Executive Summary
The U.S. housing market’s key shift in 2024 was supply outpacing demand. For-sale inventory jumped +15% year-over-year through November while sales fell -7%, creating a current +22% supply-demand gap. In response, sellers have increased price cuts, with 38% of today’s listings showing reductions compared to 37% a year ago.
That’s the national picture. At the regional level, trends diverged in 2024:
- Florida Led Southeast Correction: Supply-demand gaps topped +70% in Tampa, while nearly 1 in 2 homes took price cuts across major Florida metros. The region’s once-hot markets showed how quickly conditions can reverse when affordability challenges and rapidly expanding inventory collide.
- Texas Reset Through Price Discovery: Like Florida, Texas markets sustained supply-demand gaps well above the national average. Austin’s path—stabilizing supply growth paired with aggressive price cuts—may preview how other high-growth markets find equilibrium: through motivated sellers discovering clearing prices at lower levels.
- Midwest Defied Gravity: Detroit (-8%), Chicago (-0.3%), and Cleveland (+1%) achieved rare negative or near-zero supply-demand gaps, driven by limited supply and resilient buyer demand. Modest price cuts around 33% of inventory supported steady price growth across the region.
- Coastal Markets Show Enduring Strength: Mature coastal markets like New York (+11%), Boston (+9%), San Francisco (+10%), and Los Angeles (+15%) maintained tight supply-demand gaps and minimal price cuts throughout 2024. Supply constraints and willing buyers shielded these markets from broader turbulence.
Figure 1 – a national map of supply-demand gaps and price cuts – highlights the diverging regional responses to 2024’s market dynamics:
The U.S. housing market’s key shift in 2024 was supply outpacing demand. For-sale inventory jumped +15% year-over-year through November while sales fell -7%, creating a current +22% supply-demand gap. In response, sellers have increased price cuts, with 38% of today’s listings showing reductions compared to 37% a year ago.
That’s the national picture. At the regional level, trends diverged in 2024:
- Florida Led Southeast Correction: Supply-demand gaps topped +70% in Tampa, while nearly 1 in 2 homes took price cuts across major Florida metros. The region’s once-hot markets showed how quickly conditions can reverse when affordability challenges and rapidly expanding inventory collide.
- Texas Reset Through Price Discovery: Like Florida, Texas markets sustained supply-demand gaps well above the national average. Austin’s path—stabilizing supply growth paired with aggressive price cuts—may preview how other high-growth markets find equilibrium: through motivated sellers discovering clearing prices at lower levels.
- Midwest Defied Gravity: Detroit (-8%), Chicago (-0.3%), and Cleveland (+1%) achieved rare negative or near-zero supply-demand gaps, driven by limited supply and resilient buyer demand. Modest price cuts around 33% of inventory supported steady price growth across the region.
- Coastal Markets Show Enduring Strength: Mature coastal markets like New York (+11%), Boston (+9%), San Francisco (+10%), and Los Angeles (+15%) maintained tight supply-demand gaps and minimal price cuts throughout 2024. Supply constraints and willing buyers shielded these markets from broader turbulence.
Figure 1 – a national map of supply-demand gaps and price cuts – highlights the diverging regional responses to 2024’s market dynamics:
