A potential key to homeownership
As affordability inhibits many house hunters, opting for a fixer-upper could offer an attainable path to homeownership.
A report from StorageCafe found that these types of properties can go for hundreds of thousands less than move-in ready homes in the same cities.
If renovations don’t scare you, check out which popular housing markets provide the largest savings from turnkey price points.
Check your home buying options. Start hereEmbracing the fixer-upper
High home prices, interest rates and competition all paint the picture of low affordability in the housing market.
However, those willing to tap into their HGTV dreams may have a cheaper option in home buying: the fixer-upper. Because they require work and time, they typically come with lower listing prices compared to move-in ready homes. Even after accounting for renovation costs — which vary by location, similar to real estate values — these properties can end up saving borrowers thousands.
“Buying a fixer-upper remains a viable option for many cash-strapped buyers looking to secure a property in a prime location,” said Mirela Mohan, real estate editor at Yardi. “In Los Angeles, where real estate prices reach for the stars, turning to a fixer-upper is often the most feasible path to homeownership for first-time buyers.”
The City of Angels displayed the greatest potential savings, with a $945,000 difference in median prices from a turnkey property to a fixer-upper. Kansas City, Mo., was next with a potential savings of $229,900, followed by Dallas at $217,000.
For its report, StorageCafe analyzed over 70,000 active for-sale listings in the most populous U.S. housing markets. It found that fixer-uppers had a median price of $283,000 versus $399,900 for turnkey homes, good for a difference of $103,478.
Below is the full list of the report’s 51 cities, ordered by potential money savings between a fixer-upper and a turnkey house. The asking price and listing share data were captured on Feb. 27, 2024, and include single family homes, townhouses, duplexes and triplexes.
| Rank | City | Share of Fixer-Upper Listings | Turnkey Median Asking Price | Fixer-Upper Median Asking Price | Potential Savings | 2023 Median Home Improvement Loan Size |
| 1 | Los Angeles | 26% | $1,995,000 | $1,050,000 | $945,000 | $155,000 |
| 2 | Kansas City, Mo. | 13% | $399,900 | $170,000 | $229,900 | $65,000 |
| 3 | Dallas | 12% | $500,000 | $283,000 | $217,000 | $105,000 |
| 4 | Chicago | 19% | $424,000 | $235,000 | $189,001 | $75,000 |
| 5 | Bakersfield, Calif. | 7% | $436,500 | $274,500 | $162,001 | $75,000 |
| 6 | Corpus Christi, Texas | 10% | $324,700 | $164,000 | $160,700 | $75,000 |
| 7 | Tulsa, Okla. | 12% | $325,000 | $172,450 | $152,550 | $65,000 |
| 8 | Fresno, Calif. | 13% | $452,050 | $303,500 | $148,550 | $85,000 |
| 9 | Omaha, Neb. | 7% | $358,000 | $210,000 | $148,000 | $55,000 |
| 10 | Colorado Springs, Colo. | 6% | $575,000 | $438,500 | $136,500 | $55,000 |
| 11 | Louisville, Ky. | 13% | $319,950 | $185,000 | $134,950 | $65,000 |
| 12 | Raleigh, N.C. | 9% | $532,998 | $398,250 | $134,748 | $85,000 |
| 13 | Long Beach, Calif. | 20% | $972,000 | $837,499 | $134,501 | $155,000 |
| 14 | Las Vegas | 6% | $529,839 | $400,000 | $129,839 | $85,000 |
| 15 | Minneapolis | 20% | $330,000 | $204,950 | $125,050 | $65,000 |
| 16 | Albuquerque, N.M. | 7% | $399,000 | $275,000 | $124,000 | $55,000 |
| 17 | Oklahoma City | 13% | $292,990 | $178,200 | $114,790 | $55,000 |
| 18 | Columbus, Ohio | 12% | $279,450 | $164,900 | $114,550 | $75,000 |
| 19 | Aurora, Colo. | 2% | $624,970 | $513,990 | $110,980 | $105,000 |
| 20 | Jacksonville, Fla. | 10% | $349,993 | $239,450 | $110,543 | $85,000 |
| 21 | Atlanta | 16% | $459,900 | $350,000 | $109,900 | $85,000 |
| 22 | Cincinnati | 19% | $279,450 | $169,900 | $109,550 | $55,000 |
| 23 | Houston | 1% | $342,990 | $235,495 | $107,495 | $95,000 |
| 24 | Orlando, Fla. | 7% | $489,900 | $386,000 | $103,900 | $85,000 |
| 25 | Baltimore | 26% | $237,450 | $135,000 | $102,450 | $85,000 |
| 26 | Memphis, Tenn. | 15% | $229,900 | $128,900 | $101,000 | $45,000 |
| 27 | Indianapolis | 9% | $299,900 | $199,450 | $100,450 | $65,000 |
| 28 | El Paso, Texas | 5% | $299,899 | $200,000 | $99,899 | $55,000 |
| 29 | Philadelphia | 28% | $277,900 | $181,500 | $96,400 | $75,000 |
| 30 | Lexington, Ky. | 14% | $395,000 | $299,500 | $95,500 | $65,000 |
| 31 | Wichita, Kan. | 11% | $300,000 | $205,000 | $95,000 | $45,000 |
| 32 | Oakland, Calif. | 25% | $799,000 | $704,500 | $94,500 | $205,000 |
| 33 | Miami | 14% | $780,000 | $686,944 | $93,056 | $105,000 |
| 34 | Riverside, Calif. | 14% | $717,450 | $625,000 | $92,450 | $105,000 |
| 35 | San Antonio | 6% | $325,000 | $235,000 | $90,000 | $75,000 |
| 36 | Phoenix | 6% | $529,000 | $439,500 | $89,500 | $105,000 |
| 37 | Fort Worth, Texas | 6% | $365,006 | $278,000 | $87,006 | $105,000 |
| 38 | Tampa, Fla. | 10% | $505,000 | $425,000 | $80,000 | $85,000 |
| 39 | Washington, D.C. | 26% | $849,900 | $775,000 | $74,900 | $105,000 |
| 40 | Virginia Beach, Va. | 8% | $490,000 | $425,000 | $65,000 | $65,000 |
| 41 | Milwaukee | 14% | $169,900 | $110,000 | $59,900 | $55,000 |
| 42 | Charlotte, N.C. | 7% | $435,000 | $384,950 | $50,050 | $85,000 |
| 43 | New Orleans | 11% | $387,500 | $339,500 | $48,000 | $105,000 |
| 44 | Cleveland | 29% | $125,000 | $79,900 | $45,100 | $65,000 |
| 45 | Arlington, Texas | 12% | $376,000 | $334,000 | $42,000 | $105,000 |
| 46 | Detroit | 29% | $94,900 | $59,950 | $34,951 | $65,000 |
| 47 | Denver | 7% | $629,900 | $609,000 | $20,900 | $105,000 |
| 48 | San Diego | 11% | $899,000 | $934,000 | −$35,000 | $125,000 |
| 49 | New York City | 13% | $630,000 | $789,900 | −$159,900 | $105,000 |
| 50 | San Jose, Calif. | 14% | $1,394,375 | $1,575,000 | −$180,625 | $255,000 |
| 51 | Austin, Texas | 8% | $589,900 | $849,000 | −$259,100 | $125,000 |
Of the top 51 most populous cities, four actually had higher median fixer-upper prices. Austin, Texas, had the highest discrepancy at $259,100. San Jose, Calif., New York and San Diego rounded out the quartet with differences of $180,625, $159,900, and $35,000, respectively.
While this seems counterintuitive, a few factors tip the scales. Those higher prices can be attributed to the fixer-uppers having highly desirable locations or more space compared to newer developments in
Financing a home renovation or rehabilitation
In today’s housing market, borrowers have a cabinet of grants and lending products to meet their renovation needs.
Even better, there are six mortgage types specifically for fixer-uppers. These loans cover both the home’s purchase price and the cost of rehabilitation. These include Fannie Mae’s Homestyle Renovation, Freddie Mac’s CHOICERenovation and CHOICEReno eXPress, the FHA’s 203(k), the VA’s renovation loan, and the USDA’s renovation loan.
Like any loan product, they all have different eligibility requirements to meet in order to qualify. A mortgage professional can answer questions, weigh your options and help choose the right mortgage for you.
Check your home buying eligibility hereThe bottom line: Buying a fixer-upper
If you’re a house hunter who’s not afraid of sweat equity, buying a fixer-upper could be your ticket to homeownership.
Doing so could lead to big savings, even in some of the nation’s largest and most popular housing markets. Plus, adding the right features could help your investment. Just make sure you know what to look for and avoid when shopping so you don’t buy a money pit.
If you’re ready to start, reach out to a local lender today.
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