Buyer Advantage: Housing Inventory Is on the Rise

The past few years have been tough for homebuyers, with rising home prices and higher mortgage rates making the search even more challenging. If you’re looking to buy, it’s understandable to worry about finding a home within your budget.

But there’s good news—housing inventory has increased significantly, both for existing (previously owned) homes and new construction. This boost in available homes is creating more opportunities for buyers.

1. More Existing Homes Are Hitting the Market

According to Realtor.com, the number of existing homes for sale jumped by an impressive 22% in 2024. And experts predict even more growth ahead, with inventory expected to rise another 11-15% by the end of the year. That means more choices and a better chance of finding the right home for you.

Here’s why this is great news for your home search—if you haven’t found a home that meets all your needs, more listings mean more choices. As inventory continues to grow, your chances of finding the perfect home improve. As Ralph McLaughlin, Senior Economist at Realtor.com, puts it:

“It could be a particularly good time to get out into the market . . . you’re going to have more choice. And that’s not something that buyers have really had much over the past several years.”

2. Newly Built Homes Make Up a Bigger Share of the Market

Recent data from the Census and the National Association of Realtors (NAR) shows that newly built homes now make up 31.1%—or about 1 in 3—of all homes for sale. That’s a higher share than usual (see charts below). But this isn’t due to overbuilding—homebuilders are simply working to make up for years of construction shortages.

More Affordable New Construction Than You Might Expect

The best part? Builders have been focusing on smaller, more affordable homes, meaning new construction might be more budget-friendly than you’d expect. While many assume that newly built homes come with a hefty price tag, the price gap between new and existing homes has narrowed. As CNET explains:

“If you live in an area where there’s a lot of new construction happening . . . you might be able to purchase a new house for a price similar to or even less than a pre-owned one.”

If you’ve been struggling to find a home within your budget, it’s worth asking your agent about new construction. Otherwise, you could be overlooking nearly a third of the available market.

Bottom Line

More inventory means more opportunities to find a home that fits your needs in 2025. Connect with a local agent to explore your options and see what’s available in your area.

If you’re buying a new construction home, having a knowledgeable realtor represent you is just as crucial as when purchasing a resale. What are the must-have features on your home wishlist? Let’s connect so we can find homes you’ll love!