Markets With the Biggest Home Inventories in 2024
Turning empty properties into welcoming homes is rewarding and potentially profitable. A 2024 study by RE/MAX found that a majority of prospective homebuyers are considering buying fixer-uppers due to low housing inventory. Where are the best places to find properties during this period of low housing supply? We used 2023 census data to identify cities with the biggest housing inventories and ran a customer survey to find the typical home renovation budget.
Key Findings
- The highest homeowner vacancy rates are in Cape Coral-Fort Myers, Florida, Oklahoma City, and New Orleans-Metairie, Louisiana.
- Our study found that 78% of homebuyers would consider buying a fixer-upper property.
- Homebuyers had an average budget of $198,147 to purchase a fixer-upper and an additional $60,990 budgeted for renovations and repairs.
- Homebuyers looking for move-in-ready homes budget an average of $323,994 for the purchase plus renovations, which is $64,857 more than those opting for fixer-uppers.
States and Cities With the Largest Home Inventories
We located areas with the largest home inventories despite the low housing supply in the U.S. We analyzed U.S. Census Bureau data for all 50 states and major metropolitan statistical areas (MSAs) to find the country’s highest homeowner and rental vacancy rates. “Homeowner vacancy” refers to vacant properties available for sale, while “rental vacancy” refers to homes available for rent. We averaged quarterly vacancy rates throughout 2023 to provide a comprehensive view of the latest homeowner and rental vacancy rates.
Use the interactive maps and charts below to see which states and cities may be ripe for renovation ventures and property investments.
Homeowner Vacancy Rate by State
The national average homeowner vacancy rate is 0.9%. Our analysis found that the five states with the highest percentage of vacant homes available for sale are the following:
- Louisiana: 1.6%
- Oklahoma: 1.3%
- Arkansas: 1.3%
- Texas: 1.3%
- Georgia: 1.1%
Florida, Nevada, and New York also had above-average vacant home inventories, each at 1%.
Homeowner Vacancy Rate by Metro Area
Our team focused on home availability in the 50 most populated metro areas in the U.S. We found that the highest homeowner vacancy rates were in the following spots:
- Cape Coral-Fort Myers, Fla.: 2.3%
- Oklahoma City: 1.6%
- New Orleans-Metairie, La.: 1.6%
Having the most properties available for sale indicates a robust inventory for potential renovation projects.
Rental Vacancy Rate by State
Areas with higher rental vacancy rates may offer opportunities to purchase properties at lower costs, renovate them, and contribute to revitalizing the housing market. Updated rental properties can attract tenants more effectively, reducing vacancy rates over time.
The national average rental vacancy rate in the U.S. is 6.6%. The five states with the highest percentage of vacant homes for rent are the following:
- Arkansas: 11.2%
- Indiana: 10.4%
- South Carolina: 10.3%
- Alabama: 9.3%
- Texas: 9.2%
Understanding vacancy rates can help you identify areas where your investment might yield higher returns when demand increases.
Rental Vacancy Rate by Metro Area
We determined that Cape Coral-Fort Myers, Florida, Birmingham-Hoover, Alabama, and Charleston-North Charleston-Summerville, South Carolina, had the highest rental vacancy rates. The significant number of rental properties available could make these areas key locations for investors looking to refurbish properties for rent.
Rochester, New York, Worcester, Massachusetts, and Boston-Cambridge-Newton, Massachusetts-New Hampshire, had the lowest rental vacancy rates, indicating high demand along with a limited supply of rental properties.
Where Renovations Are Undertaken and Why
This piece of our study revealed where Americans have been most interested in buying and renovating homes and their motivations for doing so. We surveyed prospective homebuyers and determined that these are the most popular metro areas for purchasing fixer-upper homes in 2024:
- Raleigh, N.C.
- New York City
- Jacksonville, Fla.
- Los Angeles
- Seattle
- Houston
- Pittsburgh
- Greensboro, N.C.
- Denver
- Atlanta
Well over half of these homebuyers (68%) prioritized a property’s location over its potential return on investment (ROI), and only 32% felt that a home’s potential was most important.
Most respondents looking to purchase a home in 2024 (78%) said they’d consider buying a fixer-upper home. The majority (80%) said they intend to live in their fixer-uppers, with Gen Z leading all age groups at 88%. Purchasing a fixer-upper can cut costs, but potential downsides, such as HVAC issues or a leaky roof, could make life difficult as you renovate.
Economizing Renovations
Homebuyers had an average budget of $198,147 for purchasing a fixer-upper, with an additional $60,990 earmarked for renovations and repairs. Budgeting trends varied across metro areas.
Below are Americans’ budget allocations for purchasing a fixer-upper by select metro area:
- Los Angeles: $264,844
- Seattle: $257,639
- Denver: $257,481
- New York City: $247,850
- Raleigh, N.C.: $197,981
- Pittsburgh: $178,906
- Houston: $178,685
- Atlanta: $163,226
- Jacksonville, Fla.: $160,333
- Greensboro, N.C.: $131,571
Homebuyers in the market for move-in ready homes set aside an average of $323,994 for their purchases, including renovations. This was a $64,857 higher investment compared to those opting for fixer-uppers.
Prospective homebuyers should consider the logistics of moving into their new properties. Researching the best moving companies and factoring in estimated moving costs is important for a smooth transition. This planning ensures that the excitement of transforming a fixer-upper into a dream home doesn’t get overshadowed by unexpected moving expenses or challenges.
From Vacant to Vibrant
Fixer-uppers allow homeowners to customize their houses and create value in older properties. Our findings spotlight regions that are ripe for home renovations and offer insights into the typical buyer’s budget. Fixer-uppers remain a pivotal part of the American housing market, blending homebuyers’ dreams with practical investments and achievable transformations.
Methodology
For this study, we gathered the latest homeowner and rental vacancy rates from the U.S. Census Bureau. We focused on the largest metropolitan statistical areas (MSAs) across the U.S. and in all 50 states.
We also conducted a survey using the Connect platform in February 2024 targeting 1,004 people who plan to purchase a home. The demographic breakdown of respondents included 15% Gen Z, 52% millennials, 26% Gen X, and 7% baby boomers.
Fair Use Statement
We encourage sharing these findings for noncommercial purposes. Please include a link to this page to give readers full access to our analysis and methodology.