Inventory Is Rebounding in 2026 — And That’s Good News for Buyers

For years, buyers have faced one major challenge: not enough homes for sale. Limited inventory created intense competition, fast-moving listings, and high-pressure decisions.

But that’s beginning to change.

Over the past year, housing inventory has steadily increased. In fact, according to Realtor.com, the number of homes for sale this January reached its highest level since 2020. While we haven’t fully returned to pre-pandemic norms nationwide, the shift is meaningful — and it’s reshaping the market experience.

More Markets Are Returning to Normal

The recovery isn’t happening evenly everywhere, but progress is clear.

Data from ResiClub shows that in early 2025, only 41 of the 200 largest metro areas had returned to typical inventory levels. By the end of the year, that number more than doubled to 90 metros.

That’s a significant improvement in a relatively short time — and momentum is continuing into 2026.

Inventory Is Expected to Grow Further

Forecasts suggest housing supply could increase by another 10% this year. If that happens, national inventory levels may approach what we saw between 2017 and 2019 by late fall.

In practical terms, that would mean a more balanced market — one where buyers regain modest negotiating power and have more time to evaluate their options.

As Hannah Jones, Senior Economic Research Analyst at Realtor.com, explains, the market is gradually rebalancing after years of strong seller advantage. Buyers are starting to see more opportunities and flexibility.

Inventory isn’t fully back to normal everywhere yet. But it’s moving in the right direction — and in some areas, it’s already there.

If you’ve been waiting for a market where you have:

• More options

• Less pressure

• Stronger negotiating potential

• 
  

This may be the most favorable environment buyers have seen in years.

The market isn’t “fixed,” but it is evolving. And for buyers, that shift could create real opportunity in 2026.

If you’re curious about what’s happening in your specific area, connect with a local real estate professional to get insights tailored to your market.

According to Realtor.com, the number of homes available for sale in January was the highest it’s been since 2020. Here’s why that’s such a big deal. Getting back to pre-pandemic levels signals a slow and steady return to what’s typical:

Now, it’s worth noting, nationally we’re not there yet – and having more inventory improving won’t suddenly “fix” the market. But the growth we’ve seen lately still changes how competitive the market feels.

• When there are more homes for sale, buyers gain time, options, and leverage.

• When there aren’t, the pressure ramps up quickly.

In the years since 2020, there weren’t enough homes for sale, and that made the market feel different. Rushed. Stressful. Intimidating.

But now it’s finally getting better.

A Growing Portion of the Country Is Getting Back to Normal

Depending on where you live, inventory growth is going to vary. Some places are bouncing back faster than others. According to Lance Lambert, Co-Founder of ResiClub, in January 2025, just a little over one year ago, only 41 of the 200 largest metros were back to normal inventory-wise. 

But around the end of year, almost half (90) of the largest 200 metro areas were back at or above typical levels. That’s a big improvement in roughly a year. And it’s not done yet. 

Inventory Is Expected To Keep Growing 

Looking ahead, forecasts suggest the number of homes for sale could rise another 10% this year, which means even more markets should join the list of places where supply has rebounded.

Here’s a graph that shows what an extra 10% would do for the market this year. You can see that projected growth (shown in the dotted line) hits inventory levels seen in 2017-2019 by roughly this fall (the gray lines). That means we may reach normal by end of year, nationally:

And that changes your home search in a good way. As Hannah Jones, Senior Economic Research Analyst at Realtor.com, puts it:

“. . . 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 . . .”

Inventory isn’t fully back to normal everywhere. But it’s moving in the right direction. And, in some areas, it’s already there.