Newer Owners of Older Homes Spend More

The median age of all owned homes was 41 years, with older homes (those built before 1950) making up 17% of homes, according to the 2021 American Housing Survey. Owners of older homes spent a median of $1,800 a year on upkeep.

In addition to the age of their homes, the AHS asked homeowners how much they spent on home improvements in the last two years or, if they moved in more recently than that, how much they spent since moving in.

The survey found that newer owners of older homes tended to spend more on overall upkeep than longtime owners of older homes. Those who moved into older homes within the past two years spent a median of $3,900 per year, while longtime owners (those who had lived in an older home for at least 10 years) spent approximately $1,500 per year.

Of all people who owned older homes, 61% reported starting a home improvement project between 2019 and 2021. The median amount spent on home improvement projects during that period was $4,100. Additionally, the AHS found that owners of older homes spent a median of $540 on maintenance alone, per year.

Interior improvements accounted for the most home improvement projects regardless of a home’s age. For owners of older homes specifically, 59% of newer owners and 46% of longtime owners completed interior projects. Most commonly, these included improvements to plumbing fixtures, flooring, drywall, paneling, ceiling tiles and water heaters.

In comparison, 27% of owners of older homes reported making exterior improvements, including window and door replacements, roof replacements and porch, deck, patio and terrace additions.

Land improvements accounted for 21% of home improvement projects completed by owners of older homes. The top land improvements for these owners were landscaping, fencing and driveways and walkways. Statistically, newer owners of older homes were more likely than longtime owners to make land improvements (32% versus 18%, respectively).

Maintenance costs can be higher for owners of older homes, but older homes are often smaller in size. These owners spent a median of $200 per 500 square feet of living space on maintenance annually, and those who took on at least one home improvement project spent a median of $700 for each 500 square feet of living space.

Overall, cost-wise, newer owners of older homes spent more than longtime owners on annual home improvement and maintenance. Newer owners spent a median of 1.5% of the home’s value, compared to 0.6% for longtime owners.

Lastly, when it comes to the demographics of owners of older homes, the median age was 58 years old, and 26% of their households had children. Additionally, while race and ethnicity weren’t generally statistically significant factors for owners of older homes, about 10% of homes owned by Asian American and Pacific Islanders and 7% of homes owned by American Indian and Alaska Natives were built before 1950.