📈  Chart of the Week 8/24/2025

By Michael Allison, CFA

This week’s Chart tells a clear story: mobility in America has been in steady decline for the past three decades. In 1994, roughly 16% of Americans moved each year. Today, that number has been cut in half, with only about 8% changing addresses. What’s behind this striking shift?

First, the economic angle. Housing affordability is at its worst levels in decades. Rising mortgage rates and soaring home prices have created a “lock-in” effect, particularly for homeowners who refinanced at historically low rates in 2020–2021. Trading a 3% mortgage for a 7% one simply isn’t appealing, so people stay put. On the rental side, escalating rents in many metro areas have the same freezing effect: fewer options worth the cost of moving.

Second, the labor market has changed. In the 20th century, people often moved to chase jobs. But with the rise of remote and hybrid work, geography has become less critical. At the same time, the types of jobs that drive interstate migration—manufacturing, construction, resource extraction—have been shrinking as a share of total employment. Today’s knowledge work is far more portable without a U-Haul.

Third, demographics matter. The U.S. population is aging, and older Americans are far less mobile than younger cohorts. Younger generations are also marrying later and having children later, which historically were catalysts for moving. The result: fewer life-stage moves.

Finally, there’s a cultural component. Surveys suggest Americans are increasingly rooted—more connected to local communities, extended families, and familiar schools. Stability has value, and in an uncertain world, people may be choosing it more deliberately.

For investors and policymakers, declining mobility has broad implications: slower regional labor reallocation, stickier housing markets, and less dynamism in the economy overall. America may still be a land of opportunity—but increasingly, people are pursuing it without leaving home.

Sources: Business Insider, Wall Street Journal (August 15, 2025), Federal Reserve Bank of Richmond.

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