<p>Despite extensive research on rural land reforms, existing studies often rely on linear, variable-oriented approaches that overlook the non-linear, interdependent nature of farmers’ homestead land transfer decisions, leading to oversimplified explanations of heterogeneous responses amid rapid urbanization. This configurational gap is especially evident in China, where farmers’ choices defy single-factor dominance, reflecting complex interactions shaped by multiple conjunctural causation. Advancing a configurational perspective, our analysis reveals three key insights: First, overall, farmers’ transfer willingness emerges through diverse, equifinal pathways characterized by asymmetric causation, demonstrating that decisions follow non-linear combinations rather than independent factors, thus transcending traditional regression models. Second, occupational differentiation generates a “dual paradox,” simultaneously promoting commercial transfers by reducing land dependency and facilitating asset monetization, while inhibiting public-interest transfers through weakened community ties and collective engagement. Third, resource endowments and environmental perceptions exhibit complex, context-dependent interactions, with no universally dominant factor—such as high farmland ownership enabling transfers in resource-rich contexts but constraining them amid economic insecurity. These findings enrich theories of rural transformation by emphasizing non-linear, asymmetric causation and offer policy insights for optimizing homestead reforms, addressing land idleness, urban-rural disparities, and poverty alleviation in developing contexts.</p>