American Real Estate Housing Stock Age is On the Rise
The older the housing stock gets, the higher there are of homeowners that are willing to renovate old real estate instead of selling and buying a newer home. There has been a continuous increase in the size of this group of people. The average age of homeowner housing increased from 31 to 37 years as of 2015 in a ten-year time span. The age of real estate being lived in is getting older and older.
In 2015, on average, American homeowner’s housing stock built before 1980 was 50% of the real estate market, with 38% of the market built before 1970. 19% of the homeowner housing stock was constructed after 2000. Properties built after 2010 make up a mere 3% of the real estate housing stock.
The housing stock that was built before 1972, or 45 years ago, has increased considerably from 32% in 2005 to more than 38% in 2015. Logically, the share of new construction built has declined with these numbers. In 2015, the number of new homes built within the last five years declined as low as 3%. In 2005, this number was as high as 9%. This decrease shows the demand for a newer real estate is consistently getting smaller and smaller.
The 2015 American Census states young homeowners are more likely to live in a newer real estate. The facts show that homeowners with a greater total family income tend to live in residential areas built in 2010 or beyond. The average household income for real estate built after 2010 was $121,577, which is greater than the $86,328 average family income for properties built before 1969.
Real estate built before 1969 are owned by homeowners with a median age of 58, as opposed to a property built after 2010 belonging to homeowners with a median age of 44 years. These numbers indicate the number of people willing to renovates their real estate so it can be lived in for a longer period has grown substantially. This pattern is good for the towns and cities who are tight on space.