Is the U.S. Housing Market Finally Gaining Traction?
After years of limited supply and rising home prices, there are signs that the U.S. housing market may be experiencing a recovery in inventory levels. According to the latest Realtor.com Monthly Housing Report, 22 of the 50 largest U.S. metropolitan areas are now seeing more active listings than before the pandemic. Some of these markets have witnessed dramatic recoveries, with cities like Denver showing a 100% increase in available homes compared to the 2017–2019 average. Austin and Seattle are also seeing impressive gains, with increases of 69% and 60.9%, respectively.
“Denver’s inventory has doubled since the pre-pandemic norm, which signals a significant shift in the housing market,” said Danielle Hale, Chief Economist at Realtor.com. “While affordability concerns are contributing to slower buyer demand in some areas, this has provided more room for the market to breathe and allowed for increased housing availability. In general, metros that have seen more new housing construction over the last several years are seeing the most notable rebounds.”
Cities Leading the Charge in Inventory Growth
While these inventory increases might not come as a surprise, it is striking how much some metros have grown in the last year. As of 2025, these cities have seen the most significant uptick in active listings compared to pre-pandemic levels:
- Denver: +100.0%
- Austin, Texas: +69.0%
- Seattle, WA: +60.9%
- Dallas-Fort Worth, Texas: +55.5%
- San Antonio: +58.3%
- San Francisco: +53.5%
- Nashville, TN: +44.4%
- Orlando, FL: +44.2%
- Las Vegas: +28.6%
- Tucson, AZ: +23.0%
The most substantial increases are primarily seen in cities in the West and South, which have ramped up construction and seen faster-than-usual housing market recovery. As new homes are built, areas like Austin, Denver, and Nashville are dealing with longer selling periods, further contributing to the increase in inventory. Realtor.com’s data reveals that there’s a strong correlation between recent building activity and the rising supply of homes.
Longer Wait Times and Cooling Demand
While it’s great news for buyers that there are more homes to choose from, the flip side is that homes are now sitting on the market for longer. In 2025, many homes in Western and Southern urban areas are taking longer to sell. For instance, homes in Nashville are staying on the market 19 days longer than a year ago, while properties in Miami and Orlando are seeing an average increase of 13 days. This trend is indicative of a cooling in buyer demand, which could contribute to softening prices in certain areas.
As of May 2025, the housing supply in the U.S. is still below the 6-month threshold that typically signals a buyer’s market, with 4.6 months of inventory available. However, this marks a shift toward more balanced market conditions. Buyers are benefiting from more options, more time to make decisions, and the opportunity to negotiate with sellers who are more willing to adjust on terms and price.
A Market in Transition
The current housing landscape seems to align with Realtor.com’s projections for 2025, which suggest that the market will become more evenly distributed between buyers and sellers for the first time since 2016. However, it’s crucial to note that the market is still grappling with a significant shortage of homes. There is an estimated national shortfall of about 4 million homes, a stark contrast to previous buyer’s markets that followed periods of overbuilding. This discrepancy means that while some metros may tilt toward a buyer’s market, others will continue to be tight.
What Does This Mean for Buyers and Sellers?
This ongoing shift in the U.S. housing market highlights the importance of local trends. Buyers in some metros may benefit from increased inventory and more favorable terms, while others will continue to see a competitive market. For sellers, the evolving environment could require more patience and flexibility, as homes are spending more time on the market and price adjustments become more common.
Ultimately, the U.S. housing market is moving toward a more balanced state, but affordability and regional disparities will continue to shape the market for the foreseeable future. As housing supply gradually increases, buyers and sellers alike will need to adapt to the changing landscape to make the most of emerging opportunities. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
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