According to a recent blog from the National Association of Home Builders (NAHB), the American housing stock continues to age – especially since residential construction only grew at a modest pace after the Great Recession.
A decade ago, the median age of owner-occupied housing was at 31 years. As of 2015, that number increased to 37 years. This aging trend shows that the market could be growing for remodelers, as older structures normally require additional renovations. Likewise, it could also bring a rising demand for new construction in the long run.
The NAHB’s study showed that more than half of the owner-occupied housing stock was built before 1980, with around 38% built before 1970. Homes constructed after 2000 make up just 19% of the owner-occupied housing stock, while homes built after 2010 account for only 3%.
The share of new construction built within the past 5 years dropped to 3% in 2015, compared to 9% in 2005. That said, as America’s homes continue to age, this trend could soon change as the demand for newer housing increases – especially for younger homeowners looking for more modern amenities.