In the nineteenth century the Princtonians, despite some hyper-spiritualist statements (Hodge, 451f., 453), clearly affirmed that the eternal state would be on the new earth, though at times this is termed heaven (Hodge, 457, 460-62). Bavinck provides a much clearer defense of the new earth as the eternal home of the redeemed (page 716ff.).
Dispensationalists have long held to a re-created earth in the eternal state. Scofield and Chafer seem to have taught that Israel would dwell on earth for eternity while the church would dwell in heaven (Reimers’ Eschatology notes). Alva McClain states, “The ‘heaven’ and ‘earth’ here undoubtedly refer to the physical universe. The ‘first’ or original universe passes away, and is replaced by a ‘new’ universe. This does not necessarily mean the annihilation of our present world of matter; for the Greek kainos may mean new in character rather than in substance. The same term is used of the regenerated believer: he becomes a ‘new creation’ (II Cor. 5:17, ASV) in a crisis which does not annihilate the personal entity but transforms it” (McClain, 510).
Though the popular view of the eternal state remains an eternal existence in heaven, several popular works, including Randy Alcorn’s Heaven and N. T. Wright’s Surprised by Hope, have argued for the eternal state on the recreated earth.
Bibliography
Alcorn, Randy. Heaven. Carol Stream, IL: Tyndale, 2004.
Bavinck, Herman. Reformed Dogmatics: Volume 4: Holy Spirit, Church, and New Creation. Edited by John Bolt. Translated by John Vriend. Grand Rapids: Baker, 2008.
Hodge, Archibald Alexander. Outlines of Theology. New York: Robert Carter and Brothers, 1863.
McClain, Alva J. The Greatness of the Kingdom. Chicago: Moody, 1959.
Wright, N. T. Surprised by Hope. New York: HarperOne, 2008.