Building Inspection Services NAICS 541350

May 20, 2026 - Millions of Unoccupied Homes Kept off the Market

• The New York Times reports that, according to real estate investment services firm Flock Homes, about 7.2 million single-family homes are sitting vacant across the US. Many older homeowners choose not to sell because steep tax liabilities, including capital gains taxes, make it cheaper to hold properties than to list them. This trend could affect the building inspection industry by reducing transaction volume, limiting demand for pre-sale inspections, and shifting focus toward maintenance evaluations of aging, unoccupied homes. Data from Flock Homes shows that in major metros, carrying costs like taxes, insurance, and upkeep can remain far below potential capital gains and depreciation recapture taxes. Homes inherited by heirs are often valued on a stepped-up basis at current market values, nearly eliminating capital gains taxes, which further discourages older owners from selling.
• The housing market remains painfully slow, with high mortgage rates and elevated home prices keeping many buyers on the sidelines, according to The Wall Street Journal. Still, some homes are selling quickly, especially move-in-ready properties in the Midwest, the Northeast, and select other markets where supply is tight. Zillow data show homes under contract in March sold in a median of 19 days, compared with 56 days for all listings, a 37-day gap, and the widest for March since 2020. Buyers remain cautious about repair costs, insurance issues, and renovations, while some sellers continue to overprice homes based on past market highs. These conditions could increase demand for detailed inspections in the building inspection industry, as sellers aim to justify pricing and buyers prioritize homes with fewer repair risks, clearer condition reports, and reliable insurance prospects.

• Sales of existing U.S. homes increased by 0.2% in April 2026 from March and were unchanged year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Dr. Lawrence Yun said, "Despite mixed macroeconomic signals -including a record-high stock market and historically low consumer confidence - home sales were modestly boosted by the continued improvement in housing affordability. Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains." Yun added, "Multiple offers, though not as intense as a few years ago, are still occurring. At the same time, days on market are lengthening on average, implying that consumers are taking their time before making decisions."
• New single-family home sales rose 7.4% month-over-month and were up 3.3% year-over-year in March 2026, according to the US Census Bureau. March’s total new home sales reached 682,000 units. The National Association of Home Builders noted the uptick was due to moderating home prices and a lack of inventory in the existing home market. In March, the US median home price was $387,400, down 6.2% from $412,900 a year earlier. To address ongoing affordability constraints, builders have made strides toward offering more homes at the lower end of the price spectrum. In March, 20% of new homes were priced below $300,000. New home sales drive demand for building inspection services.