The Age of American Real Estate Housing Stock is Getting Older & Older
An aging housing stock encourages renovating old real estate as opposed to selling and moving into newer real estate. There has been a continuous incline to this effect, saving time and space in today’s towns and cities. Americans are becoming more and more comfortable with staying in their older home and remodeling it, as opposed to buying a brand new home. In fact, the average age of homeowner housing increased to 37 years in 2015 from 31 years about ten years ago.
As of 2015, on average, more than half of the American homeowner’s housing stock was built before 1980, and 38% of those built before the 70’s. The real estate of homeowners constructed after 2000 make up only a mere 19% of the homeowner housing stock, with real estate built after 2010 accounting for only a measly 3% of homeowner housing stock.
As for the share of housing that was built 45 years ago or earlier, the number of these homes have increased significantly from 32% in 2005 to more than 38% in 2015. Naturally, the share of new construction built within the last five years declined to 3% in 2015, where as it was hitting 9% ten years earlier in 2005.
According to the 2015 American Census, homeowners with higher total family incomes tend to live in newer residential areas, meaning they have been built in 2010 or beyond. The average family income for homeowner’s real estate built after 2010 was $121,577, which is higher than the $86,328 average family income for those living in real estate built before 1969. Additionally, younger homeowners are more likely to live in newer real estate.
Real estate built after the year 2010 are owned by homeowners with a median age of 44 years, compared to real estate built prior to 1969, which are owned by homeowners with a median age of 58. This suggests there is a growing market for renovations in homes so that older real estate can be lived in for a longer period of time, and homeowners can stay in one house for longer.