Housing Market Shift: Inventory Catapults Back, Buying Opportunities Grow

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 31 March 2025

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

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Summary

Home prices are falling fast in some prime real estate markets across the country while others remain stubbornly stuck. What’s the defining factor between a stable housing market and one where sellers are actively cutting prices? Housing inventory! This metric defined the 2020 - 2022 run-up in home prices, but the rubber band of demand is snapping back as buyer power grows, housing inventory rises, and investors get even better buying opportunities. Remember when people said, “I’ll buy when prices drop”? Well, now might be the time. ResiClub’s Lance Lambert joins us to provide a holistic view of housing inventory, prices, demand, and emerging opportunities. Lance walks through the most up-to-date data on where housing inventory is rising fast, where prices are quickly declining, and which markets are holding on as sellers remain in control. We’ll also talk about why homebuilding costs are about to JUMP and the reason Warren Buffett sold his homebuilding stocks shortly after buying them. Will construction slow down, limiting new inventory and leading us back into ultra-low supply? If so, this could push home prices higher, creating a prime opportunity for real estate investors. In This Episode We Cover US real estate markets seeing the most and least new inventory, and where prices are falling Is spiking inventory a worrying sign for the housing market, or are we merely normalizing? What to look at in your housing market to forecast whether prices will rise or fall Why are homebuilding costs about to JUMP, and could this lead to even more inventory problems? The new housing trend: Older renters, but could this mean more demand for rentals? And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Sign Up for the On the Market Newsletter Find an Investor-Friendly Agent in Your Area Dave's BiggerPockets Profile ResiClub: The cost breakdown for constructing a single-family home in 2024 ResiClub: Did Warren Buffett see this coming? Homebuilder margins face pressure in 2025 ResiClub: The vanishing young homebuyer: Median first-time homebuyer age jumps from 28 in 1991 to 38 in 2024 Inventory Is Key to a Stable Real Estate Market—Will It Recover? Join Lance’s Newsletter Grab Dave’s Book, “Real Estate by the Numbers” Jump to topic: (0:00) Intro (1:27) Hottest and Coldest Markets (8:00) Should We Be Worried? (11:00) Where Prices Are Dropping (14:54) What to Look For In YOUR Market (17:39) Homebuilding Costs To JUMP (21:48) Developer Profits Shrink (24:11) Older Renters, Better for Investors Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-308 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey, everyone. Welcome to the On the Market podcast. This is Dave Meyer here. There's an episode of the
0:11.3	Bigger Pockets podcast that we just recently ran that I think is a great episode for our audience
0:18.4	here on On the Market. It's an interview I did with Rezi Club's Lance
0:23.1	Lambert. He's actually been on The Market several times before. And if you know anything about
0:28.3	him, Lance is a data journalist. He runs his company, Resi Club, where he tracks all sorts of
0:33.8	real estate data in a really cool way. It's very visual and super helpful in understanding
0:38.5	some of the biggest trends. And in this conversation I had with Lance, we go in depth about
0:44.7	inventory and why comparing inventory levels to last year is kind of useless. And comparing
0:50.6	inventory levels back to 2019, which was the last time the housing market was even a little bit normal, is actually much more useful.
0:57.9	And Lance is going to use that framework to help us understand which markets are turning into good buyers markets and the markets where sellers still have the power.
1:06.2	And I couldn't resist because I had Lance here.
1:08.0	After we talked about inventory, I picked his brain a little bit
1:11.0	about construction trends and how rising costs and shrinking builder margins might impact
1:16.5	the future of single family construction and how the median age for first time homebuyers
1:21.5	has shifted and how that shift may impact rental demand in the future. Let's bring on Lance.
1:29.0	Lance, welcome to the Bigger Pockets podcast. Thanks for joining us. Thank you for having me, Dave. Housing, housing, housing,
1:33.4	there is always so much going on in the U.S. housing market. There is so much going on, and you do
1:38.2	such a good job of summarizing and visualizing everything that's going on. I'm a charts geek,
1:43.9	and you put out some of the best charts, some of the best heat maps, everything going on. I'm a charts geek and you put out some of the best
1:45.4	charts, some of the best heat maps, everything out there. I'm excited to have you here.
1:49.2	Yeah, and really excited too. I think bigger pockets, you have a huge audience and in particular,
1:54.5	Dave, I think you put out really good smart content. Oh, thank you. I really appreciate it.
	...

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