A century-old house can command a higher price than a brand-new one. That sounds counterintuitive until you remember what buyers are actually purchasing: not a birth certificate, but a location, a floor plan, a structure and the cost of keeping it functional.
Age counts. It’s just not as important as many buyers think it is.
A 1920s home with a new roof, updated wiring, efficient heating and a well-maintained exterior may have an effective age far below its calendar age. Conversely, a neglected house built ten years ago can perform like a much older property.
This difference is reflected in valuation practice. Effective age, condition and remaining economic life are usually treated as separate considerations. In other words, a building’s date of construction is a starting point, not a conclusion.
Location is usually more powerful. A property in a constrained, desirable neighborhood benefits from scarce land, established infrastructure, schools, transport links and local amenities. Those advantages do not depreciate in the same way as a kitchen or boiler.
Research on hedonic property pricing, models that isolate the value of individual features, consistently finds that location and size are among the strongest price determinants, while the effect of age is often nonlinear and dependent on condition.
Age typically has a diminishing, sometimes U-shaped relationship with price: newer homes may command a premium, but older homes can regain value when they offer desirable character, superior construction, or a sought-after setting.
Older properties also have features that are expensive or impossible to replicate today: larger plots, higher ceilings, mature gardens, solid masonry, hardwood floors and generous room proportions. Architectural scarcity can be a pricing advantage in historic districts. Buyers are not paying for age, they are paying for the preservation of age.
New construction is not necessarily better also. It may offer better insulation, modern plumbing, and lower initial maintenance costs, but it can also have smaller rooms, high service charges, construction defects, or an untested neighborhood. “New” lessens some of the risks, but does not get rid of them.
So you shouldn’t be asking, “How old is it?” but, “What will it cost to own?” Roof condition, drainage, foundations, electrical systems, energy performance, insurance premiums and planned maintenance often matter more than the construction date. A professional survey can reveal these costs far more accurately than a listing headline.