In 2025, residential demolition activity experienced a 0.1% decrease year-over-year, but it continued to exceed pre-pandemic levels.
With the exception of 2020, when building-related activities were broadly suspended, permits for residential demolition have been increasing since 2018, according to NAHB analysis of data from Construction Monitor.
Demolition activity experienced a significant increase in 2021 and 2022, but it has since reached a plateau.
The fact that demolition permits in 2025 were still 34.2% higher than in 2018, despite the recent pause, underscores the extent to which activity remains elevated in comparison to pre-pandemic norms.
Although the data does not distinguish between partial and full demolitions, teardowns are frequently indicative of redevelopment and neighborhood reinvestment, and as a result, they suggest future construction. In 2024, teardown-related construction projects accounted for approximately 7% of single-family starts, according to a previous NAHB survey analysis.
Demolition activity is extremely concentrated at the state level, with California, Texas, and Florida – the three most populous states – typically leading the nation in demolition permits.
Nevertheless, New Jersey obtained the third highest number of demolition permits from 2023 to 2025, superseding Texas.
The age of New Jersey’s housing stock is indicative of the state’s elevated demolition activity.
Approximately 73% of the state’s residences were constructed prior to 1980, with 18% of them constructed before 1939.
Consequently, numerous properties are either functionally obsolete or in need of replacement.
Consequently, numerous municipalities have implemented initiatives to reduce decay and redevelop specific areas.
Trenton, the capital city, initiated one of its most significant blight reduction initiatives in 2023 with the objective of upgrading distressed neighborhoods and increasing the availability of high-quality housing.
Approximately 10.4% of all residential demolition permits nationwide were issued in New Jersey in 2025.
Florida held the highest percentage at 14.6%, with California following at 13.3%.
Texas continued to be a substantial contributor, accounting for 7.2% of the total activity. New York, on the other hand, ranked fifth with approximately 4.1%.
In 2025, the top five states collectively accounted for nearly half of all residential demolition permits issued, underscoring the significant geographic concentration at the state level..
The year-to-year variability is significantly greater at a lesser geographic scale.
In order to explain this volatility, an analysis of cumulative demolition permitting since 2018 offers a perspective on the areas where demolition activity has been consistently concentrated during the current cycle.
Los Angeles County, CA received the most cumulative demolition permits (4.8%), followed by Harris County, TX (3.1%), Cuyahoga County, OH (2.6%), King County, WA (2.0%), and Miami-Dade County, FL (1.8%).
Over the course of the period, these five counties collectively constituted nearly 15% of all demolition activity in the United States.
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