Inventory Is Making a Comeback in 2026

Housing Inventory Is Rising Again — And That’s Great News for Buyers

For the past few years, homebuyers have been dealing with the same frustrating problem: too many buyers and not enough homes.

That shortage made the market feel intense and exhausting — homes selling fast, bidding wars everywhere, and buyers feeling pressured to make huge decisions quickly.

But now, something important is happening.

Housing inventory is finally making a comeback, and depending on where you live, that could mean more options, more time, and less competition.

Inventory Just Hit Its Highest Level Since 2020

According to Realtor.com, the number of homes for sale in January was the highest it’s been since 2020.

That matters because it signals we’re slowly moving back toward a more typical housing market — something buyers haven’t experienced in years.

Now, to be clear: we’re not fully back to pre-pandemic inventory levels nationwide yet, and more homes for sale won’t magically “fix” everything overnight.

But even this improvement changes the experience of buying a home in a big way.

Why More Inventory Changes Everything for Buyers

When there are more homes for sale, buyers gain:

• More options (you’re not forced to “settle” as much)
  
  
• More time (less pressure to decide in one day)
  
  
• More negotiating power (especially when homes sit longer)
  
  

When inventory is low, the opposite happens:

• The market moves faster
  
  
• Competition increases
  
  
• Stress goes up
  
  

For years, the market has felt rushed, intimidating, and stacked in the seller’s favor.

But that’s finally starting to shift.

More Areas Are Getting Back to Normal

Inventory growth isn’t happening evenly everywhere — some markets are bouncing back faster than others.

According to Lance Lambert, Co-Founder of ResiClub:

• In January 2025, only 41 of the 200 largest metro areas were back to normal inventory levels.
  
  
• By the end of the year, that number jumped to 90 of the 200 largest metros.
  
  

That’s nearly half of the largest metro markets returning to more typical supply levels — and that’s a major improvement in a short period of time.

Inventory Is Expected To Keep Growing in 2026

Looking ahead, forecasts suggest housing inventory could rise another 10% this year.

If that happens, even more markets may return to normal inventory levels — and nationally, we could approach the inventory levels seen between 2017–2019 by later this year.

That’s a huge shift compared to what buyers have been dealing with since 2020.

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

“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...”

Translation: the market is starting to work with buyers again — not against them.

Bottom Line

Inventory isn’t fully back to normal everywhere — but it’s improving, and in many areas it’s already at or above typical levels.

If you’ve been waiting for a moment when you have more options and a little breathing room, this is the strongest setup buyers have had in a long time.

Want to know what this looks like in our local market and what it means for your home search?
Let’s talk.