BiggerPockets Daily
Homebuilders Sit On Most Inventory Since 2009
May 13, 2025
Spring 2025 sees homebuilders facing an inventory surge, the highest since 2009. Buyers now wield more power as unsold homes stack up, particularly in Florida and Texas. We'll dive into how this shift is changing market dynamics and what it means for investors. Additionally, there are interesting insights on negotiating better deals and the unique landscape for new builds in the Sunbelt, along with indicators suggesting a bright future for the multifamily sector.
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Quick takeaways
- Homebuilders are facing unprecedented unsold inventory levels that allow buyers to negotiate favorable deals and incentives.
- The current market shift toward buyers in regions like Florida and Texas underscores the importance of understanding local inventory dynamics for investors.
Deep dives
Current Trends in Home Building
Home builders are facing a challenging market, with demand notably lower than historical norms for this time of year. Companies like D.R. Horton and Lennar have reported a slower spring selling season due to affordability constraints and reduced consumer confidence. As a response, builders are significantly increasing incentives to stimulate sales, with Lennar spending up to 13% of the home's sale price on incentives, a stark contrast to previous levels. The excess inventory, especially in the Sunbelt regions, indicates that builders are currently outpacing demand, giving buyers more leverage in negotiations.
