Search

Leave a Message

Thank you for your message. I will be in touch with you shortly.

Browse Homes

The Truth About Newly Built Homes and Today’s Market

Beth Helvey April 8, 2025


Headlines are talking about the inventory of new homes and how we’re back at the levels not seen since 2009. And maybe you’re reading that and thinking: oh no, here we go again. That’s because you remember the housing crash of the late 2000s and you’re worried we’re repeating the same mistakes.

But before you let fear take hold, remember: headlines are designed to be clickbait. And a lot of the time, they do more to terrify than clarify. That’s because they don’t always give you all the context you need. So, let’s take a step back and look at what the data really says.

Why This Isn’t Like 2008

While it’s true the number of new homes on the market has reached its highest level since 2009, that’s not a cause for alarm.

Here’s the context that matters most. When the data is turned into a graph, it’s clear the amount seen in 2009 wasn’t the peak of oversupply – not even close. That high point came earlier in 2007-2008. If anything, 2009 was when the number of new homes being built was really starting to slide back down (see graph below):

a graph of a market growthThe overbuilding that contributed to the housing crash happened in the years leading up to 2008. Not in 2009. At that point, construction was already slowing down. So, saying we’ve hit 2009 levels isn't the same thing as saying we’re overbuilding like we did the last time.

Builders Have Actually Underbuilt for Over a Decade

Here’s some more data to prove it to you. After the crash, builders pulled production way back. As a result, they built far fewer homes than the market needed. And that was a consistent problem that lasted for over a decade. That long stretch of underbuilding created a major housing shortage, which is still a challenge today.

The graph below uses Census data to show the number of new homes built each year over the past 52 years. You can clearly see the overbuilding leading up to the crash (in red), the period of underbuilding that followed (in orange), and how we’re only now getting back to a more normal level of construction:

a graph of a number of units

Today’s situation is different. Builders aren’t overbuilding – they’re catching up.

In a recent article, Odeta Kushi, Deputy Chief Economist at First American, highlights this deficit and speaks to why the recent ramp-up in construction is actually good for today’s market, especially buyers:

This means more homes on the market and more options for home buyers, which is good news for a housing market that has been underbuilt for over a decade.”

Of course, like anything else in real estate, the level of supply and demand will vary by market. Some markets may have more newly built homes, some less. But, nationally, there’s nothing to worry about. This isn’t like the last time.

Bottom Line

No matter what you’re reading or seeing, the growing number of newly built homes on the market isn’t a red flag nationally – it's a sign builders are starting to make up for years of underbuilding. If you want to talk about what’s happening in our market, let’s connect.

Florida Real Estate Blog

Could Your Social Media Profile Be Hurting Your Chances of Getting a Mortgage?

These 8 Real Structures Inspired the Castles in Disney Films

Are You Saving Up To Buy a Home? Your Tax Refund Can Help

8 Ways to Size Up a Neighborhood Before You Buy a House There

5 Hidden Costs of House Hunting—Sneaky Little Expenses You Didn’t See Coming (But Totally Will)

Why You Don't Want To Skip Your Home Inspection

Seriously, Don't Skip It

The Truth About Newly Built Homes and Today’s Market

The #1 Thing Sellers Need To Know About Their Asking Price

Are “ADUs” Your Ticket to Smaller, More Affordable Housing?

Or to Start Your Income Property Journey?

Housing Market Panic?

Why You Shouldn’t Believe Every Headline (Or Chart) You See Online

Townhomes: A Smart Solution for Today’s First-Time Buyers

Selling Your First Home?

Here’s How Thinking Like a First-Time Buyer Can Help

A New Hotel Has Opened on Lido Key

Cirque St. Armands Beachside has replaced Lido Key’s Holiday Inn—and it’s a major upgrade.

Buyers Have More Negotiation Power

Here’s How To Use It

Why Pre-Approval Is More Important Than Ever

February 2025 Real Estate Market Report

Trends in Sarasota and Manatee Counties

Tiny Issues, Big Turn-Offs for Buyers

10 Small Fixes That Can Make or Break the Sale of Your Home

How Buying or Selling a Home Helps Your Local Economy

What You Need To Know About Homeowner’s Insurance

Planning Ahead: Putting Aside Money for Home Upkeep

What You Need to Know About Pre-Approval

Factors That Can Affect Your Preapproval

Is the Housing Market Starting To Balance Out?

It Is in Sarasota!

Selling Your Home? Here's Why More Deals Are Falling Apart

And How to Keep Yours on Track

Do You Know How Much Your Home Is Worth?

You May Want to Find Out.

Headed Back Into the Office?

You May Decide to Move

Sarasota Broke Rainfall Records

Sarasota just witnessed an extraordinary rainfall event yesterday, one for the record books.

A modern dining room with a black table and chairs. A vase with plants sits in the center of the table.
Ohana, on Longboat Key, Has Sold for $19.75 Million Cash

It’s probably part of why it fetched such a high price, setting a new record for tony Longboat Key.

Your Equity Could Make a Move Possible To Sarasota

Many homeowners looking to sell feel like they’re stuck between a rock and a hard place right now.

A modern kitchen with dark blue cabinets, a large marble countertop
Are You Ready For Hurricane Season in Sarasota?

Hurricane season started in Florida a few days ago and runs through November.

Work With Beth

I’d love to hear from you! Whether you’re buying, selling, or just exploring your options, I'm here to provide answers, insights, and the support you need. Contact me and start planning your next move.