Pre-war houses surpass modern counterparts' value in seven US states

When it comes to the value of a home, advanced age isn’t always a bad thing.

As a general rule, newer homes are worth more than older ones. Nationwide, the typical owner-occupied home built since 2020 is worth about $462,000, well above the $340,000 value of the overall median home, which was built in 1981, according to recently released U.S. Census Bureau data.

Meanwhile, homes built before 1940, which account for about 12% of U.S. housing stock, have a national median value of just $272,000. But in seven states and Washington D.C., pre-1940 homes are typically worth more than the median home. These states include California, Hawaii, Louisiana, Oregon, Florida, Massachusetts, and Alaska.

California has the largest price premium for pre-war homes among these states. The median pre-1940 value is $930,100 exceeding the overall median home value by more than $200,000.

The difference in values doesn’t appear to be based on size. In California at least,"the median pre-1940 home has 13% less square footage and is on an 18% smaller lot than the typical home built from 1940 onward," according to data from real estate intelligence platform LocalLogic.

At the local level in California,"there are 12 metro areas where pre-1940 values exceed typical values," with Santa Barbara County showing the largest gap nationally where older homes are typically worth $1,593,900—roughly double the local median.

Amanda Lee from The Agency explains that space for new construction is limited in Santa Barbara and nearby Montecito due to zoning restrictions."These older homes just have a character that you can't replicate," says Lee."Celebrities love to come in and live amongst these homes that have an old-world charm and glamor about them."

Lee recently listed a Santa Barbara mansion built in 1922 designed by Reginald Davis Johnson."It's rare to see a home like this come on the market," she says."They're really sought after."

On the East Coast,"Massachusetts has the most valuable stock of pre-war homes." The typical home built before 1940 in Massachusetts is worth $591,200 compared with an overall state median of $570,800.

Older homes on Cape Cod might be driving this trend. In Barnstable Town encompassing Cape Cod,"older homes are typically worth $786700—a 24% bump from the median value."

Following California,"Florida has ten metro areas where older homes are more valuable than typical ones." This includes Panama City where"pre-1940 homes are worth 123% more than local medians" and Naples-Marco Island area with"a gap of 73%."

Farther along Gulf Shore in Louisiana,the typical Louisiana home built before 1940 is valued at$286900—33%more than statewide medians.In New Orleans,the "median-priced pre-1940homeisworth76%morethanlocalstandard".

Joel Berner,a senior economist at Realtor.com,says location drives this difference."As cities expand,newer builds tendtobelargerandfartherfromcitycenterswherefactorslikewalkabilityandvibrancylendadvantagetoolderhomesincentralneighborhoods".

This trend holds true both Anchorage AK,and Honolulu HIwherepre-1940homesaremorevaluablethanevennewesthomessince2020.InAnchoragepre-warhomesclusterednearhistoriccoretypicallyworth$797500whichis115percentmorethanmedianhomevalueandinHonolulu,historicdowntownUrbanHonolulualongprimebeachfrontstypicallyworth$108million21percentmoreoverallmediansand16percentnewerhomessincethisdecade

"Homesbuiltbefore19thatarestillaroundtodayarereasonusuallyhistoricalpreservationattachedorthey'remostdesirablepartofacity"saysBerner