Exhausting other options, buyers flock to fixer-uppers

Houses under $100,000 see prices escalate amid pandemic

National /
May.May 12, 2021 09:00 AM
Exhausting other options, buyers flock to fixer-uppers

(iStock)

Even cheap homes have gotten expensive.

In ZIP codes where the median home price was less than $100,000 in early 2018, it has since risen by 42 percent, according to a CoreLogic Inc. analysis for the Wall Street Journal. That is double the increase for areas where the median was between $150,000 and $200,000 and triple for those where it was above $300,000.

Low-cost homes that need a lot of work and are frowned upon by mortgage providers had seen little price escalation in previous years. However, as a lack of available homes reduced options for buyers, they began scooping up those homes too.

The increased demand among first-time homebuyers and people moving to the suburbs has the potential to revitalize the economies of areas where the housing market has suffered in recent decades, such as Detroit, Cleveland and Youngstown, Ohio.

However, some experts fear that the appreciation could prevent some families, especially young ones, from purchasing homes.

In Detroit, the least expensive ZIP code had a median home sale price of $45,500 in early 2018. Now it is 113 percent higher.

The trend has continued during the pandemic, during which home prices have surged nearly everywhere. In Detroit, home values climbed 24 percent in the 12 months through April, according to Zillow, vastly reducing the supply of quality affordable homes in the city’s better neighborhoods.

“The good houses are instantly gone,” manufacturing worker Tekeela Daniels, a mother of two teens, told the Journal. “It’s hard out here getting a house.”

[WSJ] — Sasha Jones





    Related Articles

    arrow_forward_ios
    9 Prospect Park West and 2 Northside Piers in Williamsburg (Photos via Google Maps and 2 Northside Piers/Facebook)
    A Park Slope co-op was one of the priciest deals inked last week
    A Park Slope co-op was one of the priciest deals inked last week
    42 Old Montauk Highway, Montauk
    The unsellables: Even in a hot market, these Hamptons homes don’t move
    The unsellables: Even in a hot market, these Hamptons homes don’t move
    220 Central Park South with Michael Cantanucci and 378 West End Avenue (Photos via Getty Images, Jim.henderson/Wikimedia, 378WEA)
    Discounts for Manhattan’s luxury homes have shrunk
    Discounts for Manhattan’s luxury homes have shrunk
    Gov. Andrew Cuomo (Getty/Illustration by Kevin Rebong)
    NY flooded with nearly 100K rent relief applications in two weeks
    NY flooded with nearly 100K rent relief applications in two weeks
    Sweden is one of the countries most at risk (Getty)
    Here are the countries most at risk of a housing bubble
    Here are the countries most at risk of a housing bubble
    Los Angeles, New York and Miami metro areas are in the top 10 of owner-occupied million dollar homes. (iStock)
    These metro areas have the most — and fewest — million-dollar homes
    These metro areas have the most — and fewest — million-dollar homes
    A closer look at Compass’ trail of litigation over its business tactics
    A closer look at Compass’ trail of litigation over its business tactics
    A closer look at Compass’ trail of litigation over its business tactics
    Salesforce CEO Marc Benioff and Amazon's Jeff Bezos are backing the startup (Getty, Arrived)
    Bezos-backed Arrived Homes is latest startup to expand real estate investment
    Bezos-backed Arrived Homes is latest startup to expand real estate investment
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...