California is almost out of its pandemic-era inventory hole

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California is almost out of its pandemic-era inventory hole

While national active housing inventory for sale at the end of March 2025 was still -20% below pre-pandemic March 2019 levels, on a year-over-year basis national active listings are up +29% between March 2024 and March 2025. This indicates that homebuyers have gained some leverage in many parts of the country over the past year.

One of the biggest year-over-year increases is happening in California—where active inventory for sale is up +50% year-over-year.

Despite the +50% year-over-year jump in active California housing inventory for sale—including both single-family and condos—California at the end of March 2025 still had -20% fewer homes for sale than in pre-pandemic March 2019.

But… more California housing markets are climbing out of that inventory deficit. And if the current trajectory holds, California could soon be out of its Pandemic Housing Boom era inventory hole.

Among California’s 36 major counties with at least 100,000 residents, 9 have more active housing inventory for sale in March 2025 compared to pre-pandemic March 2019. The other 27 major California counties still have inventory below pre-pandemic March 2019 levels.

In housing markets where active inventory for sale rises significantly, homebuyers are gaining leverage. In housing markets where active inventory for sale has shot up above pre-pandemic 2019 levels, homebuyers have gained considerable leverage relative to past years.

Homebuyers in San Francisco (in particular San Francisco proper’s condo market) had a lot more leverage recently than homebuyers in, say, Orange County.

America’s largest apartment owners

Here’s the National Multifamily Housing Council’s methodology: