Unsold new home inventory reaches highest level since 2009 as builders adjust strategies

The number of unsold new single-family homes reached 113,000 in October 2024, the highest since August 2009. This increase follows the end of the pandemic housing boom in 2022, raising questions about market normalization and builder strategies. Meritage Homes CEO Phillippe Lord stated that the rising inventory is intentional, aimed at meeting demand for move-in ready homes. He anticipates a strong selling season in spring 2025, despite the increased inventory levels. Housing analysts have mixed views. Some see the inventory rise as a positive sign of demand, while others suggest it may lead to discounts or a slowdown in construction, particularly in Texas and Florida, where inventory is highest.