Where Housing Inventory is Rising in U.S. Cities

Where Housing Inventory is Rising in U.S. Cities

A little Snitz prospective here. First off, I pulled down some data on housing inventory. It's still not large, especially compared to the 2008 recession. A few things are happening however.

• During the pandemic a ton of folks moved to the Sun Belt and found their cost of housing ramped up as interest rates skyrocketed. Then they got slammed by weather events and outrageous insurance costs. This provided incentives to take the money and run.

• Also as I predicted might be the case a year ago, rising interest rates have caused investors to pull back from buying homes. The rental payments no longer work at current high interest rates. Many owners have mortgages coming due (at higher rates) and need to sell.

The process is slow but the op for certain markets to see housing prices actually come down isn't bad.

Key Takeaways

U.S. housing inventory rose 26% year-over-year in July 2025, reaching its highest level since at least 2017.

Sun Belt and fast-growing metro areas saw the sharpest increases in homes for sale.

After years of historically tight housing supply, inventory levels across the U.S. are rebounding. More homes are coming onto the market, giving buyers greater choice and easing some of the pressure that defined the post-pandemic housing boom. This map highlights how housing inventory changed across major U.S. cities in July 2025 compared to a year earlier.

The data for this visualization comes from Homes.com.

Sun Belt Cities Lead the Inventory Surge

Several fast-growing Sun Belt metros top the list for inventory growth. Raleigh, North Carolina, saw the largest increase, with listings up 54.5% year over year.

Las Vegas, Miami, and Atlanta also posted gains above 35%, reflecting a rapid cooling from earlier housing booms.

Large Coastal Markets See Meaningful Gains

Major coastal cities are also seeing notable increases in housing inventory. San Diego’s listings rose 32.4%, while Los Angeles posted a 23.1% increase. Seattle, Sacramento, and Portland all saw gains near or above the national average.

Although inventory is rising, affordability challenges remain acute in these markets. Higher mortgage rates and elevated home prices continue to limit buyer activity.

In contrast, several Midwestern and Northeastern cities recorded more modest inventory growth. Chicago’s listings increased just 6.7%, while Minneapolis and San Jose saw gains below 10%. New York City’s inventory rose 17.6%, well below the national average.