Is the Era of Fixer Uppers Over?
We love a good BEFORE and AFTER. I mean, who doesn’t? Chip and Joanna Gaines even built a multi-million dollar empire on the concept, but the latest research shows that buyers are no longer flocking to fixer-uppers. They are, instead, opting for move-in-ready homes due, in large part, to greater housing/living costs and a growing desire for convenience.
Rising Demand for Remodeled Homes
Prospective buyers scroll Zillow in droves so that data serves as a great indicator for emerging trends across the U.S. Listings on Zillow that highlight a remodeled home are getting significantly more interest than other housing options producing:
26% more daily saves
30% more daily shares
Buyers are also willing to pay a premium to avoid those pesky home projects. In an analysis of over 2 million homes listed for sale in 2024, Zillow found that homes labeled as “remodeled” saw the highest sales price out of all of their 359 measured site keywords. Buyers across the U.S. were willing to pay nearly 4% more on a home that is already fixed up.
Approximately 28% of all for-sale listings that hit Zillow in 2024 mentioned being “renovated,” which also rose from years past. The pandemic drove a renovation boom. Homeowners tackled a wide array of home projects (when they weren’t making sourdough!) fueled by the need to work remotely, high home equity, and low interest rates.
Shifting Buyer Preferences
It may seem intuitive that remodeled homes would garner more interest from buyers, but that hasn't always been the case. The landscape has changed pretty dramatically in just a few years.
Prior to the pandemic, listings on Zillow that mentioned "fixer," "TLC," "needs work," or "good bones" were actually more likely to sell than listings without those terms. With the DIY movement and countless HGTV renovation shows serving as inspiration, buyers sought out the opportunity to nab a more affordable option in their desired neighborhood and put in some sweat equity to make it their own.
In today’s real estate climate, many buyers are already stretching their budget to simply purchase a home so they may not be willing or able to spend significantly more on repairs or renovations. They are focused on finding a home that meets their current needs. A renovated home may come with a higher price tag, but buyers have the opportunity to spread that additional cost over the course of a 30-year mortgage vs. absorbing the financial hit all at once to make similar upgrades themselves.
The buyer pool for fixer-uppers has also evolved in recent years. Fixer-uppers have increasingly become strategic purchases for cash-heavy investors who see renovation as a great business tool. In as little as 30 - 90 days, investors can flip the renovated home, rent it out, or turn it into a short-term rental to generate profit. Every day buyers don’t necessarily want to swim in those same waters.
The era of fixer-uppers may not be officially over, but it has stepped away from the spotlight as the appeal of move-in-ready homes is stronger than ever! What do you think? Would you take on a fixer-upper in 2025?
Cover Image: CB2