top of page

27.5 Years of Useful Life?


If you own an investment property, you know the rule.....The IRS says that the “useful life” of a home’s improvements is 27.5 years. This figure is used to calculate the value of depreciation mostly related to investment real estate, but its a number worth noting for other reasons. The average US homeowner lives in their home around half this timespan: As of 2018, the median duration of homeownership in the U.S. is 13 years. Median tenure has increased by 3 years since 2008 and as mortgage interest rates are higher, I bet that's rising.

These days, many people view properties 7 years and older as 'old and outdated'. Perhaps a result of all the home improvement shows? The perception is often even more extreme amongst the wealthy whose eyes are glued to the latest and greatest interiors in Architectural Digest and other media outlets. Mostly this is related to finishes, not systems. As a general rule, AC units typically last about 15-20 years, heating systems and windows. Roofs can last longer depending on type and location. Shingle siding lasts about 20 years and painted exteriors should be repainted within 10 years. All this may help explain why the IRS sees the length of a home's 'useful life' at 27.5 years, a timeline mostly related to depreciation.


The median age of a US home is about 39 years.....how much cosmetic and structural work is required over time depends largely on the quality of construction and the location of the home, specifically its exposure to harsher climates. At least 58 million US homes are older than 20 years of age. When buying or selling a home, a detailed evaluation of condition is invaluable. It's important not to focus on the "new and shiny" things. Often things that appear dated or at 'end of life' are not, and vise versa. We've all had appliances that break down after two years, right? On broker tour the other day, we were talking about a Maytag washing machine that was still in the house. Someone remembered having the exact model in her family home. Apparently, it's still working even though it isn't sexy or new.


So....the point is.....old doesn't necessarily mean broken but always do your due diligence!

  • Debora Sanders Realtor Instagram - Your Central Coast Realtor
  • Debora Sanders Realtor Facebook
  • Debora Sanders Realtor Youtube
  • Debora Sanders Realtor Linkedin

Sotheby's International Realty
3775 Via Nona Marie Suite 100, Carmel CA 93923
831-624-9700

License: DRE#01966114

PSA_logo_edited.png
WCR logo.jpg
ILHM_Member_Seal_RGB_Small_1187628351_9922.png
ILHM_GUILD_Seal_RGB_Small_1187628351_1170.png
ILHM_CLHMS_Seal_Grayscale_thumbnail_125_1187628351_7872.png

Debora Sanders is a real estate salesperson licensed by the state of California affiliated with Sotheby's International Realty. Sotheby's International Realty is a real estate broker licensed by the state of California and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting, or other professional advice outside the realm of real estate brokerage.

*All Rights Reserved*

Designed by Kollaborativ  

bottom of page