The National Association of Home Builders (NAHB) Eye On Housing reported that owner-occupied housing stock in America is aging faster than newly constructed owner-occupied homes. Basing their findings on the Department of Housing and Urban Development’s 2013 American Housing Survey data, the NAHB indicated that the national “median age of owner-occupied homes is 37 years old, compared to 27 years old in 1993.” While 2/3 of the aging housing stock was built before 1980 (40% of which were built before 1970), a slowing in new owner-occupied construction was evident.
In 2000, only 17% of all newly built homes were owner-occupied. The percentage further decreased in 2010 when only 2% of newly constructed homes were owner-occupied stock. The NAHB said, “Clearly, the smaller share of new construction, together with an aging housing stock, represents an opportunity for builders and developers, as housing demand is steadily increasing over time.”
Because demand is one key factor that drives new home construction in any particular market, the NAHB’s data showed the age of housing stock is not the same in each state. In Idaho, the median age of owner-occupied housing stock is between 16-29 years old. This younger stock is the result of the large population changes seen in the state from 2000-2013. Within that 13-year timeframe, Idaho’s population grew between 10%-16%.
Although similar population growth was observed in Washington and Wyoming, the average age of housing stock was between 30-39 years old. Montana’s median age of housing stock, also averaging between 30-39 years old, seemed to be more in alignment with their 5%-10% population growth from 2000-2013.
To read the full article and view the NAHB’s graph charts, visit http://bit.ly/1Nt29LI.