Aging Housing Stock Keeps Demolition Activity Elevated
Residential demolition activity in 2025 dipped slightly by 0.1% compared to 2024, but remained well above pre-pandemic levels. NAHB analysis of Construction Monitor data shows permits have generally trended upward since 2018, with 2020 as the only major interruption.
After a strong rebound in 2021 and 2022, activity has since leveled off. Even so, 2025 demolition permits were still 34.2% higher than in 2018.
While the data do not distinguish between partial and full demolitions, teardowns are widely viewed as a signal of reinvestment, often indicating where new construction is likely to follow. Notably, teardown-related projects accounted for about 7% of single-family starts in 2024.
Typically, demolition activity is largely concentrated in California, Texas, and Florida — the three most populous states. However, from 2023-2025, New Jersey ranked third in total demolition permits, surpassing Texas. New Jersey’s elevated demolition activity reflects the age of its housing stock, with approximately 73% of homes in the state built before 1980.
In response, municipalities in the state have expanded redevelopment efforts. For example, Trenton launched a major blight-reduction initiative in 2023 aimed at revitalizing distressed neighborhoods and increasing quality housing supply.
The top five states and their respective shares of the nation’s demolition permits in 2025 include:
- Florida: 14.6%
- California: 13.3%
- New Jersey: 10.4%
- Texas: 7.2%
- New York: 4.1%
Together, these five states accounted for nearly half of all demolition permits, highlighting strong geographic concentration.
2025 Shares of Demolition Permits (Percent)
For more details, including a more granular look at the top five counties for residential demolition, read this Eye On Housing article by NAHB Economist Catherine Koh.