Looking to Move? These Cities Have the Most Options for Housing

If you're on the hunt for a house right now, you likely already know how difficult it is to find what you're looking for. But now there's some concrete data to back up the current frustration of home buyers looking for houses.

Redfin released data this month showing that there are 28% fewer homes for sale in the first half of this year than there were over the same period in 2019. That's a massive decline in such a short amount of time.

If you're on the hunt for a new home, there are a few places across the country that may have slightly more housing options.

Cities with the most housing options

These are the places with the most options for home buyers, according to Redfin's analysis of the 50 most-populous cities across the U.S.:

• Newark, New Jersey
• Austin, Texas
• Nashville, Tennessee

Only 14 of every 1,000 homes changed hands in the first half of this year. The cities listed above had slightly higher turnover rates, making it potentially easier to find a home compared to other cities.

For example, Newark had the most turnover with 24 homes changing hands for every 1,000. Nashville was close behind with 23 and Austin followed with 22.

The report laid out a few reasons why a couple of these cities have better-than-average inventory. Austin and Nashville experienced a boom in housing buildings before the pandemic, which has helped to provide more housing options now, Redfin's report said.

While these cities may have slightly better inventory than the rest of the country, it's worth mentioning that there are still far fewer homes to choose from in these locations than in 2019.

Blame interest rates and not enough home building

Redfin noted that the supply of homes is at a record low. Just 1% of all of the houses in the country changed hands in the first half of 2023 -- and mortgage interest rates are partially to blame.

Homeowners who took advantage of record-lower interest rates in 2020 and 2021 aren't keen to give up their low mortgage payments. They're staying put, or renting them out, which is keeping sales inventory low.

That problem has been made worse by the fact that the U.S. already had far fewer homes than needed even before remote work and low interest rates caused a housing boom. Redfin noted that Freddie Mac said back in 2018 that 2.5 million homes needed to be built to keep up with housing demand.

All of those houses weren't built before the housing boom, though, adding to the housing inventory crunch.

What to do if you're looking for house

If all of this is a bit of a bummer, I'm right there with you. The rapid rise in interest rates, coupled with a lack of inventory, have helped sideline me in my housing hunt right now.

But if you're determined to buy a house no matter the market, then there are a few things you can do to make the process a little better. Building up your savings, lowering your monthly debt obligations, and improving your credit score will all help you get ready for the big purchase.

Additionally, shopping around to find the best mortgage lender could be more important than ever. Not all lenders will charge you the same interest rate, some have different fees, and others may even offer a free refinancing option, which could come in handy when interest rates drop.

All of this means that while you're taking the time to find the best house, also take the time to find the best lender. While you can't do much to change the housing market, getting your personal finances in order and searching for a lender that meets your needs are well within your control.