For years, buying a home in need of work was seen as a more affordable path to homeownership and building wealth. Home makeover shows dominated TV, house-flipping became a booming business, and first-time buyers embraced the idea of trading sweat equity for a lower purchase price.
But lately, fixer-uppers have been falling out of favor.
Before the Covid-19 pandemic, by contrast, homes described as “fixers,” “needs work,” “TLC” or having “good bones” were more likely to sell than comparable listings, according to Zillow.
For many Americans, the math behind buying a fixer-upper no longer pencils out. Tariffs, inflation and a shortage of construction workers have made home improvement projects significantly more expensive — and often more time-consuming — over the past few years.
Dozens of first-time homebuyers who purchased aging homes in need of work expressed a common theme to CNN: High home prices and elevated mortgage rates had already stretched their budgets thin, leaving little money for the renovations needed to make their homes livable.
