Teardowns Are Making Room for New Homes
DAILY REAL ESTATE NEWS | THURSDAY, MARCH 31, 2016
About 7.7 percent of single-family home starts in 2015 were from teardown related construction. That means a new home was built on a site where a previous home had been torn down.
Read more: The Lowdown on Teardowns
In 2015, the National Association of Home Builders estimates that there were 55,000 total teardowns. In some areas, it may become more common.
“Due either to local topographic or political constraints, developable land in some places has become scarce,” the builder’s trade group notes. “In such places, replacing older structures with new ones can potentially be an important option for builders and developers.”
Teardowns accounted for the highest percentage in the Northeast (15 percent of single-family starts), followed by the Midwest at 8 percent, the South at 7 percent, and the West at 6 percent. (Note: There is less single-family construction overall in the Northeast so that’s why tear-downs accounted for a higher percentage there.)
“Among the four regions, the Northeast has the oldest housing stock, and many of its desirable locations are in densely settled cities, or near the ocean, where buildable open space may be limited,” NAHB notes at its blog, Eye on Housing.
Source: “NAHB Estimates 55,000 Single-Family Tear-Down Starts in 2015,” National Association of Home Builders’ Eye on Housing Blog (March 29, 2016)