>>212639244In capitalist nations, just because you can afford a house doesn't mean you can afford the consequences of owning one. Most states implemented mandate homeowners insurance such that if a major disaster happens, the economy isn't permanently fucked. Of course this only works if the building code is enforced, it wasn't in California which led to all the insurance company bankruptcies after the big fires last year. So one goes the other, even if the state doesn't enforce the building code the market will as the market will refuse to accept the risk of badly built homes.
This encourages people to buy newer homes that have modern safety improvements eg grounded outlets, wiring conduits, electric heat, windows not above 48" from the floor, non-asbestos insulation, et cet and discourages older homes. In this way the availability of premodern structures slowly declines as people won't buy them. And in regards to OP's question, any house old enough to NOT have a clean water hookup is either far out in the country or some sort of outbuilding on an industrial lot, neither of which can get insurance as a home. Though they can often get insurance as something else, but using industrial properties for housing is against the law and against the policy which means no money if the property burns down or the tenants are poisoned, raped or murdered.