In a development that could significantly reshape parts of the housing market, the inventory of fully built but unsold new homes in the U.S. has reached its highest level in 15 years. According to a new report from ResiClub, there were 119,000 unsold, completed new homes nationwide as of February 2025. That’s the most we’ve seen since the post-2008 recovery days of July 2009, when new home inventory peaked at 126,000.
🏗️ The Trend: Inventory Is Rising Fast
This spike reflects weaker-than-expected buyer demand, particularly in overheated markets where prices and supply have surged since the pandemic. Sun Belt metros—like Phoenix, Dallas, and parts of Florida—are leading the charge in excess new inventory, but this trend is beginning to ripple out to coastal markets like Los Angeles and Orange County, especially in high-density suburbs and fringe luxury markets.
Take a look at how inventory has evolved each February over the past seven years:
| Year | Unsold Completed Homes |
|---|---|
| 2018 | 63,000 |
| 2019 | 75,000 |
| 2020 | 77,000 |
| 2021 | 39,000 |
| 2022 | 31,000 |
| 2023 | 70,000 |
| 2024 | 88,000 |
| 2025 | 119,000 |
That’s a 283% increase from the low point in 2022.
🔍 What This Means for Buyers in Los Angeles
If you’re a homebuyer in LA, this moment could be a golden opportunity. Builders facing rising inventories are far more likely to offer aggressive incentives to close deals. Think:
- Interest rate buy-downs
- Closing cost credits
- Design upgrades or appliance packages
- Extended warranties or flexible move-in timelines
In a high-cost market like Los Angeles—where the median price of new homes exceeds $1.1 million in many neighborhoods—these incentives could represent tens of thousands of dollars in savings.
🏡 What This Means for Sellers
For homeowners considering listing their property this spring, it’s essential to recognize that new construction is becoming direct competition, especially in move-in-ready segments. Buyers have more choices now, and they’re weighing the value of a resale against a brand-new home with incentives.
Strategic pricing, thoughtful staging, and flexible terms will be key to remaining competitive in a crowded inventory environment. Sellers should also consider pre-listing inspections and minor updates to maximize appeal.
🤝 What This Means for Agents
For agents, this shift offers a new and growing source of business: partnerships with builders.
As inventory builds up, developers are increasingly open to co-brokering with real estate agents and offering competitive commission bonuses to bring buyers through the door. These relationships can yield multiple transactions and recurring business if nurtured strategically.
Some tips:
- Reach out to local builders about their current inventory and sales goals.
- Offer to host open houses or broker previews.
- Promote new construction listings on social and email campaigns.
- Position yourself as a resource for buyers navigating the pros and cons of new construction vs. resale.
📉 The Bigger Picture
This is a market in transition. After several years of undersupply and over-competition, we’re entering a new era where buyers have leverage, especially in the new construction space. As an agent, investor, or homeowner in the Westside Los Angeles real estate market, now’s the time to get strategic about pricing, timing, and negotiations.
📞 Contact Abdo Pierre Faissal for unparalleled real estate service.
📧 [email protected] | 📲 310-620-1038
Want help crafting a builder outreach email or listing strategy to compete with new homes? Let me know—I’ve got some ready-to-use templates just for you.