We have utility under the System Menu > Process Manager > Data Extracts > Category: Q Toolbox to assist with cleaning up these outstanding household records called Household – Manager:
This will remove any household address that is associated to students and/or contacts that are not currently active. What this process will do is set the hlduniq in studemo and contacts to 0, rather than the existing hlduniq. Each student and contact will still have their address stored in the studemo and contacts tables, but we remove them from the hshlds table based on the hlduniq.
When utilizing this toolbox item, you can first view how many records will be changed by leaving the Report/Process selection to Report first. Doing so will give you a list of all records that will be changed. You will notice the number of pending records is returned and the Delete Status column shows Pending (see screenshot below). This notes no records have yet been changed. 
Once you review the returned records, you can change the Report/Process dropdown to Delete and all records with a Pending status will then be updated. These records will then no longer appear in your list of current households to select from when submitting household information for current students.