Since the pandemic housing boom ended, the number of unsold newly built single-family homes in the U.S. has been growing, according to a recently launched index from the ResiClub blog. The Finished Homes Supply Index takes the number of unsold completed U.S. new single-family homes and divides that number by the annualized rate of U.S. single-family housing starts. Based on the index's calculations, in January 2024, there were 83,000 finished unsold single-family homes, and this number grew to 115,000 by January 2025. Most of this unsold inventory is concentrated in the South, while housing supply remains tight in the Midwest, Northeast, and in Southern California.
Reversely, active housing inventory for sale has grown the most in the Gulf region. Housing markets like Tampa, Punta Gorda, and San Antonio. These areas saw major price surges during the Pandemic Housing Boom, with home price growth outpacing local income levels. As pandemic-driven migration slowed and mortgage rates rose, markets like Tampa and Austin faced challenges, relying on local income levels to support frothy home prices. This softening trend is further compounded by an abundance of new home supply in the Sun Belt. Builders are often willing to lower prices or offer affordability incentives to maintain sales, which also has a cooling effect on the resale market. Some buyers, who would have previously considered existing homes, are now opting for new homes with more favorable deals. Read more