Another problem for buyers: The aging home supply
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.
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."