Housing Inventory is Making a Comeback in 2026

After a prolonged period of intense competition among buyers for limited homes, the housing inventory is showing signs of recovery this past year. Depending on your location, this resurgence is expanding your options in a meaningful way.

According to Realtor.com, January marked the highest number of homes available for sale since 2020. This return to pre-pandemic inventory levels indicates a gradual shift back to what we consider typical in the real estate market.

While it's important to emphasize that we have not fully returned to normal on a national scale, the increase in inventory significantly alters the competitive landscape. Here’s how:

  • More Homes for Sale: An increased inventory provides buyers with more time, options, and leverage in negotiations.
  • Less Pressure: When inventory is low, buyers often feel rushed and stressed.

Since 2020, the scarcity of available homes has made the market feel fast-paced and daunting. Thankfully, conditions are improving.

A Growing Return to Normal

The recovery rate varies across the country. Some regions are rebounding quicker than others. Recent data from Lance Lambert, Co-Founder of ResiClub, reveals that just over a year ago, only 41 of the 200 largest metro areas had returned to normal inventory levels. Fast forward to the end of 2025, and almost half (90) of these metros reached or surpassed typical inventory levels—a remarkable improvement.

What’s Next for Inventory?

Looking ahead, forecasts predict a potential rise of another 10% in available homes this year. This growth could lead to even more markets reaching rebounding levels.

Visualize this potential growth: a projected 10% increase in inventory could align us with levels seen between 2017 and 2019 by late fall this year. Such enhancements are promising for buyers navigating the market.

As Hannah Jones, Senior Economic Research Analyst at Realtor.com, notes:

“...housing market conditions are gradually rebalancing after several years of extreme seller advantage. Buyers are beginning to see more options and modest negotiating power as inventory improves…”

This signifies that the market is beginning to work collaboratively with buyers rather than against them.

Conclusion

While inventory levels have not completely normalized everywhere, the upward trend is evident. In many areas, the situation is improving significantly.

For those who have been waiting for a moment of choice and more breathing room, this setup presents one of the best opportunities for buyers we’ve seen in years.

If you’re interested in understanding the nuances of our local market or need guidance tailored to your situation, don’t hesitate to reach out to us!