying a house doesn’t feel like a straightforward investment, especially given the current circumstances.

4. It Would Kill our Cash Flow

Earning good money is great, but it’s not so great when you have to hand over $5,000 of it every month for housing.

According to Robert Kiyosaki from the book “Rich Dad, Poor Dad,” an investment should make you money, not take money away.

That $5,000 represents missed opportunities, money that could go into making other investments. Even though we can afford to buy a house, it would seriously limit our lifestyle.

5. It Felt Like Handcuffs

Backing away from the housing market wasn’t just a money decision because it’s also about our lifestyle.

Owning a big house felt like tying a heavy weight around our necks, taking away our freedom and chances for other opportunities.

A house demands our time, effort, and money. Renting, on the other hand, is way easier because it doesn’t drain us as much. Having that freedom lets us concentrate on other important things.

Which Locations See the Fastest Decline in US Housing Prices?

When mortgage rates go up, it means people wanting to buy a home or get into the property market for the first time can’t borrow as much as before. Some are deciding to wait until rates are better.

At the beginning of the year, Goldman Sachs predicted a potential housing price drop in four cities: San Jose, San Diego, Austin, and Phoenix.

Turns out, the results are a bit of a mixed bag. Austin saw the biggest drop, losing at least 15% in home value. Phoenix went down by 6.4%, San Jose by 9.33%, and San Diego only dropped 1.1%.

Other places like Boise, Salt Lake City, Seattle, and San Francisco aren’t doing great either. Home prices have fallen, and there might be more bargains as sellers could be more willing to make deals.

Due to the housing market situation, some buyers might find getting a mortgage a bit risky.

This is what it means for us to quietly exit the housing market:

1. We can travel, create lasting memories with our kids, work remotely from different countries, and explore the world.

2. Spending lots of time with family the way we want.

3. Getting what we want, like saving up until we are ready to we want something.

4. We can be intentional about our lives, like designing our lives and choosing the type of life we want to live.

Ways to Start Quiet Quitting Your US House

There are so many ways to start quietly quitting your home if you want to, and some of them are;

1. If you don’t need to or don’t have the time or energy, don’t fold your laundry before putting it away. It is more than sufficient if it is clean.

2. Don’t follow any organizing tricks or tips that seem too complicated; instead, use “your method” for packing things away, regardless of how “ugly” or “inefficient” it is.

3. Do only the dishes you need to do right now. The rest can wait if dinner calls for only forks and plates.

4. Leave your bed!

5. Don’t clean everything before guests arrive. You’re good as long as there’s space for people and enough stuff is stored.

6. Generally speaking, if you are asked to host something, just make the bare minimum of arrangements. With some pretzels and a deck of cards, people will be more than content.

7. Just don’t host anything at all! If at all possible, never!

8. For the majority of your stain removal needs, use Dawn Dish Soap.

9. Don’t bother attempting to fold a fitted sheet by yourself.

10. Simply shut the door when you don’t feel like cleaning.

11. After dark, don’t bother putting your child’s toys away. When they wake up, they’ll probably just take them out again.

12. Just use the dishwasher rather than hand washing everything, as long as it makes sense.

13. Don’t stop using your washing machine.

14. Just buy an oven liner instead of cleaning it.

15. Refrain from giving in to the urge to replace your decor or furniture simply because you’ve reached “adulthood.”

16. Don’t worry about following the latest book-styling fad, such as sorting your titles alphabetically by color. Continue using your system if it is effective for you.

17. Try to stop your hobbies.

18. If cleaning the space behind your desk bothers you, continue using Zoom backgrounds.

19. Don’t buy pajamas for your kids again.

20. Give away plants that are expensive to maintain.

21. Try not to have any plants at all.

22. Or a morning person!

23. If you prefer your IKEA pieces that way or simply lack the time or energy to give them some TLC, they work just fine without hacking.

24. Don’t hang your art on the wall, just lean it.

25. Leave your home the way they are, don’t renovate it.

26. Pay a professional to help you fix something.

27. Leave your things the way they are whenever you get home from a trip.

28. Don’t repair your leaking roof.

29. Don’t repaint the house even if it needs repainting.

30. Don’t fix your faulty appliances.

In the housing world, it’s like everyone is playing a waiting game, from homeowners to those dreaming of buying a house, and even the experts.

Nobody’s quite sure what the future holds, so we’re all keeping our eyes fixed for any hints from the economy or the Fed.

Some places are cooling down after ridiculous price hikes, but overall, people are holding onto their homes, waiting for mortgage rates to become friendlier before selling.

If you’re thinking of investing, there’s a cool tool called Q.ai’s Inflation Protection Kit.

It’s like a breakthrough for your money, with things like precious metals and smart investments to help your money grow, even when things are a bit uncertain.

So, in the housing waiting game, there’s always a strategy to keep your financial game going.