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

For years, buying a home in need of work was seen as a more affordable path to homeownership and building wealth. Home makeover shows dominated TV, house-flipping became a booming business, and first-time buyers embraced the idea of trading sweat equity for a lower purchase price. But lately, fixer-uppers have been falling out of favor. This year, they are selling at a 14% discount compared to similar move-in-ready homes – the steepest discount Zillow has recorded in years. That’s nearly double from last year, when fixer-uppers sold for 7.3% less than comparable move-in-ready properties. Before the Covid-19 pandemic, by contrast, homes described as “fixers,” “needs work,” “TLC” or having “good bones” were more likely to sell than comparable listings, according to Zillow. For many Americans, the math behind buying a fixer-upper no longer pencils out. Tariffs, inflation and a shortage of construction workers have made home improvement projects significantly more expensive — and often more time-consuming — over the past few years. Dozens of first-time homebuyers who purchased aging homes in need of work expressed a common theme to CNN: High home prices and elev