Why did the growth rate of housing inventory drop by half this year?

HousingWire
Published: December 21, 2025
Pricing & Profitability

Summary

The growth rate of housing inventory has slowed down this year compared to earlier in 2025. This impacts STR hosts as it affects the overall housing market, potentially influencing demand and pricing. While the article doesn't give a specific action, it is important to stay updated on market changes.

Key Insights

  • For 2025, the 10-year yield ranged from 3.87% to 4.79% and mortgage rates ranged from 6.12%-7.26%.
  • Mortgage spreads have improved by 0.49% in 2025.
  • The latest inventory growth percentage is now down to 13.54%, which is still positive but not as strong as the 30%+ growth seen earlier in 2025.
  • New listings growth peaked late May, with new listings data trending between 80,000-100,000 during any season peak period every year being considered normal pre-COVID (2013-2019).

Action Items

  • Monitor local market trends to adjust pricing strategies based on inventory, mortgage rates, and the 10-year yield fluctuations.
    Effort: low
    Impact: medium

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