Fix-and-flips fill a critical entry-level home vacuum, data reveals

"Local independent investors delivered 120,193 homes priced below $261,000 in 2025. While those homes aren't regarded as new builds, some of them were either uninhabitable or vacant for extended periods of time prior to their renovations due to a lack of maintenance and repairs."

"By revitalizing these barely habitable homes, largely located in rural areas and dilapidated urban neighborhoods, small, independent investors serve a key role in tackling America's housing crisis. They aren't building subdivisions; they're revitalizing existing homes that would otherwise remain underutilized and returning them to productive use."

"In comparison, homebuilders sold 37,931 homes below that price threshold last year. The median sales price of new homes sold in December was $414,000, according to U.S. Census Bureau data."

Fix-and-flip investors delivered 120,193 homes priced at $261,000 or below in 2025, significantly outpacing homebuilders who sold only 37,931 starter homes at that price point. Many renovated properties were previously uninhabitable or vacant due to neglect. These independent investors primarily operate in smaller municipalities, rural areas, and exurban communities where such affordable housing exists. By revitalizing deteriorated homes that would otherwise remain underutilized, small investors address housing shortages in dilapidated urban neighborhoods and rural regions. Meanwhile, homebuilders focus on larger, more expensive new construction, with median new home prices reaching $414,000 and average sizes declining from 2,465 to 2,155 square feet since 2015.

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