Opportunity - America’s Houses are Getting Older

Attention house flippers - the macro outlook for residential remodeling looks favorable. According to an analysis from the National Association of Home Builders, the median age of residential homes in the U.S. is 37. That’s up sharply from 31 in 2005. Additionally, half of all homes now standing in the U.S. were built before 1980. While houses are growing older, fewer new homes are being built per household than at almost any time in U.S. history. According to the National Association of Home Builders, the estimated 854,000 of new single-family homes expected in 2019 is well short of the 1.3 million homes needed to keep up with population growth. Additionally, a study conducted by Freddie Mac concludes the current annual rate of new construction is about 370,000 units below the level required by long-term housing demand. The lack of new construction, and the aging housing stock, signals a strong remodeling market for years to come.