Inventory Is Making a Comeback in 2026 — What That Means for Houston Buyers

By David Janssen – Broker/Owner, Janssen Realty Group
Houston Relocation & Luxury Market Specialist

A Major Shift Is Happening in the Housing Market

After several years of intense competition and limited options, inventory is finally making a meaningful comeback.

For buyers who felt rushed, pressured, or constantly outbid, this is significant.

According to data from Realtor.com, the number of homes for sale in January reached its highest level since 2020. That signals a slow but steady return toward more typical, balanced market conditions.

Nationally, we’re not fully back to pre-pandemic inventory levels yet. But the direction matters — and it’s improving.

Why Inventory Growth Changes the Game

When there are more homes available:

• Buyers have more options

• Buyers gain negotiating leverage

• Buyers can move with less urgency

• Sellers face more competition

When there aren’t enough homes?

The pressure ramps up quickly.

From 2020 through 2023, the market felt rushed, stressful, and intimidating because supply simply couldn’t keep up with demand.

Now, that dynamic is easing.

More Metro Areas Are Returning to Normal

Inventory growth isn’t happening evenly across the country — but momentum is building.

According to Lance Lambert, Co-Founder of ResiClub:

• In January 2025, only 41 of the 200 largest U.S. metro areas had returned to normal inventory levels.

• By the end of the year, that number had grown to 90 metros.

That’s more than double in roughly one year.

And projections show continued improvement.

Inventory Is Expected To Rise Another 10%

Forecasts suggest inventory could grow another 10% this year.

If that happens, national inventory levels may reach the range seen between 2017–2019 by the end of this year.

That’s important because 2017–2019 represents a more balanced, healthier housing market — not an extreme seller’s market and not a distressed market.

As Hannah Jones, Senior Economic Research Analyst at Realtor.com, explains:

“Housing market conditions are gradually rebalancing after several years of extreme seller advantage. Buyers are beginning to see more options and modest negotiating power as inventory improves…”

In other words — the market is beginning to work with buyers again, not against them.

What This Means for Houston Area Buyers

Here in the Houston market — including areas like:

• River Oaks

• West University Place

• Memorial Villages

• Tanglewood

• Bellaire

• Sugar Land

• Missouri City

• Sienna

We are seeing:

• More listings hitting the market

• Longer days on market compared to peak frenzy years

• More realistic pricing

• Greater willingness from sellers to negotiate

That doesn’t mean it’s a buyer’s market everywhere — but it does mean the environment feels more balanced and strategic.

For relocation buyers and executive families especially, this creates opportunity.

Bottom Line

Inventory isn’t fully back to normal nationwide — but it’s clearly moving in that direction.

And in some markets, we’re already there.

If you’ve been waiting for a moment when you have options, negotiating power, and breathing room, this may be the strongest setup buyers have seen in years.

If you’d like to understand what inventory looks like specifically in your price range and neighborhood here in Houston, let’s connect.

📲 Call or text me directly at 281-610-6826
📅 Or schedule a time at: https://calendly.com/davidjanssen

— David Janssen
Janssen Realty Group