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The U.S. housing market entered summer 2026 with continued progress toward balance. Inventory remains modestly above year-ago levels, but the pace of growth has slowed sharply compared with 2024 and 2025. Buyer demand held firm — contract volume rose year-over-year in May even as net new listings declined — and home prices stayed broadly stable. Months of inventory edged down to 4.9, and median days on market eased to 42. Together, these trends point to a more sustainable, balanced market environment as the U.S. heads into the second half of the year.
Inventory Growth Moderates as Supply Normalizes
Total single-family inventory rose 2.1% year-over-year in May, continuing the return to average historical levels even as the rate of new supply slowed. Compared with May 2024, inventory is now up 21.8% — but the year-over-year pace has cooled meaningfully versus 2024 and 2025.
Months of inventory stands at 4.91, indicating a neutral environment that is bordering on buyer-friendly territory. Median days on market eased to 42 days, down from 44 days one year ago, signaling that even with elevated supply, transactions are still clearing at a healthy pace.
Buyer Activity Remains Solid Even as Listings Decline
Buyer demand held up through May. 335,403 single-family properties went under contract — an increase of 2.6% year-over-year — even as net new listings fell 10.6% versus May 2025. The decline in net new listings was driven by both a 5.5% decrease in new listing volume and a 22.3% increase in removals.
Over the trailing 52 weeks, contracts totaled 2,939,325, up 1.7% year-over-year, while net new listings of 2,854,589 were down 4.3%. The pattern — fewer new listings paired with steady contract volume — reflects a market that is absorbing existing inventory rather than expanding it.
Prices Hold Steady with Late-Spring Seasonality
Single-family prices remained broadly stable in May. The median listing price was $462,457, down 2.2% year-over-year, while the median closed price rose 6.0% to $449,375. Month-over-month, the median listing price increased 0.5% and the median closed price rose 4.1%, reflecting typical late-spring price seasonality.
The median price-per-sqft of listed homes is $238.8 (down 1.8% YoY), and the median closed price-per-sqft is $243.9 (up 4.2% YoY). The sale-to-list price ratio sits at 98.5%, and price cuts are down 6.6% versus May 2025 — pulling back from the multi-year high observed in 2025.
Rental Market: Supply Tightens Sharply and Rents Ease
The single-family rental market saw inventory contract 20.3% year-over-year, and it is now 6.9% below May 2024 levels — a meaningful acceleration of the rental supply tightening trend we've tracked since late 2025. The median listed rent declined 3.7% year-over-year to $2,469, with rents up 0.9% month-over-month.
Sharply tighter rental supply paired with softer rents suggests landlords are pricing competitively even as far fewer units come to market — a continuation of the rebalancing underway across single-family rental inventory.
Condo Market: Firmly Buyer-Friendly with Softening Prices
The condo market — including townhomes and other single-family attached units — continues to run more buyer-friendly than the detached segment. Total condo inventory is up 0.5% year-over-year and up 24.1% versus 2024. Months of inventory stands at 6.03, firmly in buyer's-market territory, and median days on market held at 56 days, flat versus a year ago.
67,121 condos went under contract in May, a 1.0% decline year-over-year, while net new condo listings fell 12.8% — driven by a 7.9% decrease in new listings combined with an 8.6% increase in removals.
Pricing has softened more meaningfully on the condo side. The median listing price was $402,717, down 4.2% year-over-year, while the median closed price held essentially flat at $397,407 (up 0.5% YoY). The sale-to-list ratio for condos sits at 97.5%, and condo price cuts are down 11.5% compared with May 2025. In the condo rental market, the median listed rent fell 6.2% year-over-year to $2,287, while rental inventory is down 6.2% year-over-year.
Key May 2026 Highlights
All single-family figures below reflect Single-Family Detached (SFD) homes; condo metrics are summarized in the Condo Market section above.
- Net New Listings (SFD): 325,065 in May (down 10.6% YoY)
- Contracts (SFD): 335,403 in May (up 2.6% YoY)
- Inventory (SFD): +2.1% YoY; months of supply at 4.91
- Days on Market (SFD): 42 (down from 44 YoY)
- Prices (SFD): Listing –2.2% YoY ($462,457) | Closed +6.0% YoY ($449,375)
- Rental Market (SFD): Inventory –20.3% YoY | Median rent $2,469 (–3.7% YoY)
- Condo Market: Inventory +0.5% YoY | Months of supply at 6.03 | Listing prices –4.2% YoY
The Bottom Line
The May 2026 Market Pulse shows a U.S. housing market that is settling into a more sustainable equilibrium. Moderating inventory growth, steady buyer activity, and stable pricing are converging across both single-family and condo segments — with condos running noticeably more buyer-friendly than detached homes. As the market moves through summer, these conditions support a balanced environment for both buyers and sellers.
Explore the full May 2026 Market Pulse Report to access detailed data, trends, and regional breakdowns shaping today's housing market.
