New home inventory hits 16-year high

Plus: Senate passes the ROAD to Housing Act

October 14, 2025

☀️ Happy Tuesday! Great to see you back.

Today's newsletter is 687 words, a 3-minute read.

1. New home inventory hits 16-year high

According to ResiClub, unsold new-home inventory rose to 124,000 homes — the highest level since July 2009, when it reached 126,000.

ResiClub notes that much of this inventory is concentrated across the Mountain West and Sun Belt regions, particularly in states like Texas.

Source: Census Bureau

2. Senate passes the ROAD to Housing Act

On Thursday, the Senate approved the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025, a bill introduced by Sen. Tim Scott and Sen. Elizabeth Warren.

The legislation includes more than 40 provisions intended to expand housing supply, simplify federal housing programs, and improve access to affordable mortgage credit.

Industry groups such as the Mortgage Bankers Association (MBA) and the National Association of Realtors (NAR) have expressed support for the bill’s passage.

"NAR applauds the Senate for passing this bipartisan legislation that addresses housing supply, affordability and homeownership pathways. At a time when homeownership increasingly feels out of reach, this legislation offers meaningful, pragmatic solutions to restore opportunity for millions of American families."

Shannon McGahn, NAR Executive Vice President and Chief Advocacy Officer

A MESSAGE FROM DAVE YOUR MORTGAGE GUY

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3. Catch up quick

📰 LendingTree CEO dies in ATV accident. (NBC)

📍 Fort Worth has the largest average home size among major cities. (Badeloft)

🏘️ Fannie Mae is allowing rental income from accessory dwelling units. (FannieMae)

⚠️ What the government shutdown means for commercial real estate. (CNBC)

A MESSAGE FROM MONEY.COM

Sticking with the same home insurance could cost you

Home insurance costs are rising fast, up nearly 40% nationwide in just the past few years. With premiums changing constantly, sticking with the same provider could mean overpaying by hundreds of dollars. Shopping around and comparing multiple insurers can help lock in better rates without losing the protection your home needs. Check out Money’s home insurance tool to shop around and see if you can save.

4. Texas tops in bank-owned homes

According to ATTOM via BiggerPockets, there were 4,077 bank-owned properties (REOs) recorded nationwide in August—up 5.46% from the previous month and a striking 41.12% from a year ago.

The increase signals that more homes are completing the foreclosure process and returning to bank ownership, expanding the supply of distressed inventory.

Texas led the nation with 476 REOs, marking a 186.75% year-over-year spike—the largest in the country. Major metros such as Dallas, Houston, and San Antonio are seeing increased bank-owned listings, positioning the state as a key market for investors seeking entry points.

5. Texas metros named the most renter-friendly cities

According to moveBuddha, Texas claimed the top two spots for renter-friendly metros in the U.S. Frisco (#1) and Austin (#2) lead the list, offering cities where renting is significantly more accessible than buying.

In Frisco, it would take about 29 years of average rent payments to buy a typical home, a price gap 61% wider than the national average.

Source: moveBuddha

6. 82% of Americans use AI for housing information

A new Realtor.com report shows that AI tools are becoming mainstream in real estate, with 82% of home shoppers using them for market insights. ChatGPT (67%) and Gemini (54%) are the most popular platforms, as buyers increasingly embrace personalized search features.

  • Despite growing tech adoption, real estate agents remain the most trusted and accurate source of housing information, cited by 62% of respondents—just ahead of AI at 61%.

Social media is also a key research channel, with nearly 90% of buyers using it in their search. YouTube (73%) and Facebook (57%) lead overall, while 76% of Gen Z turn to TikTok more than any other generation.

🤔 Related News: 46% of real estate agents aren’t using AI. (Kaplan)

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