Are we in an Inventory Comeback? These Metros Have More Home Supply Today Than Before the Pandemic

Rhea-AI Summary

Realtor.com (NASDAQ:NWSA) reports a significant recovery in housing inventory across major U.S. metros, with 22 of the 50 largest markets now exceeding pre-pandemic levels. Denver leads with a 100% increase in available homes compared to 2017-2019 averages, followed by Austin (+69%) and Seattle (+60.9%).

The inventory rebound is particularly strong in metros that increased housing construction post-2019. Markets are showing buyer-friendly trends with 4.6 months of supply in May, though still below the 6-month threshold for a buyer's market. Despite local improvements, a nationwide shortage of nearly 4 million homes persists, creating varying market conditions across regions.

Positive

• 22 of 50 largest metros now exceed pre-pandemic inventory levels
• Denver shows 100% inventory increase, with 5 other metros seeing over 50% growth
• Strong correlation between post-2019 building activity and inventory recovery
• Market trending towards most balanced conditions since 2016

Negative

• Nationwide housing shortage of nearly 4 million homes still persists
• Market conditions remain uneven across regions
• Longer selling times indicate cooling demand in some markets
• Supply at 4.6 months still below 6-month buyer's market threshold

Insights

Real Estate Market Analyst

Realtor.com data shows housing inventory recovering in key metros, signaling market rebalancing despite persistent nationwide housing shortage.

The latest Realtor.com report reveals a significant milestone in housing market recovery, with 22 of the 50 largest U.S. metros now showing higher inventory levels than pre-pandemic norms. This marks a meaningful shift in market dynamics after years of extreme supply constraints.

Denver leads this recovery with an impressive 100% increase in available homes compared to 2017-2019 averages, followed by Austin (69%) and Seattle (60.9%). What's particularly noteworthy is the correlation between post-2019 construction activity and inventory growth. Markets that prioritized new housing development during and after the pandemic are now experiencing the strongest inventory rebounds.

This trend isn't solely driven by new construction, however. We're seeing homes sit on the market longer in many regions, particularly in the West and South. Nashville listings now take an additional 19 days to sell compared to last year, while Orlando and Miami properties remain available 13 days longer on average. This extended market time contributes significantly to inventory accumulation and reflects cooling demand in previously overheated markets.

Despite these improvements, it's premature to declare a buyer's market nationally. The current 4.6 months of supply remains below the traditional 6-month threshold that typically defines a buyer's market. More accurately, we're witnessing a market rebalancing that varies considerably by region. This geographic divergence in market conditions creates a complex landscape where some metros approach buyer-friendly territory while others remain firmly supply-constrained.

Underlying this transition is the persistent structural deficit in housing—the nationwide shortage of nearly 4 million homes continues to provide a floor for the market. This fundamentally distinguishes today's evolving conditions from previous buyer's markets that followed periods of overbuilding.

Denver, Austin and Seattle take the top three spots when it comes to active inventory growth

AUSTIN, Texas, July 2, 2025 /PRNewswire/ -- After years of tight supply, is housing inventory bouncing back? According to the most recent Realtor.com^® Monthly Housing Report, 22 of the 50 largest U.S. metros have more active listings on the market than they did pre-pandemic.  Denver has seen the largest recovery with a 100% increase in available homes compared to 2017–2019 averages followed by Austin (+69%) and Seattle (+60.9%).

"For-sale housing inventory in Denver has doubled compared with the pre-pandemic norm, providing a clear sign of a housing market realignment," said Danielle Hale, Chief Economist at Realtor.com^®. "In some areas, affordability concerns have also slowed buyer demand, giving the market room to breathe and contributing to gains in homes for sale. In general, we're seeing strong inventory rebounds in metros that have built more in the last 6 years.  This milestone underscores both the importance of enabling housing construction and the growing divide in housing conditions across regions, where some markets are rapidly normalizing and others remain stuck in low-supply dynamics."

The 10 Metros with the Largest Gains
These metros have seen the most dramatic improvement in active inventory versus pre-pandemic levels. Mostly situated in the West and South, the list of cities may not come as much of a surprise, although the amount of growth each metro experienced is notable. Six metros saw active inventory grow more than 50% over the years with much of the growth coming in the last year.

Rank	Metro	Change in Active Inventory vs. Pre-Pandemic
1	Denver, Colo.	+100.0 %
2	Austin, Texas	+69.0 %
3	Seattle, Wash.	+60.9 %
4	Dallas-Fort Worth, Texas	+55.5 %
5	San Antonio, Texas	+58.3 %
6	San Francisco, Calif.	+53.5 %
7	Nashville, Tenn.	+44.4 %
8	Orlando, Fla.	+44.2 %
9	Las Vegas, Nev.	+28.6 %
10	Tucson, Ariz.	+23.0 %

What Are These Metros Doing Differently?
Markets that built the most new housing during and after the pandemic are now the most likely to show inventory gains. Cities like Austin, Denver, and Nashville not only saw rapid construction growth, but also now face longer selling times, both of which contribute to rising inventory. Realtor.com's analysis shows a strong positive correlation between post-2019 building activity and inventory recovery.

Time on Market Adds to Inventory Pile Up
Buyers are moving more cautiously in 2025, and in many Western and Southern metros, homes are sitting longer. That extra time on the market is allowing active inventory to build. This suggests that demand has cooled, and prices have leveled off and even softened in some markets. In Nashville, listings now linger an average of 19 days longer than a year ago. In Orlando and Miami, the increase is 13 days on average.

We're not in a Buyer's Market… Yet
While the U.S. housing market isn't officially in a buyer's market, with 4.6 months of supply in May, still below the 6-month threshold that typically defines one, conditions are shifting in a buyer-friendly direction. Buyers today are seeing more options, more time to make decisions, and increasing willingness from sellers to negotiate on price and terms. This evolving landscape aligns with Realtor.com's 2025 forecast, which predicted the most balanced market since 2016. However, unlike past buyer's markets that followed overbuilding, today's transition is unfolding against a backdrop of chronic underbuilding, with a nationwide shortage of nearly 4 million homes. As a result, while some metros may tip into buyer's territory, others will remain tight, making local trends more critical than ever for buyers and sellers alike.

For more insights and detailed metro-level data, visit Realtor.com/research. And to stay up to date on monthly housing trends, check out the most recent Realtor.com report here. New data is released at the beginning of every month.

Methodology
Realtor.com^® housing data as of May 2025. Listings include the active inventory of existing single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com^®; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com^®. Realtor.com^® data history goes back to July 2016. The 50 largest U.S. metropolitan areas as defined by the Office of Management and Budget (OMB-202301) and Claritas 2025 estimates of household counts.

About Realtor.com^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact:  Asees Singh, press@realtor.com

 

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SOURCE Realtor.com

FAQ

Which U.S. cities have the highest housing inventory growth compared to pre-pandemic levels?

Denver leads with a 100% increase, followed by Austin (+69%) and Seattle (+60.9%). Other top markets include Dallas-Fort Worth (+55.5%) and San Antonio (+58.3%).

What is causing the housing inventory comeback in certain metros?

The inventory recovery is primarily driven by increased post-2019 construction activity and longer selling times. Markets that built more new housing during and after the pandemic are showing the strongest inventory gains.

Is the U.S. housing market currently in a buyer's market?

No, the market is not yet in a buyer's market. With 4.6 months of supply in May 2025, it remains below the 6-month threshold that typically defines a buyer's market, though conditions are becoming more buyer-friendly.

How has the time on market changed in major metros according to Realtor.com?

Properties are staying on the market longer in several metros, with Nashville seeing a 19-day increase compared to the previous year, while Orlando and Miami properties are taking an average of 13 additional days to sell.

What is the current state of the nationwide housing shortage?

Despite inventory improvements in some metros, there remains a nationwide shortage of nearly 4 million homes, resulting from chronic underbuilding rather than market oversupply.