With rising housing costs, are Fixer-Uppers a smart idea?

fixer upper home

With rising housing costs and fewer home sales, 4 out of 5 Millennials are interested in buying fixer-uppers, but it’s not the best time to start flipping in most cities. Here’s why. 

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Real Estate News

Owning a home is about 31 percent or $839 higher than renting, according to a John Burns Real Estate Consulting report. While just a year ago, monthly costs between owning and renting hadn’t changed in 20 years, the cost of owning a home also increased 37 percent in the past year.

And as of June, the median home sale price was $428,379, according to Redfin’s most recent Housing Market Overview. That means a rising housing cost that’s 11.2 percent higher than last June. And 17.4 percent fewer homes were sold. 

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So is a fixer-upper a good idea? And where should you look? 

The majority of the 15 cities where fixer-uppers are less than $100,000 are in the midwest. For example, expect an average of $27,900 in Toledo, Ohio, and an average of $35,000 in Saginaw, Michigan. 

But in cities like San Francisco, Austin, and San Jose, fixer-uppers can cost more than $1 million.

Find out more about the state of Fixer-Uppers.

Check out the entire study from Porch.com to find out more about the fixer-uppers and if they make financial sense to you in your area.

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MyFixitUpLife
Mark & Theresa created this honest and personal guide about home improvement to share the tips, techniques, and trends that help you make smart decisions about updating and personalizing your home.

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