Housing Markets Recovering in Surprising Urban Areas, With Buyers Securing Advantageous Positions
The U.S. housing market is witnessing a shift towards becoming more "buyer-friendly," with a growing number of cities reporting an increase in active housing inventory compared to pre-pandemic levels. According to a report from Realtor.com, several metropolitan areas have experienced double-digit percentage increases in active listings.
Leading the pack is Denver, Colorado, which has seen a staggering 100% increase in available homes compared to the 2017-2019 averages. Austin, Texas, follows closely with a 69% increase in active listings, while Seattle, Washington, has experienced a 60.9% growth in inventory.
These metros have seen the most dramatic growth in active housing supply, marking a strong rebound from the tight supply during the pandemic years. Other cities with significant inventory growth include San Antonio (+44%), Dallas (+30.5%), and Florida cities such as Lakeland Winter Haven (+79.6%), though Miami's increase was much smaller (+5%).
In total, nearly half of America's 50 largest metros now have more active listings than before the pandemic, with much of this growth occurring in the West and South of the United States. This inventory comeback reflects increased housing construction in these areas over the past six years and a easing of buyer demand due to affordability challenges, contributing to a market realignment.
The report also highlights eight states that had representation among the ten areas with the "most dramatic improvement in active inventory." San Francisco, Nashville, Orlando, Las Vegas, and Tuscon are among the top-10 metro areas with the largest gains in inventory, according to Realtor.com. Tuscon, in particular, has seen a 23% increase in active inventory compared to before the pandemic.
It's important to note that despite this positive trend, the U.S. is still contending with a supply gap of about 3.8 million homes, as of March. This shortage has been a persistent issue for several years, and it will take time for the market to fully recover.
In May, the U.S. had over one million homes on the market, a level not reached since the winter of 2019. As the housing market continues to evolve, it will be interesting to see how these trends develop in the coming months.
- The significant growth in active housing supply, as seen in cities like Denver, Austin, and Seattle, indicates a strong bounce back in the real estate markets.
- The U.S. finance sector may be affected by the current trend in the real estate markets, as nearly half of America's 50 largest metros now have more active listings than before the pandemic.
- Investing in real estate, particularly in metro areas like San Francisco, Nashville, Orlando, Las Vegas, and Tuscon, could become more viable due to the improvements in active inventory observed.
