Buyers are increasingly turning to older properties out of necessity. In 2024, the age of a typical home hit a new high, according to Redfin. But buyers aren’t getting as much of a discount on older homes as they used to.
Real Estate News
Key points:
- The median home purchased in 2024 was 36 years old — nearly a decade older than the median home bought in 2012, according to a new Redfin report.
- New home construction from 2020 to 2029 is expected to result in the second-lowest share of homes for any decade since the 1940s.
- While older homes tend to cost less than newer homes, the price gap is shrinking quickly, and maintenance costs tend to be higher.
The typical home purchased in the U.S. is now several decades old — but buyers who choose older properties over newer ones aren’t saving as much as they once did.
From 2012 to 2024, there was a nine-year jump in the age of a typical home purchased, according to a new Redfin assessment of MLS data culled from that 12-year span. The two main reasons? Older homes tend to be more affordable than newer homes, and new home construction has lagged since the Great Recession.
“America’s housing stock is getting older by the year, and it’s not because buyers prefer vintage homes — it’s because we haven’t built enough new ones,” Redfin Senior Economist Sheharyar Bokhari said in the report.
A new record as homes approach middle age
The typical home purchased in 2024 was 36 years old — the oldest median age on record, according to Redfin’s report. Broken down by home type, the typical age of a single-family home bought last year was 36, compared with 38 for condos and 23 for townhomes. In contrast, the age of the median single-family home bought in 2012 was 28, compared with 26 for condos, 20 for townhomes and 27 for all homes purchased that year.
The trend of older home purchases is stronger in some U.S. metros than others, with the typical home purchased last year in Buffalo, New York, dating back to 1955 — or 69 years old. The newest homes can be found in Provo, Utah, where the median home was built in 2018.
Dropoff in new home construction
Residential construction boomed during the early 2000s, with 14.9% of all existing homes built between 2000 and 2009. But construction slackened after the 2008 financial crisis, with only 9% of existing homes built from 2010 through 2019, the smallest share since the 1940s, according to Redfin’s analysis.
The situation does not appear to be improving much in this decade, with only 3.1% of existing homes built between 2020 and 2023. At the current pace, new home construction from 2020 to 2029 “is projected to be the second lowest of any decade since the 1940s,” the report noted.
And that doesn’t factor in the recent tariff announcements, which have shaken the construction industry. The National Association of Home Builders predicted the cost of building a new home could rise by nearly $11,000 depending on tariff implementation. While housing starts increased early this year, that momentum was already stalling by March amid eroding builder confidence.
Buyers aren’t saving as much money on older homes
Though buying a newer home — one less than 5 years old — is traditionally more expensive than buying an older home (30+ years old), buyers who choose older homes today are saving less. In 2024, the median price of a newer home was 31.6% more than that of an older home. But 12 years earlier, there existed a 77.9% price gap between the median sale prices of newer and older homes.
In addition to saving less on the sale price, buyers of older homes aren’t getting the updated features that come with many newer homes. Jerry Quade, a Redfin Premier agent, noted in the press release that buyers of older homes can face “a huge burden” down the road when repairs or replacements are needed.
“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,” Bokhari said. “Older homes have aging systems, energy inefficiencies, and a steady stream of maintenance costs that can quickly add up after move-in.”
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HousingWire
The median age of homes purchased nationwide reached a record high of 36 years in 2024, a significant jump from 27 years in 2012, according to an analysis released Monday by Redfin.
The trend reflects a long-term slowdown in new home construction and growing affordability challenges. Buyers are increasingly turning to older properties, often out of necessity rather than preference.
“America’s housing stock is getting older by the year, and it’s not because buyers prefer vintage homes — it’s because we haven’t built enough new ones,” Sheharyar Bokhari, senior economist at Redfin, said in a statement.
“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. Older homes have aging systems, energy inefficiencies, and a steady stream of maintenance costs that can quickly add up after move-in.”
The report analyzed data from multiple listing services (MLSs) covering purchases between 2012 and 2024. It includes multiple property types, including single-family homes, townhouses and condominiums.
Condos saw the steepest aging trend, with the median age of purchased units rising from 26 years in 2012 to 38 years in 2024.
Construction still behind demand
The shortage of new housing is a key factor in the shift. Only 9% of homes in the U.S. were built in the 2010s, the lowest share for any decade since the 1940s, when World War II limited construction activity.
Although building activity has picked up slightly in the 2020s — particularly in the Sun Belt and Mountain West regions — the current pace still falls short of demand.
Affordability is another driver. In 2024, older homes (defined as those over 30 years old) sold for a median price of $323,000 — roughly 15% less than the U.S. median home price. By comparison, homes built in the past five years sold for $425,000.
But the premium for buying a newer home has narrowed. In 2012, buyers paid 77.9% more for a newer home than for an older one. In 2024, that difference fell to 31.6%. The discount for buying an older home has also shrunk, from 18.9% below the median price in 2012 to 15% below in 2024.
Redfin said several factors contribute to the narrowing price gap.
Homebuilders are increasingly constructing lower-cost housing such as townhouses, which now represent nearly 20% of new inventory. Many new homes are being built in lower-cost regions, and prices in older metro areas — especially on the East Coast and in the Midwest — have been rising.
Stark differences between cities
The age of homes sold varies sharply by region. In Buffalo, New York, for example, the typical home purchased in 2024 was 69 years old — the oldest among the 100 most populous metro areas analyzed. Only 2.6% of Buffalo’s home sales involved properties built within the past five years.
Other cities with aging housing stock include Pittsburgh (median age of 68 years); Syracuse, New York (65 years); Springfield, Massachusetts (65); and Cleveland (65).
“Older homes may cost less upfront, but the cost of repairing or replacing big ticket items can be a huge burden for buyers,” said Jerry Quade, a Redfin Premier agent in Cleveland.
“We always take a close look at the plumbing and electrical systems, along with the concrete foundations and the roof. Most of the old homes in Cleveland have basements, so we also look for any signs of water intrusion. At the end of the day, getting a building inspection is critical.”
At the opposite end of the spectrum is Provo, Utah, where the median age of homes purchased in 2024 was only six years. Buyers there paid nearly the same price for older homes ($479,900) as they did for newer ones ($490,000).
Other metros with newer housing stock include Austin; Boise, Idaho; San Antonio; and Raleigh. In these locations, the typical home sold was no more than nine years old.
In Austin, the market dynamics have turned in favor of well-located, renovated older homes.
“The only four listings I’ve had this year with multiple offers were older homes,” said Andrew Vallejo, a Redfin Premier agent in Austin. “They had all been renovated and were in good proximity to the tech companies, bars and restaurants.
“We are experiencing a severe downturn in Austin, but older homes within the city’s core — while rare — are still moving fast when they are listed.”