It is not so much a matter of an email address not being available since the old account has been deleted, it is a matter of Apple not letting you re-use an address once it has been used for another account. See what Apple says:
From: How to delete your Apple ID account - Apple Support
"Can I use the primary email address for my deleted Apple ID account to create a new Apple ID or with another existing Apple ID account?
No, once your Apple ID is deleted, you can't use the email address that you used with it to create a new Apple ID. In addition, you can't use that email address with another existing Apple ID except as a rescue [notification] email. Also, if your primary Apple ID email address is with a Custom Email Domain, it can never be reused to create an Apple ID after your Apple ID is deleted, even if the domain ownership changes."