Worried About New Construction? Here’s Why You Don’t Need To Be.

If you’ve seen headlines claiming that newly built home inventory is back at 2009 levels, you might be feeling a little déjà vu—wondering if we’re heading toward another housing crash like the one in 2008.

But let’s pause before we panic.

The truth is, those headlines are missing key context—and as with most clickbait, they’re built to stir emotion, not provide clarity. Here’s what’s really going on...

Why Today’s Market Isn’t 2008

Yes, new construction levels are higher—but they’re nowhere near the oversupply levels we saw before the crash.

In fact, back in 2007–2008, we had a flood of overbuilding. By 2009, construction had already dropped off significantly. So today’s numbers being “like 2009” doesn’t mean we’re overbuilding again—it means we’re slowly getting back to normal after a long construction drought.

Builders Have Been Catching Up, Not Overbuilding

After the crash, homebuilders pulled back hard—and for over a decade, they didn’t build enough to meet demand. That’s led to the housing shortage we’ve been feeling ever since.

The recent rise in new homes is not a red flag—it’s a course correction.

As Odeta Kushi, Deputy Chief Economist at First American, puts it:

“This means more homes on the market and more options for homebuyers, which is good news for a housing market that has been underbuilt for over a decade.”

What This Means for You

More new construction = more options for buyers. That’s a positive shift, especially if you’ve been frustrated by low inventory and bidding wars.

Every local market is different, but nationally, there’s no bubble bursting here—just a healthy adjustment.

Let’s Talk About Your Local Market

If you're curious about what’s happening right here in our area—or you're wondering if a new build might be right for your next move—I’d love to help you cut through the noise.

I'm Teresa Hill, and I help buyers and sellers make confident real estate decisions with the facts... not fear.

*Information sourced from First American, Census, NAR, & Keeping Current Matters