The housing market landscape is undergoing a significant transformation as inventory levels surge across major metropolitan areas, providing much-needed relief for prospective homebuyers who have faced years of limited options. According to the latest data from February 2025, ten key markets are leading this inventory expansion, with growth rates exceeding 30% compared to the same period last year.

Rocky Mountain High: Denver Leads the Pack

Denver, Colorado tops the list with an impressive 40.9% increase in housing inventory, even as typical home values remain elevated at $581,411. This dramatic expansion in available properties represents a fundamental shift for the Mile High City’s housing market, which has experienced constrained inventory for several years. The surge suggests that Denver’s rapid population growth may be stabilizing, allowing supply to catch up with demand.

Las Vegas follows closely behind with a 40.5% inventory increase, offering more optimistic prospects for buyers in a market where typical home values sit at $430,277. The Entertainment Capital’s housing market appears to be finding better equilibrium between supply and demand after years of intense competition among buyers.

California’s Coastal Comeback

California dominates the inventory growth rankings, claiming six of the top ten spots. San Diego leads the state’s contingent with a 39% inventory increase, though typical home values of $946,075 continue to present affordability challenges for many buyers. The significant inventory growth in America’s Finest City may signal that even premium coastal markets are beginning to see supply relief.

The San Francisco Bay Area shows particularly dramatic changes, with San Jose posting 36.2% inventory growth despite astronomical typical home values of $1,648,729. Meanwhile, San Francisco proper shows a 32.5% increase with typical values reaching $1,150,195. These inventory expansions in traditionally supply-constrained premium markets represent potentially game-changing developments for California homebuyers.

Los Angeles rounds out the California markets with a 35.5% inventory increase, though typical home values of $964,556 remain steep. The inventory growth across these major California metropolitan areas suggests a broader regional trend that could reshape the state’s notoriously competitive housing landscape.

Western Expansion Beyond California

Phoenix, Arizona claims the sixth position with 35.3% inventory growth and more moderate typical home values of $450,492. The Valley of the Sun’s significant inventory expansion, combined with relatively reasonable pricing compared to coastal markets, positions Phoenix as an increasingly attractive option for homebuyers seeking Western lifestyle amenities without California price tags.

Sacramento continues California’s strong showing with 34.6% inventory growth and typical home values of $578,290. The state capital’s inventory surge, combined with its position as a more affordable alternative to Bay Area markets, makes it an compelling option for buyers priced out of San Francisco and San Jose.

Riverside, California contributes another 33.5% inventory increase with typical home values of $585,739, further demonstrating the breadth of inventory growth across California’s diverse metropolitan markets.

Southern Representation

Atlanta, Georgia secures the final spot in the top ten with 31.4% inventory growth and typical home values of $376,983. The inclusion of Atlanta among these predominantly Western markets highlights that inventory improvements aren’t limited to any single region, though the Southeast’s representation remains notably limited compared to Western markets.

Market Implications and Buyer Opportunities

This substantial inventory growth across major metropolitan areas represents a significant shift from the severe supply constraints that characterized the housing market in recent years. For prospective homebuyers, these developments signal improved negotiating power, reduced competition, and potentially more time to make informed purchasing decisions.

However, the data also reveals the continued challenge of housing affordability, particularly in California markets where inventory growth coincides with home values that remain well above national averages. Markets like San Jose and San Francisco, despite their inventory improvements, continue to present formidable financial barriers for most buyers.

The concentration of inventory growth in Western markets, particularly California, suggests regional factors may be driving these changes. Potential contributors include shifting migration patterns, economic adjustments, and evolving work-from-home policies that may be reducing pressure on traditional high-cost metropolitan areas.

For buyers monitoring these trends, the inventory surge represents the most encouraging development in years, offering hope that the extreme seller’s market conditions of recent years may be moderating toward a more balanced marketplace.

For the most current housing market insights and trends, visit Zillow’s Spring Housing Market Update for comprehensive analysis and data.