Fixer-upper homes can be full of historic charm but also urgent projects. When it comes to buying a home in 2026, it can sometimes feel like the only options on the market are sad gray flip listings, something perfect that’s out of budget, or historic homes that need a ton of TLC.

Channeling your inner Chip or Joanna and fantasizing about fixing up an older home is understandable, but is transforming a rundown home into a dream home on a shoestring budget worth it in today’s economy, or does it drain your wallet before you even move in?

We asked two real estate professionals to weigh in on whether it’s a favorable market for homes that need extensive work.

Got A Small Budget? A True Fixer Upper is Not A Good Idea

According to real estate broker Michelle Mumoli, investing in a true fixer upper isn’t worth it for inexperienced buyers on a small budget. But the keyword is “true” here.

She defines a true fixer upper as a home that needs a significant amount of work. Think: foundational work and rot repair, not just a few cosmetic fixes.

And in her experience, the amount of work that a property needs is usually quite a bit more than you initially think.

“Truly understanding the costs of a renovation is important because if you have a romanticized notion from watching reality TV about purchasing a fixer upper, but you have no concept of what it entails, you will be in over your head,” she says. “If you are on a budget, you will also be in over your head.”

A Livable Fixer Upper is An Exception

Marissa Castello, relator with Maison Real Estate, says a fixer upper could be worth buying in 2026 if it’s a home you plan on living in for a while.

“I’m a big fan of the idea of a ‘livable fixer upper,’ which is a home you can move into right away and renovate gradually over a few years.”

The key is that you’re able to live in the home while renovations are happening.

“With rising rental and renovation costs, it’s becoming harder to afford living in one place while renovating another for six months or more,” she says. “But a home that’s functional from day one allows you to tackle projects at your own pace. The kitchen one year, the bathrooms the next, and so on.”

So if you purchase a fixer upper with the intention of making it a home rather than a fast flip, Castello notes that you’ll get to build equity while transforming the space into something that fully reflects your taste.

Looking Beyond 2026

If your budget doesn’t allow for a fixer upper right now, the good news is that both Castello and Mumoli say there may be less competition for these properties in the next five years.

“We’re seeing more and more people shy away from fixer uppers because of the cost and stress of renovations,” Castello says. “It’s becoming increasingly difficult to get work done in a timely, cost-effective way. Because of this, move-in-ready homes are often far more attractive and tend to fly off the market much faster.”

Is Buying A Fixer Upper Worth It in 2026? We Asked Real Estate Pros What They Look For by Tessa Cooper | The Spruce