The owner-occupied housing stock is aging rapidly, as the median age of owner-occupied homes is 40 years, according to the latest data from the 2021 American Community Survey. According to the NAHB, the combination of a lack of sufficient supply of new construction and an aging existing housing stock signals potential growth in the remodeling market.
Rising home prices also encourage homeowners to spend more on home improvement. Over the long run, the aging of the housing stock implies that remodeling may grow faster than new construction.
A little less than half of the owner-occupied homes was built before 1980, with around 35% built before 1970. New construction added nearly 8.3 million units to the national stock from 2010 to 2021, accounting for only 10% of owner-occupied housing stock in 2021. Owner-occupied homes constructed between 2000 and 2009 make up 15% of the housing stock.
Due to modest supply of housing construction, the share of new construction built within past 11 years declined greatly, from 17% in 2011 to only 10% in 2021. Meanwhile, the share of housing stock at least 42 years old experienced a significant increase over the 10 years ago. The share in 2021 was 49% compared to 40% in 2011.