Approximately 7.7% of single-family home starts in 2015 were attributable to tear-down related construction, according to the latest estimates from National Association of Home Builders.
NAHB economist Paul Emrath, noting that anecdotal evidences has begun to show that home building construction on sites previously occupied by a building structure is a significant trend, lays out the association's methodology for counting tear-down starts. He writes:
Tear-downs accounted for about 6 percent of single-family starts in the West, 7 percent in the South, and 8 percent in the Midwest. In absolute terms, the Northeast had about the same number of tear-down starts as the Midwest (8,000). But because there is less single-family construction overall in the Northeast, tear-downs accounted for 15 percent of starts there. Among the four regions, the Northeast has the oldest housing stock, and many of its desirable locations are in densely settled cities, or near the ocean, where buildable open space may be limited.