The surprising housing age gap in homebuying trends
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Open embedded content from datawrapper.dwcdn.netDes Moines homebuyers are purchasing a greater share of newer homes than buyers in most major U.S. cities, thanks to new construction and a residual impact from the pandemic.
Why it matters: America's housing stock is aging, but building in some metros is better meeting demand, which can affect housing affordability.
The big picture: The median age of a U.S. home purchased last year was 36 years — the oldest since at least 2012, according to Redfin records.
- In the DSM metro, the median home purchased last year was 24 years old.
Stunning stat: DSM has among the oldest housing stock in the nation, with nearly 28% of homes built in 1939 or earlier, compared with 12% nationally, according to U.S. Census Bureau estimates.
Reality check: Older homes are generally more affordable, but owners can struggle with increased upkeep, a situation that has led the city of DSM to consider widespread redevelopment as part of a larger draft housing strategy.
By the numbers: Almost 27% of DSM-area homes bought last year were built in the previous five years, while about 45% were more than 30 years old.
- The median cost of a DSM-metro home over 30 was nearly $222,000, while a house built in the last five years had a median cost of $365,000, per Redfin's data.
What they're saying: New construction sales were significantly higher during the pandemic because fewer older homes were on the market, Les Sulgrove, a local Realtor and former president of the DSM Area Association of Realtors, tells Axios.
Yes, but: The share of new construction in the DSM metro's home sales inventory has declined in recent years, dropping from a peak of approximately 71% in February 2022 to below 50% this year, according to a review by Kalen Ludwig Real Estate Specialists.
- That's mainly because the inventory of resales has increased, according to Ludwig.
Context: Currently, it's more of a homebuyer's market — a significant reversal from the pandemic era.
What we're watching: Whether overall list prices keep falling.
- The median list price in the metro area on June 15 was around $355,000, a decrease of 4% from $370,000 a year earlier, Sulgrove said in his webcast.