January 22, 2014, 10:31 AM ET
Vital Signs: U.S. Housing Stock Is Getting Older
By Kathleen Madigan
The median U.S. house has 35 candles on its birthday cake.
In a blog post on the National Association of Home Builders’ website, economist Joshua Miller notes the U.S. housing stock is getting older, according to Census data. The median age in 1985 was 23 years; by 2011 the median had crept up to 35 years.
A greater share of homes was built more than four decades ago. Data for 2011 show 41% of owner-occupied homes were constructed in 1969 or earlier, while only 15% of the current housing stock was built during the 2000s which included the housing boom.
The aging housing stock is a plus for the construction industry since the homes will “require remodeling or replacement in the years ahead,” Miller writes.
While economy-watchers tend to focus on housing starts, remodeling and alterations represent a big part of the construction sector. Whether it’s improving energy efficiency or swapping a Formica countertop for granite, homeowners are willing to upgrade their properties.
According to nominal gross domestic product data, spending on residential improvements accounted for about 38% of all residential investment in 2012. In addition, spending on improvements suffered far less during the housing bust, providing work for construction workers during the lean years.
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