Housing Inventory Remains Below Pre-Pandemic Levels as GSEs Inject $12.5B into MBS Market

Signal

The real estate market is showing signs of structural transformation across multiple fronts. Despite a 9% year-over-year increase in listings, 36 states remain below 2019 inventory levels, with major markets like Chicago showing 70% supply deficits compared to pre-pandemic norms. This inventory constraint is being actively managed at the federal level, with GSEs deploying significant capital ($12.5B in January) to stabilize mortgage rates. Meanwhile, regulatory frameworks are evolving, with Oregon pioneering new SRO housing regulations that could provide a template for affordable housing solutions nationwide. The combination of persistent inventory challenges, active GSE market participation, and emerging regulatory solutions suggests a market that's still searching for equilibrium but is seeing coordinated efforts to address systemic challenges.

Stories

Housing Inventory Still 70% Below Pre-pandemic Levels in Major Markets

While listings rose 9% year-over-year, 36 states remain below 2019 inventory levels. Chicago and Connecticut markets are approximately 70% below pre-pandemic supply levels.

Impact · Persistent inventory shortages continue to shape market dynamics, creating competitive pressure for buyers and potentially limiting transaction volume for real estate professionals.

Action · Develop strategies to source off-market properties and consider implementing a systematic approach to engage potential sellers in low-inventory areas.

Housing Inventory Still 70% Below Pre-pandemic Levels in Major Markets

GSEs Purchase $12.5B in MBS During January, Influencing Mortgage Rates

Oregon Implements New SRO Housing Rules in Legislative Reform

Six layers on this brief.