In What Decade Was Your House Built?
A significant driver for the growth of fix and flip loan origination is the age of the US housing stock and the need to either repair or modernize residential real estate.
Across America, the median age of housing stock varies by state with parts of the Northeast being the oldest - New York, Massachusetts, Pennsylvania and Rhode Island being 49-59 years old. The Midwest and California make up the next oldest group with the median age being 40-49. The Southeast, Texas and the Western desert states make up the area with the youngest housing.
Zillow completed a study back in 2014, breaking down into decades the portion when each state's housing was constructed. States is the South such as North Carolina and Georgia show little construction pre-1950s but show significant increases in the 1990s and beyond. New York and Pennsylvania show spikes in the 1920s and 1950s. California's graph shows construction evenly divided from the 1940s through the 2000s.
Housing remains a durable asset with the NAR estimating only 300k-400k houses demolished per year. New home sales remain near 600k, so the remainder of the 1+ million new household formations each year will see a substantial portion of their housing need be met by property rehabs - the fix and flip market.
Disclaimer - This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.