Fixer-upper homes prove popular as affordability lifeline

As home prices and mortgage rates continue to strain affordability, buyers are increasingly turning to fixer-upper properties as a lower-cost way to enter the housing market.

A recent analysis by Realtor.com found that homes marketed as fixer-uppers receive 52% more page views per listing than comparable affordable homes.

Searches for the term “fixer-upper” on Realtor.com in July were more than three times higher than in 2021.

“Fixer-uppers give buyers a way to break into the housing market at a time when affordability is still stretched thin,” said Danielle Hale, chief economist at Realtor.com. “For those with the vision and a toolbox, fixer-uppers provide both a starting point in the market and the chance to create a home that’s truly their own.

“For sellers, listing their home as a fixer-upper at a lower price may generate more interest online than if they spend extra money on upgrades to make it move-in-ready.”

The median list price for a fixer-upper is $200,000 — about 54% less than the $436,250 median for all single-family homes. The typical fixer-upper has three bedrooms, two bathrooms, was built in 1958 and measures 1,628 square feet.

By comparison, single-family homes nationwide average 2,000 square feet, the report said.

More listings, smaller share

Fixer-uppers made up 5.2% of listings in July, down from 6.1% four years ago, according to Realtor.com.

Still, the number of such listings has risen, from 66,619 in 2021 to 79,175 this year — an increase of nearly 19%.

These properties also spend slightly longer on the market, averaging 53 days to sell compared with 50.5 days for similar homes. However, that gap has narrowed since 2021 as rising housing costs have made renovation projects more appealing.

Widespread opportunities

The Midwest, Northeast and South show the strongest opportunities for buyers willing to take on repairs.

St. Louis, Detroit, Jackson, Miss., Toledo, Ohio, and Dayton, Ohio, ranked among the top markets for fixer-uppers.

Markets with the highest share of fixer-uppers also tend to have fewer new construction projects — often due to land constraints or regulatory hurdles.

That makes older homes more prominent in the housing stock and a more affordable option for buyers willing to invest in renovations, the report added.