America’s aging housing stock
The age of the housing pool in the United States continues to mature with more than half built nearly four decades ago.
Based on data from the 2016 American Community Survey, the median age of owner-occupied homes is 37 years. Na Zhao, a housing policy economist with the National Association of Home Builders (NAHB), says this compares to a median age of 31 years in 2005 as the housing market continues to age.
According to Zhao, between 2010 and 2016 about 3 million housing units were built. This accounted for just 4% of owner-occupied housing stock in 2016. Owner-occupied homes built between 2000 and 2009 make up 16% of the housing stock. But more than half of the owner-occupied homes were built before 1980, with around 38% built before 1970.
New construction built within the past 6 years declined from 11% in 2006 to only 4% in 2016. At the same time, the share of housing stock built 46 year ago or earlier increased from 31% in 2006 to 38% in 2016.
Mass home aging and rising home prices signals growth in remodeling as owners look to stay put and update, Zhao wrote in a recent NAHB post.
But home ownership has also been rising since the third quarter of 2016, resulting in a demand for new construction.
Research also shows that nearly 70% of homes built after 2010 are owned by Generation X (age 35 – 54) and Millennials (age 18 – 34). Homes built before 1980 are primarily owned by Baby Boomers (age 55 or older), with 59% of homes built 1970 to 1979 and 56% of homes built before 1969 occupied by households that are ages 55 or up.
Based on data from the 2016 American Community Survey, the median age of owner-occupied homes is 37 years. Na Zhao, a housing policy economist with the National Association of Home Builders (NAHB), says this compares to a median age of 31 years in 2005 as the housing market continues to age.
According to Zhao, between 2010 and 2016 about 3 million housing units were built. This accounted for just 4% of owner-occupied housing stock in 2016. Owner-occupied homes built between 2000 and 2009 make up 16% of the housing stock. But more than half of the owner-occupied homes were built before 1980, with around 38% built before 1970.
New construction built within the past 6 years declined from 11% in 2006 to only 4% in 2016. At the same time, the share of housing stock built 46 year ago or earlier increased from 31% in 2006 to 38% in 2016.
Mass home aging and rising home prices signals growth in remodeling as owners look to stay put and update, Zhao wrote in a recent NAHB post.
But home ownership has also been rising since the third quarter of 2016, resulting in a demand for new construction.
Research also shows that nearly 70% of homes built after 2010 are owned by Generation X (age 35 – 54) and Millennials (age 18 – 34). Homes built before 1980 are primarily owned by Baby Boomers (age 55 or older), with 59% of homes built 1970 to 1979 and 56% of homes built before 1969 occupied by households that are ages 55 or up.