T
he value of older homes is often underestimated, but new data suggests that pre-1940 homes can be worth more than newer ones in certain states and cities. According to US Census Bureau data, the median home built since 2020 is worth around $462,000 nationwide, while the overall median home, built in 1981, is valued at $340,000.

    However, in seven states and Washington D.C., pre-1940 homes are typically more valuable than the median home. These states include California, Hawaii, Louisiana, Oregon, Florida, Massachusetts, and Alaska. In California, for example, the median pre-1940 home value is $930,100, exceeding the overall median by over $200,000.

    Experts attribute this trend to location rather than size or age. Many of these older homes are situated in prime real estate areas with high demand, such as historic downtown cores and beachfronts. In Santa Barbara, California, for instance, pre-1940 homes are worth nearly double the local median due to their unique character and charm.

    In Massachusetts, older homes on Cape Cod may be driving up prices, with a 24% bump in value compared to the median home. Similarly, in Florida, 10 metro areas have seen a trend of older homes being more valuable than typical homes, including Panama City and Naples-Marco Island.

    Realtor.com senior economist Joel Berner notes that location is the primary driver behind this trend, with cities that preserve their historical neighborhoods and prime real estate areas seeing higher values for pre-1940 homes. This is particularly true in cities like Boston and New Orleans, where efforts to maintain historic character have contributed to increased demand for older homes.

    The trend also holds in Alaska and Hawaii, where pre-war homes are not only more valuable than the median home but also more valuable than newer homes built since 2020. In Anchorage, AK, pre-1940 homes are worth $797,500, while in Honolulu, HI, they're valued at $1.08 million.