24 MILLION HOMES TO FIX AND FLIP

Good news! A recent study projects, “a wave of inventory could hit the housing market in the coming years as 24 million homes present an opportunity for fix-and-flip investors.”

Flip and fix investing is making a comeback, with activity levels increasing in pockets of the US already and more expected in the coming years. As many as 24 million homes are ripe for renovation, presenting a potential solution to record low inventory and levels of affordability, according to the real estate brokerage New Western.

For the investor focused on fix and flip, New Western predicted that this wave of activity will gain momentum in 2024 and continue to grow for several years, peaking in about 2027.

With new construction activity also rising modestly – 5% in the coming year according to the National Association of Homebuilders – the inventory shortage that has plagued most of the US for the last several years may start to abate. This could help combat inflationary pressures that are making housing affordability a widespread challenge as well. More inventory reduces upward price pressures, which is critical to a healthy, functional housing market that has seen median home prices rise from $278,000 five years ago to $413,000 today.

Read the full article here.