Housing Inventory Is Rebounding in 2026

After years of intense competition caused by limited housing supply, the market has been steadily shifting. Over the past year, the number of homes for sale has grown, and depending on your location, that increase could significantly expand your choices.

January marked the highest level of homes for sale since 2020. That milestone matters because it signals progress toward more typical, pre-pandemic inventory levels. While the national market hasn’t completely returned to normal—and added supply won’t instantly solve every challenge—the recent gains are already easing the competitive pressure buyers have felt.

When inventory rises, buyers gain more time to decide, more properties to consider, and greater negotiating power. When supply is tight, the opposite happens—decisions feel rushed, competition intensifies, and the process can become overwhelming. Since 2020, limited inventory created exactly that kind of high-pressure environment. Now, conditions are gradually improving.

More Markets Are Returning to Balanced Conditions

Inventory growth varies by region, with some areas recovering faster than others. Data shared by Lance Lambert, Co-Founder of ResiClub, shows that in January 2025, only 41 of the 200 largest U.S. metro areas had returned to normal inventory levels. By year’s end, that number had climbed to 90—nearly half. That’s substantial progress in just one year, and the trend is continuing.

Supply Is Projected To Keep Increasing

Forecasts suggest housing inventory could climb another 10% this year. If that happens, even more markets may reach balanced supply levels. Projections indicate that by fall, national inventory could approach the levels seen between 2017 and 2019—effectively signaling a broader return to normal conditions by the end of the year.

In short, the housing market is starting to feel more buyer-friendly again.

Bottom Line

While inventory hasn’t fully normalized nationwide, it’s clearly trending in the right direction—and some markets have already reached balanced conditions.

For buyers who have been waiting for more options and less pressure, this may be the most favorable environment we’ve seen in years.