Housing Market Research Brief
Rise in New-Home Listings Does Little to Relieve the Supply-Demand Imbalance
Listings of newly built homes prop up for-sale inventory. The number of single-family houses available for purchase grew by 3.8 percent from May to June, a change of tides after listings steadily declined during the pandemic. Specifically, the number of new homes for sale increased at the fastest pace month over month in more than 50 years. This figure includes listings of houses that have not yet actually broken ground, though. Meanwhile the for-sale supply of existing homes remains extremely tight. Owners of single-family houses with mortgages at historically low interest rates have a reduced incentive to relocate. This reinforces the barriers faced by many entry-level and first-time buyers as the median price of a new home is notably higher than the cost of an existing dwelling. Newly built homes tend to be among the least affordable and are accounting for a greater share of listings, keeping the path to homeownership unattainable for a large cohort of renters.