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"The material is worn out," "The substance is out of date," etc.
Explanation: I honestly cannot see a realistic way to provide an adequate translation without more extensive context than provided. Depending on what "Bausubstanz" we are talking about, the translation could be:
The material is worn out.
The substance is out of date.
The structure is archaic.
The matter is obsolete.
The material is outdated.
The structure is outmoded.
Etc., etc. etc.
Fuad Yahya Works in field Native speaker of: Arabic, English PRO pts in category: 4
the building(s) is/are decrepit/outmoded
Explanation: Fuad's list is nice. I like the 'outmoded' particularly. I wish merely to add the possibility of 'decrepit', and to note that it is unclear whether an individual building or a group or even a whole city quarter is meant - in the latter case the technical 'substance' would no longer be fitting.
Perhaps the fuller 'no longer conforms to modern requirements/standards' would be more apt for 'veraltet'.