You may have seen headlines saying new home inventory is at its highest level since the crash. For anyone who remembers 2008, seeing construction rise again can feel unsettling.
But here’s what matters: not everything online tells the full story. A closer look at the data — and the right perspective — shows a very different picture.
Why This Isn’t Like 2008
Yes, the number of new homes on the market has grown. But new builds are only one part of the equation. To see what’s really happening, we have to look at both new homes and existing homes.
When we put those numbers together, total inventory is still far below the levels we saw leading up to the crash. In other words, supply today looks nothing like it did back then.
Builders Haven’t Built Enough Homes for Over a Decade
After 2008, builders pulled back. For more than 15 years, they didn’t build enough homes to meet demand. That long stretch of underbuilding created the shortage we’re still navigating today.
Builders Aren’t Overbuilding — They’re Catching Up
Now, we’re finally starting to see progress. But the gap is wide. Experts estimate it could take over seven years of steady building to close it. That means even with growth, the market is far from oversupplied.
Of course, real estate is always local. Some areas may feel more balanced than others. But on a national scale, this is nothing like the last time.
Bottom Line
More new homes on the market doesn’t mean a crash is around the corner. The fundamentals are different, and buyers and sellers today should feel confident moving forward.
Every LA neighborhood has its own story. If you’d like a tailored update on how today’s housing trends impact your home or your next move, reach out—I’ll send you insights customized for your world.
