Homebuyers Lead in 38 Metros, Increasing From Last Year’s 29
A new report from Redfin reveals a notable shift in the U.S. housing market, with buyers gaining increasing leverage across many major metropolitan areas. In March, 38 of the most populous metro areas were classified as buyer’s markets, a significant rise from 29 during the same period last year. At the same time, the number of seller’s markets declined to just five, down from nine in 2025. This change highlights a growing imbalance between supply and demand, with more homes available than there are active buyers.
The analysis, which examined 49 of the 50 largest metro areas in the country (excluding one due to insufficient data), defines a buyer’s market as one where sellers outnumber buyers by more than 10%. Conversely, a seller’s market exists when buyers exceed sellers by more than 10%, while anything within that range is considered balanced. Based on these criteria, the current housing landscape strongly favors buyers in a majority of major U.S. cities.
At a national level, the gap between sellers and buyers has widened considerably. In March, there were approximately 43.1% more home sellers than buyers, equating to about 600,168 additional sellers in the market. This marks a sharp increase from the 28% gap recorded a year earlier and comes close to the highest level ever observed since records began in 2013. The peak disparity occurred in December 2025, when the gap reached 45.2%. Such a wide margin underscores the extent to which supply has begun to outpace demand.
When there are significantly more sellers than buyers, the balance of power typically shifts toward buyers. With more options available, buyers can negotiate more aggressively on price, terms, and conditions. However, this advantage is largely limited to those who can afford to participate in the market. High home prices, rising borrowing costs, and broader economic uncertainty have discouraged many potential buyers, contributing to the current imbalance.
In markets like Austin, Texas, where sellers exceed buyers by over 100%, this trend is especially visible. Real estate professionals note that buyers have become increasingly selective, often prioritizing move-in-ready properties and showing little urgency to make concessions. Many are willing to wait for the right opportunity, knowing that ample inventory gives them flexibility and choice.
Interestingly, the slowdown in buyer activity is also influencing seller behavior. The number of active homebuyers in March was estimated at around 1.39 million, only slightly above the record low seen at the start of the COVID-19 pandemic in April 2020. This figure represents a 10% decline compared to the previous year, indicating a sustained drop in demand. Meanwhile, the number of sellers stood at approximately 1.99 million, the lowest level in a year but still slightly higher than last year’s figures.
Faced with weaker demand, some homeowners are choosing to delay or withdraw their listings altogether. Properties that remain unsold for extended periods are often removed from the market, while others are never listed in the first place due to concerns about achieving desired prices. At the same time, there are signs that some sellers are preparing to re-enter the market, anticipating a seasonal increase in demand during the spring months.
Among all metro areas, Miami stands out as the strongest buyer’s market, with an estimated 148% more sellers than buyers. Other cities experiencing similar conditions include Nashville, Austin, San Antonio, and Las Vegas. These markets have seen a surge in housing supply relative to demand, creating favorable conditions for buyers.
A key factor behind this trend is the rapid growth experienced by Sun Belt regions during the pandemic. Cities in the South and West attracted large numbers of new residents, particularly from more expensive parts of the country. In response, homebuilders significantly increased construction activity to meet rising demand. However, as market conditions shifted and affordability challenges intensified, demand slowed, leaving a surplus of available homes.
New construction plays a critical role in shaping housing market dynamics, as it directly impacts the balance between supply and demand. Regions such as the South and West have historically issued the highest number of building permits, contributing to greater housing availability. In contrast, the Northeast and Midwest tend to have lower levels of new construction, which can limit supply and sustain seller’s market conditions in certain areas.
States like Florida and Texas, in particular, have led the nation in homebuilding activity. While this has helped address housing shortages in the past, it has also contributed to the current oversupply in some markets. In Florida, additional factors such as rising insurance costs, increasing homeowners association fees, and the impact of natural disasters have further influenced housing dynamics. These challenges have prompted some residents to relocate, adding to the inventory of homes for sale.
The case of Miami illustrates how multiple factors can converge to create a strong buyer’s market. The city has a high concentration of condominiums and ongoing development projects, which contribute to a larger pool of available properties. Combined with affordability pressures and shifting demand, this has resulted in a market where buyers have significant negotiating power.
Overall, the latest data points to a housing market that is increasingly tilted in favor of buyers across many major U.S. metros. While this creates opportunities for those ready and able to purchase homes, broader economic conditions continue to limit participation. As supply remains elevated and demand subdued, the balance of power is likely to stay with buyers in the near term, particularly in regions with high levels of new construction and slower population growth.
Source Link:https://www.businesswire.com/
