Buying a fixer-upper remains a viable option for many buyers trying to stretch their dollar in the current environment of still-rising home prices, bidding wars, low inventory and rising interest rates. While these properties do require buyers to put in a significant investment in physical work—not to mention time—they are a real solution for cost sensitive buyers.
Asking the question “which cities are best to find a fixer-upper” StorageCafe conducted deep research into 61,200 active listings on Point2 by breaking those properties down into price, number of other fixer-upper listings in the area, home size and lot size. The study also took into account local storage costs as properties that are listed as fixer-uppers are generally smaller (1,400 square feet compared to an average of 1,900) and it’s more likely that owners will need to store a portion of their possessions as work is completed.
All-in-all, the research found that in the 50 largest metropolitan areas, properties that were listed as a fixer-upper were 32% cheaper on average than standard homes coming in at $307,000 and $448,000, respectively. This comes to an average savings of $155,000 for the average buyer; price differences can be even higher in high-cost cities such as San Francisco and Los Angeles, where savings can top $400,000 to other hotspots like Atlanta, Dallas and Houston where you could still find savings of $250,000.
Among the top 50 cities, Milwaukee, Wisconsin emerged as the best city for getting a fixer-upper. It’s status as a pre-industrial city, it has a generous amount of investor of homes that need work. These properties make up 12% all listings for the city, double the overall average of all other cities.
In Milwaukee, a savvy buyer can pick up one of these homes for $80,000, lower than prices for regular, non-fixer-upper homes ($195K).
Click here to view a complete ranking of the best cities to find a fixer-upper.