Aging US Owner-Occupied Houses Could Propel Repair and Remodeling Demand Ahead of New Construction

Original Source:
The Aging Housing Stock

According to the latest data provided by the US Census Bureau’s American Community Survey for 2021, with additional analysis provided by the National Association of Home Builders (NAHB), the median age of owner-occupied homes in the US is 40 years.

Here are the highlights:

  • A little less than half of the owner-occupied homes were built prior to 1980, with approximately 35% constructed before 1970.
  • The share of housing stock at least 42 years old experienced a significant increase from 10 years ago. The share in 2021 was 49% compared to 40% in 2011.
  • New construction added nearly 8.3 million units to the US stock from 2010 to 2021, accounting for only 10% of the owner-occupied stock in 2021.
  • Owner occupied homes constructed between 2000 and 2009 make up 15% of the housing stock.

The NAHB says that owner-occupied housing is aging rapidly, especially after the Great Recession, as residential construction continues to lag behind the number of new homes built.

The lack of new construction and the aging of existing housing stock signals a growing remodeling market, as older structures require either new amenities or repair/replacement of old components. Rising new home prices are also serving as a catalyst for homeowners to spend more on home improvement. As a result, in the long run that aging of housing stock could have remodeling growing faster than new construction.

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