Big changes are coming to how military families move – and that could reshape the way service members think about buying a home. In May 2025, the Department of Defense announced a major overhaul to Permanent Change of Station (PCS) policy. Beginning in 2026, the DoD plans to reduce discretionary PCS moves by 50% by 2030. While this shift could ease the disruption of frequent relocations, it also introduces new considerations for military homebuyers – especially those weighing whether to buy or rent during their next assignment.
DoD’s PCS Policy Changes: What’s Actually Changing?
A recent memo from the Under Secretary of Defense for Personnel and Readiness outlines a plan to cut discretionary PCS moves by 50% by fiscal year 2030, starting with a 10% reduction in 2027. This means reductions will begin October 2026.
Discretionary PCS moves, those not required for mission needs, include career development or education-related relocations. The goal is to prioritize geographic stability and allow service members to specialize in specific roles without frequent relocations.
This shift aims to address long-standing concerns about the impact of frequent moves on family life, spouse employment, and the overall wellness of a military family. A recent survey indicated that 32% of active-duty spouses favored leaving the military, mentioning challenges like finding employment and securing child care after a move.
Why the PCS Reforms Could Encourage Military Homeownership
For service members eyeing homeownership, these policy changes could be a double-edged sword, let’s look at how these changes might affect military homeownership long-term.
Increased Stability and Confidence in Buying
With fewer moves, families might feel more confident investing in property, knowing they’ll stay in one location longer. If families can imagine that home will be “home” long enough for them to unpack boxes, decorate, plant a garden, build a man-shed, etc., it’s more likely they will want to make that move into homeownership rather than renting for five years.
Financial Benefits of Longer Assignments
The ability for families to stay longer at one location offers two very positive financial options.
At WeVett, we strongly recommend the 3-year rule: if you don’t plan to live in or hold a home for at least three years, buying may not be the right call. Any less than that, families run the risk of having to sell at a loss because they haven’t accumulated enough equity in the home to offset the cost of purchasing (especially if they purchased using 0% down).
Second, longer tenancy also benefits spouses seeking gainful employment. It allows spouses to obtain employment for longer term positions, gain career enhancements and raises, and provides solid work history for future employment opportunities.
Stronger Community Roots for Military Families
Longer stays allow families to build deeper connections within their communities, which can vastly improve mental and emotional health for all members of the family. Children benefit from consistent schooling, long-term friendships, and the emotional security that comes with staying rooted.. Families will have the chance to connect not just with other military families, but also create relationships with people in the local community, such as neighbors, who can provide advice and assistance on different homeownership challenges or projects.
The Flip Side: New Risks for Military Sellers and Investors
Potential Trouble Selling in Military-Heavy Markets
In some duty stations, military homeowners may find it difficult to sell or rent out their home if service members are moving less frequently, especially if their home is in a predominantly a military-owned neighborhood. For areas that are crash-pad dense, investment owners might want to be cautious before investing too heavily in one location.
Risks from Market Volatility and Unplanned Moves
The real estate market’s volatility means that even with longer stays, buying a home carries financial risks, especially if unexpected relocations occur.
Smart Strategies for Homebuying Under the New PCS Rules
Thinking about buying a home under the new PCS rules? Here’s how to make a confident move:
Know Your Assignment Timeline (The 3-Year Rule)
Understand the expected length of your current assignment and any potential for extensions. Again referencing our 3-year rule, if your assignment is less than three years and you don’t intend to rent the property out when you leave, you might want to consider renting.
Get Matched With a Local Military-Experienced Agent
Seek guidance from a PCS real estate expert and research the housing market in your area to determine if buying is the right move for you. Local housing markets differ across the country, and what makes sense in one city, might be a recipe for disaster in another.
Build a Financial Exit Plan Just in Case
Think about the property’s resale potential or its viability as a rental if you need to move unexpectedly. Despite the potential for increased stability in move cycles, the military still has to remain operationally effective, and sometimes that means moving key people at unexpected moments. Have a game plan established for the unexpected: create a rental strategy and potential pro forma, take advantage of a VA streamlined refinance to reduce your mortgage payment, or complete minor upgrades on the home to boost resale value – that way one PCS move doesn’t sink your financial ship forever.
What These PCS Changes Mean for Your Future
The DoD’s PCS policy overhaul represents a significant shift in military life, aiming to balance operational readiness with family well-being. While the changes promise greater stability, they also require service members to navigate new challenges, especially concerning career progression and financial planning. We will begin to see those changes come into affect in 2026 – and from there, we hope to see the benefits outweighing the downsides for military families, especially when it comes to home ownership.
Need help deciding whether to buy or rent during your next move? We’ll connect you with a VA loan specialist and a military relocation expert – nationwide.
