In 2023, the median age of a house built in the U.S. was 44 years, according to the Census Bureau’s latest American Housing Survey. However, many of the homes built in the early 20th century—that are still standing—are now nearing twice that age. Maintaining an older property can require more from homeowners, but when it comes to the value of any old house, there’s always potential.
The research team at This Old House analyzed data from the U.S. Census Bureau, The Journal of Light Construction (JLC), and the National Association of Realtors (NAR) to determine the most common projects homeowners of older homes undertake and which upgrades are worth the expense. We consulted experts to compare the differences between older and newer homes when evaluating improvements and upgrades. Our deep dive into older homes and related home renovation trends also reveals how homeowners can determine their home value before listing it for sale.
Key Takeaways
- Among all homes in the U.S. in 2023, 16.4% were considered old (constructed pre-1950), according to the Census Bureau.
- Replacing your front and garage doors is among the top exterior upgrades with the highest ROI, along with interior upgrades like adding or refinishing hardwood floors.
- Owners of older homes spent a median of $1,800 a year on upkeep, per the Census Bureau.
- Older homes are more likely to need their windows replaced, insulation upgraded, plumbing updated, and roofs replaced.
Older Homes vs. New Homes
In the U.S., 16.4% of homes still standing in 2023 were considered old due to their construction prior to the 1950s, according to the U.S. Census Bureau. Homes built during the 1970s made up 14.4%, while 13.6% were built from 2000 to 2009. Only 1.2% of homes were built in or after 2020.
When considering whether to purchase an old or new home, prospective homebuyers may feel torn between a house waiting to be filled with new memories and one that’s seen its fair share of life. “Older homes have more craftsmanship, design elements, [and] aesthetic character and often incorporate high-quality materials like solid wood and stone,” says Kristen Jock, licensed real estate broker at Compass Real Estate, “offering a timeless appeal that many buyers find desirable.”
However, these same historical gems often “have quirks like uneven floors, low ceilings, or drafty windows,” says Leslie Foti, a real estate agent at Coldwell Banker Village Green. Hilary Campbell, instructor and co-chair of the Building Construction Technology Department at Portland Community College, points to the hidden—and often multi-faceted—conditions that can detract from an older home’s value: “This is where the real risk lies,” she says.
“Newer homes provide modern amenities and lower maintenance,” says Foti, but even they “can encounter issues like builder-grade materials wearing out quickly or design flaws due to rushed construction.” Although newer homes tend to come with modern conveniences, “they often miss the craftsmanship and character that make older homes feel special,” says Paul Johansen, licensed real estate broker at The Corcoran Group.
Home Upgrades That Add Value to Your Older Home
Owners of old homes must carefully balance necessary repairs with strategic home upgrades that help boost curb appeal and resale value. A mix of external updates—such as the main entrances to the home—and interior enhancements like flooring can strengthen a home’s allure. “One of the most impactful upgrades for an older home is a kitchen renovation,” says Campbell. Below are the top home upgrade projects homeowners can undertake to reap a significant return on investment (ROI).
Replacing the Front Door With a Steel Door
Home security can be top of mind for many prospective homebuyers, making a steel door upgrade a wise choice for owners of older homes. Replacing the existing front door with a steel version—at a cost of $2,355 on average—resulted in a 188% cost recovery in 2024, according to JLC.
Garage Door Replacement
If there’s one door that gets as much, if not more, use than your front door, it’s your garage door(s). The replacement value was nearly twice that of the garage door cost—an average of $4,513—resulting in a 194% cost recovery, per JLC.
New Wood Flooring
Homeowners can recuperate 118% of the cost of new wood flooring, according to a 2022 NAR report. When choosing hardwood flooring for an older home, consider that the average cost recovered—$6,500—is $1,000 more than the average total bill for this type of home upgrade.
Refinishing Hardwood Floors
Renewing existing hardwood floors can help bring out an older home’s natural charm. While the cost to refinish hardwood floors averages $3,400, the $5,000 in value results in a 147% cost recovery, according to the NAR.
Minor Kitchen Remodel
“Today’s lifestyle means the kitchen is the active center of the home,” says Campbell. With only a $1,086 deficit between the average cost of a minor kitchen remodel—$27,492—and the returned value of $26,406, homeowners can expect a 96% cost recovery, per JLC. If you plan on undertaking a kitchen remodel but want to keep your expenses in check, consult our kitchen remodeling guide for expert advice on where your funds are best spent to increase your rate of return.
Common Home Improvement Projects Needed in Older Homes
Owners of homes built pre-1950 spent an average of $1,800 annually on upkeep alone, according to the Census Bureau. In addition, homeowners must budget for the cost of any improvements, from upgrading to energy-efficient windows to updating the plumbing and insulation. Below, we explore the top home improvement projects common among older homes.
Windows
Investing in modern wood or vinyl windows can offer several benefits, from increased energy efficiency to a clean, updated look. “Providing opportunities for greater natural daylighting in the older home can make those same interiors feel more spacious,” says Campbell. Average window replacement costs vary depending on whether you choose vinyl ($21,264) or wood ($25,799) framing, but in 2024, the average cost recovery was 67% and 63%, respectively, according to JLC.
Replacing Flooring, Drywall, Paneling, or Ceiling Tiles
Total flooring costs are typically divided into materials and labor, or—if you plan on doing the labor yourself—just materials. The cost of installing new flooring in an old home ranges from $150–$2,900 per square foot for materials and installation or $50–$1,400 per square foot for materials only.
The final bill will also depend on the type of flooring you install. Laminate flooring is the most budget-friendly, at $1–$4 per square foot, while solid hardwood and ceramic tile cost $3–$10 per square foot and $5–$10 per square foot, respectively. Natural stone can cost up to $20 per square foot.
Updating Plumbing
Replacing the plumbing in an older home has immediate and far-reaching benefits for its current and future owners. In addition to reducing the potential for leaks, low water pressure, and poor water quality due to aging pipe material, upgraded plumbing can increase the home’s energy efficiency and improve its occupants’ quality of life.
Depending on the home’s condition and needs, plumbing costs can range from $10,000 to upwards of $20,000 for the whole home. However, current homeowners may subsequently be able to increase the home’s asking price, as it gives prospective buyers peace of mind knowing they’re buying an updated system.
Insulation Upgrade
Owners of older homes looking for a 100% return on their home improvement investment recovered every penny of the $2,500 they spent on average in 2022, per the NAR. In addition to full cost recovery, homeowners also benefit from more energy-efficient homes.
Roofing
At an average of $30,680, replacing an asphalt shingle roof costs less than replacing a standing-seam metal roof ($49,928) and returns a nearly 10 percentage point higher cost recovery of 57%, according to JLC. However, owners of older homes can still recoup roughly half (48%) of their new roof costs with a standing-seam metal roof.
How To Determine Your Home Value
Homes have multiple values, but the fair market value is among the most informative. Separate from the value assessed by an appraiser and that which determines your property tax duty, the market value represents the price buyers are willing to pay for your property. Below are several ways you can evaluate your home’s value, according to Rocket Mortgage:
- Search for your home on multiple home valuation, real estate brokerage, and home listing sites.
- Hire a professional appraiser to inspect your home in person.
- Consult with a local real estate agent for a competitive market analysis.
- Compare homes in the area that have recently sold yourself.
- Review your prior property tax assessments by requesting them from your local county assessor’s office.
“The highest-value properties today are the ones that respect old-world craftsmanship while integrating modern conveniences,” says Johansen.
“Older homes require flexibility and problem-solving know-how,” says Michael Frisch, associate professor at the University of Missouri-Kansas City, but there’s a real need “to preserve these links to culture, heritage, and workmanship.”
Owners of older homes may find it more challenging to value the work they’ve put into the physical structure and surrounding grounds. However, aligning home improvements or upgrades with the intent to appeal to prospective buyers can help homeowners directly link their expenditures to the upgrade’s value. Typically, buyers often draw the same conclusions, recognizing the underlying value of these enhancements.
