Residential demolition activity in 2025 declined 0.1% year-over-year but remained above pre-pandemic levels. According to NAHB analysis of data from Construction Monitor, permits pulled for residential demolition have been increasing since 2018, with the exception of 2020, when building-related activities broadly stalled. Demolition activity rebounded sharply in 2021 and 2022 but has since plateaued. Even with the recent stall, demolition permits in 2025 were still 34.2% higher than in 2018, underscoring the extent to which activity remains elevated relative to pre-pandemic norms.
While the data do not differentiate between partial or full demolitions, teardowns are often an indicator of redevelopment and neighborhood reinvestment, and thus, signals future construction. Previous NAHB survey analysis indicated that teardown-related construction projects made up approximately 7% of single-family starts in 2024.
At the state level, demolition activity is highly concentrated, with California, Texas, and Florida—the three most populous states—usually leading the nation in demolition permits. However, from 2023 through 2025, New Jersey ranked third in total demolition permits, surpassing Texas. New Jersey’s elevated demolition activity reflects the age of its housing stock. Approximately 73% of homes in the state were built before 1980, out of which 18% were built before 1939, leaving many properties functionally obsolete or in need of replacement. In response, several municipalities have pursued targeted redevelopment and blight reduction initiatives. For example, Trenton, the capital city, launched one of its largest blight reduction projects in 2023, aimed at revitalizing distressed neighborhoods and expanding the supply of quality housing.
In 2025, New Jersey accounted for approximately 10.4% of all residential demolition permits nationwide. Florida recorded the largest share at 14.6%, followed by California at 13.3%. Texas remained a significant contributor at 7.2%, while New York ranked fifth with about 4.1% of total activity. Collectively, the top five states accounted for nearly half of all residential demolition permits issued in 2025, highlighting the high degree of geographic concentration at the state level.
At a smaller geographic scale, the year-to-year variability is substantially higher. To account for this volatility, examining cumulative demolition permitting since 2018 provides insight into where demolition activity has been persistently concentrated over the current cycle. On this basis, Los Angeles County, CA accounted for the largest share of 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%). Together, these five counties accounted for nearly 15% of all demolition activity nationwide over the period.