During the Pandemic Housing Boom—from summer 2020 through spring 2022—active listings in most U.S. housing markets plummeted. Surging buyer demand absorbed nearly every property that hit the market, giving sellers unprecedented control.
Fast forward to mid-2025, and the landscape is evolving. In a growing number of metros, active inventory has rebounded to pre-pandemic 2019 levels, largely due to affordability pressures that have tempered buyer demand. These markets are now where homebuyers enjoy the most leverage and the widest range of options.
Nationally, active listings at the end of July 2025 remained 11% below July 2019 levels. However, more regional markets are crossing that threshold each month:
Many of these 80 markets are concentrated in Sun Belt states such as Florida, Texas, Arizona, and Colorado.
The softest housing markets—where buyers now hold more negotiating power—are often located along the Gulf Coast and in the Mountain West. Many of these regions were among the most sought-after destinations during the pandemic, with rapid home price growth outpacing local income levels.
As pandemic-driven migration slowed and mortgage rates surged, these boomtowns, including Cape Coral, FL and San Antonio, TX, faced a stark shift. With fewer incoming buyers, they had to rely on local purchasing power to sustain elevated prices—an increasingly difficult proposition.
Adding to the pressure, a substantial pipeline of new construction in the Sun Belt has given builders room to adjust. Incentives such as price reductions and affordability packages have not only boosted new-home sales but also applied downward pressure on the resale market as some buyers shift away from existing homes in favor of newly built properties.
In contrast, many Northeast and Midwest markets saw far less pandemic migration and have minimal new-home construction underway. This limited exposure to the post-pandemic demand shock has kept active inventory tight, sustaining a seller’s market in those regions.
Broadly speaking, the relationship between inventory levels and price trends over the past three years is clear:
As more metros cross the pre-pandemic inventory threshold, buyers in those regions can expect improved negotiating conditions, while sellers may need to adjust expectations accordingly.