Housing Inventory Is Rising Fast. What That Means for Your Home Search.
Remember the housing market of 2021 and 2022? Homes selling in hours. Dozens of offers on every listing. Buyers waiving inspections just to have a shot. It felt like the deck was permanently stacked against anyone trying to purchase a home.
That era is over.
Active listings across the country have climbed to over 912,000 as of January 2026, up 10% year over year and rising for 27 consecutive months. Nationally, inventory still sits about 17% below pre-pandemic 2017-2019 norms, but the trajectory is clear and improving. In 17 states, including Texas, Florida, Arizona, and Colorado, inventory has already returned to or surpassed pre-pandemic levels, and many local markets are starting to feel genuinely balanced again.
How We Got Here
The inventory crunch was driven by a perfect storm. Record-low mortgage rates during the pandemic fueled a buying frenzy. At the same time, homeowners who locked in those low rates had zero incentive to sell. New construction slowed during COVID and took years to ramp back up. The result was a market with far more buyers than available homes.
Fast forward to today, and several of those pressures have eased. More homeowners are listing as the lock-in effect fades. Builders have ramped up production, with about 40% of them now offering price cuts and incentives like rate buydowns on new construction. And buyer demand, while healthy, is no longer at the fever pitch it was during the pandemic years.
Realtor.com's 2026 National Housing Forecast projects existing home inventory to rise nearly 9% year over year in 2026, adding even more breathing room for shoppers.
What More Inventory Means for Buyers
More homes on the market changes the entire dynamic of a home search. Here is what that looks like in practice.
You have more time. Instead of scrambling to submit an offer within 24 hours, you can tour multiple homes, sleep on it, and make a thoughtful decision.
You have more leverage. Sellers are more willing to negotiate on price, cover closing costs, make repairs, or offer other concessions when their home is not the only option in the neighborhood.
You have more choices. Whether you are looking for a starter home, a forever home, or an investment property, the selection is broader than it has been in years. You are less likely to feel pressured into settling for something that does not truly fit.
A Word of Caution
More inventory does not mean the market has become a free-for-all for buyers. Well-priced homes in desirable locations still move quickly. And while the days of 20-offer bidding wars are mostly behind us, popular listings can still attract multiple interested parties.
The difference is that you no longer need to panic. You can be strategic, do your homework, and negotiate from a position of strength.
The Bottom Line
The housing market is more balanced than it has been at any point since the pandemic frenzy. While national inventory has not fully recovered to pre-pandemic levels, the direction is unmistakable, and in many Sun Belt and Mountain West markets, the selection is already back to normal or better. If you sat out the past few years because the competition felt overwhelming, it is worth taking another look.
Curious what is available in your area right now? Let's connect. I can walk you through the current inventory and help you find homes that match your budget and priorities.