The nation’s housing stock has aged significantly as new home construction has not kept pace with demand. Almost half of owner-occupied houses were built in the 1980s or earlier, pushing the average age to 42 years, according to the U.S. Census Bureau. Twenty years ago, the average age was 31 years.
Between 2020 and 2024, nearly 3.6 million owner-occupied homes were added to the housing stock. This accounted for only 4% of the total supply, an analysis by the National Association of Home Builders (NAHB) shows. Relatively newer homes built between 2010 and 2019 made up approximately 9% of the stock, while those constructed between 2000 and 2009 constituted 15%. In contrast, approximately 47% of owner-occupied homes were built before 1980, including 34% built before 1970.
Because construction has not kept up with demand, the share of newer owner-occupied homes — those built within the past 14 years — has declined significantly, from 18% in 2014 to 13% in 2024. Meanwhile, the share of older homes at least 45 years old has increased, rising from 39% in 2014 to 47% in 2024.
“The shift further reflects the ongoing aging of the housing stock, highlighting the growing importance of the remodeling sector to address the growing needs of homeowners nationwide,” said NAHB economist Na Zhao.
Demolition Permits Rise As Homes Age
As houses age, some are demolished to make way for new buildings. With the exception of 2020, permits for residential demolition have increased since 2018. While demolition permits have plateaued since 2022, permits last year were 34% greater than in 2018, underscoring elevated activity, the NAHB reports.
While data do not differentiate between partial or full demolitions, these teardowns often indicate redevelopment and neighborhood reinvestment, signaling future construction. NAHB surveys indicate that teardown-related construction projects made up approximately 7% of single-family starts in 2024.
Demolition activity is highly concentrated at the state level. California, Texas, and Florida — the three most populous states — typically lead the nation in demolition permits. However, from 2023 through 2025, New Jersey ranked third in total demolition permits, surpassing Texas.
New Jersey’s elevated demolition activity reflects the age of its housing stock. Approximately 73% of homes in the state were built before 1980, with 18% built before 1939. This leaves many properties functionally obsolete or in need of replacement. In response, several municipalities have pursued targeted redevelopment and blight reduction initiatives. For example, Trenton launched one of its largest blight reduction projects in 2023, aimed at revitalizing distressed neighborhoods and expanding the supply of quality housing.
In 2025, New Jersey accounted for approximately 10.4% of all residential demolition permits nationwide. Florida recorded the largest share at 14.6%, followed by California at 13.3%. Texas remained a significant contributor at 7.2%, while New York ranked fifth with approximately 4.1% of total activity. Collectively, the top five states accounted for nearly half of all residential demolition permits issued in 2025, highlighting the high degree of geographic concentration at the state level.
This trend of increasing teardowns and redevelopment offers opportunities for mortgage professionals. As older homes are replaced with new construction, demand for new purchase mortgages will rise. Additionally, the focus on remodeling and redevelopment creates a market for construction loans and renovation financing, supporting both individual homeowners and larger-scale projects aimed at revitalizing communities.
