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A few years ago I read an article (I can't remember where) about the demographics of the home supply (the actual buildings, not the homebuyers). As I remember it there was curve very similar to the baby boom of homes built after world two. There is a major problem with this in that as houses age they keep getting more expensive to maintain until there are no longer economically viable to maintain and will generally either be torn down or abandoned. Some houses will be exceptions to this like nice upscale houses in a good areas(like the ones on “This Old House” on PBS) but your typical suburban tract house will be past it economically useful life in something like 60 to 80 years (as I remember the artical). If anyone knows more about this it I would welcome more information.

I would be very cautious about buying something like a 50-year-old tract home to rent because it may be nearing the end of its useful life and even if the housing market in general continues to appreciate, that specific house may loose value becasue of its age.

Greg
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