Sustainable development is a pressing global concern, particularly in densely populated nations like China, where rural-to-urban migration poses challenges to sustainable land use. This study examines the finite nature of land resources and suggests that encouraging farmers to relinquish rural housing land can improve economic productivity and enhance the efficient utilization of rural areas. Based in the field investigations conducted in Dongtai City, Jiangsu Province, employing in-depth interviews and questionnaire surveys, the research identifies three distinct stages in the rural household migration process: employment transition, residential relocation, and life integration. The findings reveal nuanced patterns: farmers in the employment transition phase exhibit lower intentions to withdraw from housing land, whereas those in the residential relocation phase demonstrate higher withdrawal intentions, which subsequently taper off during the life integration stage. Moreover, the study identifies a non-linear relationship between farmers' migration progression and their homestead withdrawal intentions, with intentions peaking at an intermediate stage before declining. The research highlights the need for policies that comprehensively address the dynamics of farmers' migration. Recommended strategies include implementing tailored compensation mechanisms and urban incentives to enhance the appeal of urban living. Such measures can facilitate smoother farmer migration and promote sustainable land use practices, contributing to overall societal sustainability.