Why is this important?

Housing inventory is the key measure of the supply of available homes on the market, and drastically affects the status of the real estate market. Inventory includes both new construction and the sale of existing housing. In an area with high demand for housing, but low available inventory, housing prices increase and homeownership becomes less attainable for many households with stiff competition [i].  When there is high housing inventory, the housing market favors buyers with greater opportunities for negotiation and lower prices.

While wealth creation from the sale of a home is an opportunity for sellers, in a market with low inventory, many sellers are hesitant to put their home on the market as they are unsure if they will be able to find a new home within their budget once they sell theirs [ii].


[i] Lehner, Josh. “Housing Inventory.” Oregon Office of Economic Analysis. 17 December 15. Web.  28 June 2017. <>.

[ii] Ramirez, Kelsey. “Here’s Why the Housing Market Continues to Struggle with Low Inventory.”  Housingwire. 18 April 2017.  Web. 28 June 2017. <>.