Is it charming or is it just old? This is the age-old question homebuyers who are looking for a home with character continually ask themselves. Since our country will be celebrating its 250th birthday this year, chances are there are lots of homes with character to choose from.
According to the Harvard Joint Center for Housing Studies, the median home in the country is 44 years old. That’s median meaning half, so that leaves many other properties older than that. In fact, 29.5 million units are 55 years old or more.
The housing boom started in the 1920’s but really exploded after World War II to accommodate the new confidence in the country, resulting in higher birth rates and returning soldiers. Add to this a building surge during the 1970’s and we’re now looking at enough old homes to give “This Old House” decades of TV shows.
The cost of maintenance and structural repairs grew by about 14.1% between 2022 and 2024, according to the Federal Reserve Bank of Philadelphia. Financial advisers traditionally suggest setting aside 1% of a home’s value annually for upkeep. Now, however, that recommended number has increased to 2% or 3%, particularly for older homes. Once you start ripping out walls for a remodel in an older home, you’re never sure what you’re going to find or how much money it will add to the project.
In addition, older homes can face homeowner’s insurance issues. Aging roofs, siding and systems can increase premiums or result in not being able to get coverage on the house at all. This could lead to mortgage lenders denying a loan because of the property’s condition.
Florida has a definite leg up on new home construction. If you want new construction, just take a ride down Cortez Road, or out east to Parrish, and you’ll find literally thousands of new homes being built every day. Do they have the charm and character of some older homes, maybe, maybe not, but they do have new roofs and everything else.
Also, in a slow real estate market, the homes that are selling are the ones in good condition, with no major repair issues and are priced right. And they’re out there, since only 34% of existing homes on the market need repairs or updates. Unfortunately, many sellers are living in the past when the market was on the upswing, but that was then, this is now, and sellers need to readjust their expectations.
The two regions where homes are selling quickly are in the Midwest and Northeast, where there is a lack of new construction keeping the supply of available properties down. I believe the new construction in our state is hurting the Florida market, and certainly in areas where there is an abundance of new construction, like Manatee County, creating competition for existing properties.
If an older, charming home is still on your radar, remember you’re not just buying an older home; you’re buying an expensive maintenance schedule. You can put off the “someday I’ll get to the bathroom renovation” until the 40-year-old tub springs a leak, or the 50-year-old soffits finally blow off in a storm, but it will eventually catch up with you.
Is charming just another word for old? Be careful what you wish for.
