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.