Fixer-Upper Homes Gain Traction as Housing Costs Soar

Americans are increasingly turning to fixer-upper homes as a solution to skyrocketing housing prices and elevated mortgage rates. Realtor.com reports searches for these properties have tripled since July 2021, with buyers willing to trade immediate comfort for long-term equity potential.

These project homes typically sell at a 50% discount to median single-family prices, offering a rare foothold in today's challenging market. The median fixer-upper listed at $200,000 in July compared to $436,250 for standard properties—a compelling value proposition despite additional renovation costs.

Regional disparities show the Midwest, Northeast, and South offering particularly attractive opportunities. Marketing terms like "good bones" signal renovation potential, creating a distinct submarket within residential real estate.