65 housing markets with an inventory surge that benefits homebuyers
Among the nation’s 200 largest housing markets, these 65 metro areas now have active housing inventory above 2019 pre-pandemic levels.
Although national headlines often highlight the housing market as a seller's stronghold with record-high home prices, a deeper analysis reveals that several regional markets have shifted, giving homebuyers more negotiating power.
During the pandemic-driven housing boom from summer 2020 to spring 2022, active home listings in most markets dwindled as surging buyer demand quickly absorbed nearly every available property. However, as of December 2024, a growing number of regional markets have seen their active inventory rebound to 2019 levels, tilting the balance in favor of homebuyers. Nationally, active inventory remains 16% below December 2019 levels, but 65 of the country’s 200 largest metro areas ended December 2024 with more homes for sale than they had in pre-pandemic December 2019. These markets are expected to offer homebuyers greater leverage or a more balanced playing field heading into 2025.
This marks an increase from the previous month: when ResiClub conducted a similar analysis using November 2024 data, only 59 markets had surpassed pre-pandemic inventory levels.
Many of the softer housing markets, where buyers have gained leverage, are concentrated in the Gulf Coast and Mountain West regions. These areas were among the nation’s top pandemic boomtowns, experiencing significant home price appreciation during the housing boom. However, as pandemic-driven migration slowed and mortgage rates rose, markets like Punta Gorda, Florida, and Austin, Texas, faced challenges as they became increasingly reliant on local incomes to support elevated home prices. The softening in these markets was further exacerbated by a surge in new home construction across the Sun Belt. Builders in these regions have often been willing to lower prices or offer other incentives to sustain sales, which has also cooled the resale market. Some buyers who might have considered existing homes are now turning to new construction, where more favorable deals are available.
In contrast, many Northeast and Midwest markets were less affected by pandemic migration and have seen less new home construction. With less exposure to the demand shocks of the pandemic, active inventory in these regions remains relatively tight, maintaining the advantage for sellers.
In general, housing markets where inventory (active listings) has returned to pre-pandemic levels have seen weaker home price growth—or even declines—over the past two years. Conversely, markets where inventory remains well below pre-pandemic levels have generally experienced stronger home price growth during the same period.