As mortgage rates reach historic lows, prospective home buyers are in a strong position to purchase their first house. One of the most important questions prospective home buyers need to answer is whether they would prefer to buy a new or old home. However, housing inventory varies significantly by location and some parts of the country are more likely than others to have new homes.
Newly constructed homes have a lot of benefits for home buyers. According to a recent survey by the National Association of Realtors, buyers who purchase new homes enjoy having access to new community amenities, smart home features, higher energy efficiency, and new systems and appliances that shouldn’t soon require replacement or renovation. By contrast, buyers who purchase previously owned homes tend to prioritize affordability or value.
Research from the National Association of Home Builders shows that in 2018, 31 percent of home buyers wanted to purchase a brand-new home offered by a builder. For millennial home buyers, that number was even higher at 41 percent. However, according to data from the Census Bureau, only 20.4 percent of all homes in the U.S. were built in the past two decades. Furthermore, only 4.6 percent of homes were constructed after 2014. This constraint on inventory indicates that even if a home buyer would prefer a new home, they may not be able to find one.
Even though new housing inventory is limited nationwide, there are some locations where buyers are more likely to find a newer home. More specifically, states in the South and the West have a larger percentage of new homes. More than 30 percent of homes in Nevada, Utah, Texas, Arizona, and Idaho were built after 2000. On the other hand, the states with the lowest share of new homes are located in the Northeast and include Rhode Island (7.1 percent), New York (9.7 percent), and Massachusetts (11.6 percent). In fact, for these Northeast states—some of the oldest in the country—more than 30 percent of houses were constructed before 1940.
To find which states have the highest percentage of homes built after 2000, researchers at Porch analyzed housing data from the U.S. Census Bureau’s 2019 American Community Survey 1-Year Estimates and pricing data from the Zillow Home Value Index.
The analysis found that over the last 20 years, 490,752 homes have been built in New Jersey, which accounts for 13.5% of all homes there. Out of all states, New Jersey has the 7th lowest percentage of homes built since 2000. Here is a summary of the data for New Jersey:
- Percentage of homes built in 2000 or later: 13.5%
- Number of homes built in 2000 or later: 490,752
- Percentage of homes that are single-family: 62.8%
- Median number of rooms per home: 5.7
- Median home price: $353,518
For reference, here are the statistics for the entire United States:
- Percentage of homes built in 2000 or later: 20.4%
- Number of homes built in 2000 or later: 28,443,093
- Percentage of homes that are single-family: 67.1%
- Median number of rooms per home: 5.5
- Median home price: $256,663
For more information, a detailed methodology, and complete results, you can find the original report on Porch’s website.