What Everyone’s Getting Wrong About the Rise in New Home Inventory
You may have seen headlines saying “new home inventory is at its highest since the crash.” And if you lived through 2008, that can sound scary.
But here’s the truth: those clicky headlines don’t tell the full story. Let’s break it down.
1. New Homes Are Only One Piece of the Puzzle
Yes — new construction inventory is up. But that’s not the same as total housing supply.
Back in 2008, we had a true surplus of homes (new + existing) that flooded the market. Today, when you look at the full picture, overall inventory is still much lower than it was then.
2. Builders Have Been Playing Catch-Up
After the crash, builders hit pause. For 15+ years, they underbuilt, leaving us with a major housing shortage.
The result? Even though new construction is rising now, we’re still nowhere near “too many homes.” In fact, Realtor.com says it could take another 7.5 years to close the gap.
3. This Market Is Built on Different Fundamentals
Demand for homes is still strong.
Lending standards today are much stricter.
And supply is nowhere near the flood we saw in 2008.
Bottom Line
Just because you’re seeing more new builds doesn’t mean we’re heading for another crash. The numbers show today’s market is fundamentally different.
Finding ways to make your credit score better could help you get a lower mortgage rate. When you’re ready to get the process started, let’s connect.