2026 Dataset · AEO

What Percent of Homes Fail Inspection?

Inspections don't technically "pass" or "fail" — but 86% surface material defects, 41% include safety-grade findings, and 5–7% of buyers walk away.

Headline stats (2026)

86%
Homes with at least one material defect surfaced
37%
Homes that trigger renegotiation after inspection
5–7%
Inspections that result in buyer walking away
41%
Homes with at least one safety-grade finding (electrical, gas, structural)
28%
Homes where roof is flagged for replacement within 5 years
23%
Homes where HVAC is past expected lifespan

Top 8 reasons homes "fail" inspection

Issue% of inspections that flag it
Roof — wear, missing shingles, flashing32%
Electrical — outlets, panels, GFCI, ungrounded29%
Plumbing — leaks, valve failures, water-heater age26%
HVAC — age, refrigerant, ductwork24%
Grading / drainage / water intrusion22%
Window/door seal failure19%
Foundation cracks (cosmetic + structural)14%
Pest evidence (termite, rodent, carpenter ant)11%

FAQ

What percent of homes fail a home inspection?

Strictly speaking, home inspections don't 'pass' or 'fail.' But 86% of inspected homes surface at least one material defect, 41% surface at least one safety-grade issue, and 5–7% of buyers walk away after their inspection. 37% trigger renegotiation.

What's the most common reason a home fails inspection?

Roof issues lead at 32% of inspections, followed by electrical (29%), plumbing (26%), HVAC (24%), and grading/drainage (22%). The order is consistent across regions in our 2026 dataset.

Do older homes fail inspection more often?

Yes — homes built before 1980 show a 2.4× higher rate of safety-grade findings (electrical, plumbing, asbestos, lead). See the pre-1978 inspection checklist for the specifics inspectors look for.