A Decade Passed And The Homes Got Younger

The median year built of U.S. homes is now 45 ago — think of a house built in 1980 — which is four years newer than the median year built (1976) among homes a decade ago. Look closer, though, and you’ll find very different stories across particular states' and cities' markets. 

A new study from PropertyShark, an online real estate database and property research tool, provides a glimpse into where homebuyers are snapping up newer houses, and where more new houses are being built (and where they're not). 

In the most drastic changes, the median year built for houses soared 25 years newer in Williston, N.D. and in Farmers Branch, Texas, while the median year built for houses in Passaic City, N.J. actually got older by seven years. 

"Unsurprisingly, new construction was the main driver in pushing the median year built forward," the study authors wrote. "Housing shortages, population growth, and migration trends fueled development across the country, particularly in the Sunbelt: Southern states accounted for 37% of all cities where the median year built moved, while the Northeast supplied only 11% of such cities."

The study examined homes in all 1,839 U.S. cities and towns with at least 25,000 residents.

Among large cities, the median year built for homes moved 18 years newer over the last decade, from 73 to 55 years ago, in Jersey City, N.J. — the 72nd-largest U.S. city with its population of 291,650 and second-largest in the state. That was followed by 14-year gains in Atlanta, Ga. (population 510,800), and Seattle, Wash. (population 755,100). 

And then, there are the smaller cities: Williston, N.D.’s (population 27,700) housing stock went from a median year built of 53 to 28 years ago, while homes in Farmers Branch, Texas (population 37,000), went from a median year built of 57 to 32 years ago — those largest 25-year reductions in median year built mentioned above. Middletown, N.Y. (population 30,150), saw its homes move from a median year built of 86 to 63 years ago (23 years newer), and Monsey, N.Y.’s (population 27,800) housing stock went from a median year built of 44 to 24 years ago (22 years newer). 

In Ithaca, N.Y. (population 32,700), known as a “college town” since you’ll find both Cornell University and Ithaca College there, housing stock is now a median of 20 years newer. The city went from its houses being a median of 86 to 66 years old. Hoboken, N.J.’s (population 57,000) housing stock is now 19 years younger, moving from a collective median of 69 to 50 years old over the last decade. 

Broadly, over the last 10 years, the median year built of U.S. housing got newer in 86% — approaching nine out of 10 — of cities with 25,000 or more residents, according to the study.

What’s behind this “Benjamin Button”-like younger age of homes across the country? PropertyShark points to a range of factors:

1. New construction, which is more pronounced in certain areas of the country;

2. Redevelopment of outdated housing, where builders either buy and demolish older homes to build new ones or by repurpose existing structures;

3. Urban sprawl, where newer construction of various types spreads out from major metro areas;

4. Gentrification, which is  when wealthier residents and businesses move into historically low-income or working-class neighborhoods;

5. Migration patterns, which have been favoring larger cities and Sunbelt states; and

6. Population growth, where the U.S. population stood at 320.7 million in 2015 and is projected to grow by nearly 30 million to about 350 million by the end of this year.

Nos. 1, 2, and 3 above may seem obvious as to how they'd reduce the median year built of housing stock, but what about 4, 5, and 6? National Mortgage Professional caught up with PropertyShark researchers for more insight. 

Regarding gentrification, "as wealthier residents move into neighborhoods, developers often tear down older, deteriorating buildings to make way for modern housing," researchers told NMP. "The average housing age is reduced as a result. Gentrification often brings new apartment complexes, luxury condos, and modern townhouses, and furthermore, the housing stock may become younger as a result of new zoning regulations that permit denser, larger developments."

In addition, "for migration and population growth, with the influx of new residents or natural population growth, the demand for more housing increases," the researchers said. "To meet this demand, developers construct new homes, apartments, and high-rises, reducing the overall average age of housing stock."

Though median year built for homes got newer in all 50 U.S. states, the change wasn’t by any means even across the board. Idaho’s median year built moved eight years newer, for instance, while Hawaii’s got only a year younger. 

Also, among states, New York has the oldest-built housing stock at a median of 67 years, even though, as noted, some of its smaller cities saw their median year built of homes get much newer. Nevada has the most recent median year built for homes at 29 years ago, making for a median year built of 1996.

More on U.S. cities

Returning to the city level, Elizabeth, N.J. (population 135,800), and Daly City, Calif. (population 99,850), were the only cities around the 100,000-resident-or-higher mark where the median year built actually moved backwards, according to the study. 

What are the larger U.S. cities with the oldest homes? At a median year built of 86 years ago, St. Louis, Mo. (population 281,750), Buffalo, N.Y. (population 274,700), New Bedford, Mass. (population 100,700), Rochester, N.Y. (population 207,300), and Providence, R.I. (population 190,800), have the oldest housing stock, PropertyShark's analysis found. For those cities, the median year built is 1939. 

On the flipside, Frisco, Texas (population 225,000), now has the youngest housing stock, at a median year built of just 16 years ago in 2009, among U.S. cities of with populations over 100,000.