In today’s dynamic housing market, a fascinating trend is emerging: the growing prominence of mature homes. As of 2024, the typical home finding a new owner has a rich history, a testament to its enduring appeal and the evolving landscape of American housing, according to a recent assessment by Redfin. While the price difference between these character-filled dwellings and their newer counterparts has shifted, this opens up exciting opportunities for savvy homebuyers.
The data, spanning from 2012 to 2024, reveals a notable increase in the age of the median home purchased. This isn’t just a statistic; it’s a reflection of a market where established homes in desirable neighborhoods are increasingly in the spotlight. Two key factors contribute to this trend: the inherent affordability that mature homes often present compared to new constructions, and a period of more measured new home development following the Great Recession.
Sheharyar Bokhari, a Senior Economist at Redfin, notes, “America’s housing stock is getting older by the year.” While this is partly due to the pace of new construction, it also highlights a unique chance for buyers to invest in homes with stories to tell and craftsmanship from different eras.
A New Chapter for Homes with History
In 2024, the median age of a purchased home reached 36 years, the highest on record, as detailed in Redfin’s report. This means that many buyers are discovering the unique charm of homes built several decades ago. Specifically, the typical single-family home bought last year was 36 years old, condos averaged 38 years, and townhomes were a younger 23 years old. This is a shift from 2012, when the median age for all homes purchased was 27.
This embrace of established homes varies across the nation. For instance, in Buffalo, New York, buyers are finding value in homes with a median age of 69 years, dating back to 1955. Conversely, areas like Provo, Utah, showcase newer inventory, with a median construction year of 2018. This diversity offers a wide spectrum of choices for discerning buyers.
The Evolving Landscape of New Construction
The early 2000s saw a significant boom in residential construction, with nearly 15% of all existing homes built between 2000 and 2009. Following the 2008 financial crisis, the pace of new construction moderated, with about 9% of current homes built between 2010 and 2019. This was the smallest share of new homes added in several decades, according to Redfin’s analysis.
Looking forward, the period between 2020 and 2023 saw 3.1% of existing homes being newly built. While the pace of new construction continues to adapt to market conditions and economic factors, including recent tariff discussions that could influence building costs, the existing housing stock offers a wealth of opportunities.
Discovering Value in Established Properties
It’s true that traditionally, brand-new homes (less than 5 years old) have come with a higher price tag than those with more history (30+ years old). While this remains the case, the premium for newness has seen an adjustment. In 2024, the median price of a newer home was 31.6% more than an older home. This is a narrower gap compared to 2012, when new homes commanded a 77.9% premium. This evolving dynamic means that the unique value proposition of older homes is becoming even more apparent.
Choosing an established home can be an exciting journey. While they may not always feature the very latest contemporary finishes out of the box, they often reside in mature neighborhoods with established trees, community amenities, and unique architectural styles that newer developments may take years to cultivate. As Redfin Premier agent Jerry Quade alluded to, understanding the condition of an older home is key. This presents a fantastic opportunity for buyers to personalize their space, make updates that reflect their taste, and build equity through thoughtful renovations.
Bokhari further commented on the financial considerations, stating, “Without more construction, buyers are forced to choose from a pool of aging properties that present a new set of financial challenges, especially for those trying to save enough money to climb onto the property ladder.” However, this can also be viewed as an opportunity. Buyers who are willing to invest some TLC into an older property can often secure a home in a desirable location and create a space that is truly their own, often with a more manageable initial purchase price. The character, craftsmanship, and potential for personalization in older homes offer a rewarding path to homeownership and a chance to breathe new life into a property with a rich past.
Source: Based on an analysis of MLS data by Redfin
