Fixer-Upper Homes Offer Significant Discounts in Select U.S. Metros

What's Happening?

Recent research by Realtor.com highlights the financial advantages of purchasing fixer-upper homes in select U.S. metros. These properties, typically older single-family homes, are available at substantial discounts compared to move-in ready homes, with savings ranging from 56% to nearly 78%. The top metros for these discounts include Jackson, MS; St. Louis, MO; Birmingham, AL; Pittsburgh, PA; and Toledo, OH, where discounts exceed 67%. Fixer-uppers are more prevalent in the Midwest and Northeast, accounting for roughly 5% of all single-family listings, with some areas like Syracuse, NY, having 11.5% of properties needing renovation. These homes offer budget-friendly options for buyers looking to customize their dream home or flip for profit, typically featuring three bedrooms, two baths, and priced around $200,000.

Why It's Important?

The availability of fixer-upper homes at significant discounts presents opportunities for buyers and investors in the U.S. housing market. These properties allow buyers to enter the market at a lower price point and customize their homes according to personal preferences. For investors, fixer-uppers offer potential for profit through renovations and resale. The trend is particularly relevant in markets with high demand and low supply, primarily in the Midwest and Northeast, where buyers can capitalize on the scarcity of move-in ready homes. However, buyers should carefully assess their renovation skills and financial capabilities before committing to a fixer-upper, as the cost and effort required for renovations can vary significantly.

What's Next?

As the demand for affordable housing continues, the market for fixer-upper homes is likely to grow, especially in regions with limited supply of move-in ready properties. Buyers and investors may increasingly turn to these homes as a viable option for entering the housing market or generating profit. Real estate professionals and platforms like Realtor.com may continue to provide insights and resources to help buyers navigate the challenges of purchasing and renovating fixer-uppers. Additionally, local governments and housing authorities may explore incentives or support programs to assist buyers in undertaking renovations, contributing to neighborhood revitalization and economic growth.