America had a love affair with ‘fixer-upper’ homes. That may be over

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The Fixer-Upper Dream Faces New Realities in Today’s Housing Market

For generations, purchasing a property requiring renovation represented an accessible route toward both owning a home and accumulating financial security. Television programming centered around home transformations captured widespread attention, while the practice of buying distressed properties and reselling them flourished into a thriving industry. Young purchasers willingly exchanged their labor for reduced acquisition costs. However, this once-popular strategy is experiencing declining enthusiasm. According to recent data from Zillow, properties needing work currently command prices 14 percent below comparable homes ready for immediate occupancy—the most significant gap documented in recent memory. This represents nearly twice the premium gap observed during the previous year, when such homes traded at 7.3 percent less than their turnkey counterparts.

Historical patterns tell a different story. Prior to the global health crisis beginning in 2020, listings featuring descriptors like “needs TLC,” “fixer,” “good bones,” or “needs work” demonstrated stronger sales performance relative to similar properties, as Zillow’s analysis revealed. Today’s economic landscape has fundamentally altered the financial equation for many prospective buyers.

Rising Costs Challenge the Traditional Model

Multiple economic pressures have converged to make renovation projects considerably pricier and more time-intensive than in previous decades. Import tariffs, persistent inflation, and a notable deficit in available construction labor have collectively transformed the fixer-upper proposition. CNN spoke with numerous first-time purchasers who acquired older properties requiring substantial investment. A recurring sentiment emerged: elevated mortgage rates and soaring home values had already compressed their financial flexibility, leaving minimal resources for essential upgrades.

Juli St. George, an Atlanta-based real estate professional, observed this transition firsthand among her clientele. “The Chip and Joanna Gaines era has passed,” she explained, referencing the television couple whose HGTV program “Fixer Upper” inspired countless renovation dreams. She noted that previously, buyers sought out older family homes where they could personalize spaces incrementally while saving systematically for additions. “It’s not happening anymore,” she concluded. (HGTV operates under Warner Bros. Discovery, which also owns CNN.)

Real Stories from Recent Buyers

Molly and Matt Dodge exemplify this shifting reality. The couple purchased their inaugural residence in Arlington, Vermont, earlier this year, fully aware the property required attention. What drew them was the expansive space—slightly over one acre—with sufficient bedrooms allowing their two children to stop sharing rooms. However, renovation estimates quickly mounted. Professional contractors provided quotes ranging from $30,000 to $50,000 merely for septic system replacement, with additional thousands needed for complications including mold growth, water leaks, ant colonies, and carpenter bee infestations. The couple has already invested approximately $10,000 in self-directed repairs.

After several months navigating the renovation journey, their initial enthusiasm has diminished considerably. “We currently wish we built instead of bought,” Molly Dodge shared with CNN, capturing a sentiment of mounting frustration.

Industry Data Confirms the Trend

During much of the 2010s, the fixer-upper formula proved reliable: acquire discounted property, fund improvements, and benefit from appreciating valuations. That straightforward calculation has deteriorated substantially. Government statistics examined by the National Association of Homebuilders indicate that residential construction material costs—excluding energy expenses—climbed at their most rapid rate in three years during April. This acceleration has persisted, with the most recent figures showing a 4.6 percent annual increase.

A 2025 survey conducted by the Associated General Contractors of America, the construction sector’s premier trade organization, revealed that 45 percent of responding firms encountered project postponements stemming from labor or subcontractor availability issues. These workforce constraints have simultaneously elevated expenses and extended timelines.

Corporate earnings statements from major home improvement chains corroborate consumer behavior shifts. Both Home Depot and Lowe’s communicated to shareholders that purchasers are delaying substantial renovation initiatives—projects typically linked to fixer-upper acquisitions. Lowe’s chief executive Marvin Ellison characterized May’s conditions as “the most difficult housing market that I have faced in this business since the financial crisis,” emphasizing that the downturn particularly affected do-it-yourself participants.

Luke VanFleet, age 29, experienced similar challenges when acquiring his first property this spring. He and his fiancée purchased a 700-square-foot one-bedroom cottage in Traverse City, Michigan, anticipating renovation expenses. Contractor estimates surprised them: three professionals quoted roughly $40,000 for siding and window replacement, while a separate estimate reached $6,000 for a fundamental heating and cooling installation. The cumulative financial burden has made many reconsider whether the fixer-upper path remains viable in today’s economic environment.

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