Summary
More Americans are inheriting their homes, especially in California, due to high housing costs and regional rules that encourage passing properties down to family members. In 2025, 18% of property transfers in California were through inheritance, which is a significant increase from 2019. This trend may lead to fewer homes being available for sale, making it harder for buyers to find properties.
Key Facts
- In 2025, 18% of property transfers in California were due to inheritance, up from 12.6% in 2019.
- Nationwide, 7.4% of property transfers in 2025 involved inherited homes, up from 4.2% in 2019.
- 340,000 homes were inherited across the United States in 2025.
- In California, inherited homes now outnumber new-home sales by more than two to one.
- California's property tax rules encourage holding onto properties because they allow low tax rates to be passed down to heirs.
- Homeowners may prefer to pass homes to family rather than sell in a tough market, reducing available homes for sale.
- The trend of inherited homes can make it more difficult for first-time buyers to find affordable homes.
