What Rising New Home Inventory Really Means for Buyers and Sellers

You may have seen headlines saying new home inventory is at its highest level since the housing crash. If you remember 2008, that can feel unsettling. But before you jump to conclusions, let’s break it down.

A lot of the online chatter is designed to grab attention. The truth is, when you look at the full picture, today’s housing market is very different.

Why This Market Isn’t 2008

Yes, there are more new homes available right now than at any point since the crash. But focusing on that one number leaves out the bigger picture.

To really understand inventory, you have to consider both new construction and existing homes. When you put them together, it’s clear we’re nowhere near the oversupply we had during the crash.

So while the headlines sound alarming, the reality is much healthier.

Builders Have Been Catching Up After Years of Underbuilding

Here’s what those attention-grabbing posts won’t tell you: builders drastically slowed down after 2008. For over 15 years, they built far fewer homes than what was needed to keep up with demand. That long period of underbuilding left us with a major housing shortage.

Even with construction activity increasing recently, there’s still a gap to fill. Experts at Realtor.com estimate it could take 7.5 years to build enough homes to truly balance the market.

That’s why the recent uptick in new homes for sale isn’t a warning sign of oversupply. It’s a much-needed step toward catching up.

The Bottom Line

More new homes on the market doesn’t mean we’re heading for another crash. It means builders are finally starting to close the housing gap. The overall supply situation today looks nothing like it did in 2008.

If you’re curious about what’s happening with new construction in your area, or if you’re considering buying or selling call me, Teresa Hill, for expert guidance on today’s market.

*Information and Graphic sourced from Census, NAR, Zillow, & Keeping Current Matters