Around 48% of the United States housing stock dates back to the 1980s and earlier. The median age of owner-occupied homes has rose to 41 years in 2023, up from 31 years in 2005, according to the latest data from the American Community Survey. The U.S. owner-occupied housing stock has aged rapidly particularly, particularly since the Great Recession, as the residential construction continues to fall behind in delivering new homes.
According to Eye On Housing, Currently, new home construction faces headwinds such as rising material costs, persistent labor shortage and elevated interest rates. These challenges have contributed to an insufficient supply of new construction, making the nation’s owner-occupied housing stock significantly older over time. As a result, the aging housing stock signals a future growing remodeling market. Older structures require updates to add new amenities or need repairs or replacements of old components.
Moreover, the lock-in effect from historically low mortgage rates during the pandemic period has led many homeowners to stay put and renovate their existing homes to accommodate the growing needs of their families. Over the long run, the aging of the housing stock implies that remodeling may grow faster than new construction.
