The Rising Age of U.S. Homes: Why Older Homes Are Becoming More Common

As the U.S. housing market faces a continuing supply shortage, homebuyers are increasingly turning to older homes, with the typical home purchased in 2024 reaching an average age of 36 years. This marks a notable increase from 2012 when the typical home was just 27 years old, according to a recent Redfin analysis. The growing age of homes in the market is a direct result of both limited new construction and the affordability issues that buyers face.

Why Are Homes Getting Older?

There are two primary factors contributing to this trend: a lack of new housing supply and the cost of newer homes. The U.S. has seen fewer homes built in the past two decades, particularly after the 2008 financial crisis. As a result, many buyers are left with older properties, which can be more affordable but come with their own set of challenges, such as aging systems and the need for costly renovations.

“Americans aren’t choosing older homes because they prefer them they’re simply left with little choice,” said Sheharyar Bokhari, Senior Economist at Redfin. “With fewer new homes being built, buyers are increasingly forced to purchase from an aging housing stock that often requires significant upkeep, which can add unexpected financial strain.”

Fewer Homes Built, More Old Homes Bought

The U.S. has been constructing fewer homes since the housing crash of 2008. Only 9% of homes in the U.S. were built during the 2010s, marking the lowest share since the 1940s, when World War II temporarily halted construction. While residential construction has slightly increased in the 2020s partially fueled by a post-pandemic building boom in regions like the Sun Belt it’s still not enough to meet the demand.

At the current rate, the number of new homes being built is expected to be the second-lowest of any decade since the 1940s. This gap in supply is exacerbating the trend of purchasing older homes.

Price Gap Shrinks: Older Homes Becoming More Expensive

As the housing market evolves, the price gap between newer and older homes is beginning to narrow. In 2012, buyers paid nearly 78% more for newer homes compared to older ones. However, by 2024, this gap had shrunk to just 31.6%, with the price of a newer home averaging $425,000 compared to $323,000 for older homes.

While older homes have traditionally been more affordable due to factors like depreciation and outdated features, they now require more substantial updates to meet modern standards. In contrast, newer homes tend to have updated systems, modern designs, and energy-efficient features, which come at a higher initial cost but often save money in the long run.

A Shifting Market: What This Means for Homebuyers

For those looking to purchase a home, the shrinking price difference means more buyers are opting for older properties, which can be more affordable upfront but come with potential hidden costs. The need for major renovations such as replacing plumbing, electrical systems, and aging roofs can add significant expenses.

“Older homes may cost less initially, but you’re paying for those savings with ongoing repairs,” said Jerry Quade, a Redfin Premier Agent in Cleveland. “Buyers must take a close look at the major systems in a home plumbing, electrical, and even foundations because these costs can add up quickly.”

In cities with older housing stock, like Buffalo, Pittsburgh, and Cleveland, homes over 30 years old often sell for half the price of newer homes. But in cities with more recent construction, like Austin and Provo, newer homes tend to be more affordable than older ones, creating a stark contrast in how housing markets are developing across the U.S.

Regional Trends: Where Older Homes Are Most Prevalent

The average age of homes varies widely across the U.S., with some cities seeing a significant portion of homes built more than 60 years ago. For instance, the typical home sold in Buffalo in 2024 was 69 years old, the oldest among the 100 most populous metros. In contrast, in rapidly growing cities like Provo, Utah, the median age of homes sold in 2024 was just six years.

Regions such as the Rust Belt and East Coast, where older housing stock is prevalent, are seeing rising demand for these homes. In these areas, the price gap between older and newer homes is often substantial. For example, in Buffalo and Pittsburgh, homes built more than 30 years ago can be sold for significantly less than those built in the last five years.

The Impact on Home Prices and Affordability

The aging housing market is affecting home prices differently across the U.S. In areas with newer housing stock, like Texas and Utah, homes are still relatively affordable. However, in older metros such as Cleveland, Pittsburgh, and Buffalo, the high demand for these homes is driving up prices, making them less affordable than they used to be.

Additionally, the trend toward buying older homes is contributing to overall market price increases, with homes over 30 years old selling for about 15% less than the median home price in 2024.

A Changing Housing Market

As the housing market evolves, buyers will need to weigh the pros and cons of purchasing an older home. While they may offer more affordable options upfront, the costs of repairs and upgrades should be factored into the overall price of ownership. Ultimately, the lack of new construction is pushing the median age of U.S. homes to new heights, requiring buyers to make informed decisions about what they’re willing to take on in terms of repairs and long-term maintenance. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.