In the ever-evolving world of New York City real estate, one trend is making a comeback among first- and second-time homebuyers. With low inventory and increasing sales activity, many buyers are choosing larger apartments that need some work but remain "livable” with fully functional but outdated kitchens and bathrooms that can be updated over time.

Until recently, the preference leaned toward new developments or fully renovated homes, largely due to the soaring costs of renovations. However, a segment of buyers is now shifting toward properties that require some TLC, allowing them to make improvements gradually.

This shift highlights a growing emphasis on flexibility and long-term vision over immediate perfection. In today’s blog, we explore the reasons behind this trend and weigh its advantages and challenges.

Why the Shift?

In recent years, NYC real estate saw a surge in demand for fully renovated apartments, driven by high renovation costs and the inconvenience of living through construction. With rising material prices and limited contractor availability, many buyers opted to pay a premium for move-in-ready homes. Now, with prices still below peak levels and interest rates in flux, buyers are reconsidering their options.

Larger apartments are becoming more appealing. While fully renovated homes carry steep price tags, purchasing a fixer-upper allows buyers to secure more space at a lower cost. In many cases, refreshing an older kitchen or bathroom is far less expensive and time-consuming than a full-scale renovation. This shift is making larger homes more attainable, particularly for first-time buyers who, just a few years ago, may not have thought it possible.

The Advantages of Buying a Fixer-Upper

1) Living in the Space First

One of the biggest advantages of buying an apartment that needs work is the ability to live in it first. This gives buyers time to experience the space, understand what works and what doesn’t, and plan renovations more thoughtfully. By living in the apartment, they gain insight into its quirks and how their daily routine interacts with the layout, leading to more strategic renovation decisions.

2) A Larger Home Now, Renovations Later

New buyers often struggle to balance a mortgage with high carrying costs, especially when renovations are involved. Purchasing a livable apartment that needs work allows them to avoid the hefty upfront cost of a fully renovated home. This approach lets buyers move in, get settled, and postpone major renovations until they’re financially ready. Additionally, it eliminates the burden of carrying two homes during an extended renovation, reducing financial strain.

3) Renovating When Financially Ready

Many homebuyers are adopting a more patient approach to renovations. Instead of depleting their savings on immediate upgrades, they choose to wait until they are in a stronger financial position. This allows renovations to be completed in stages, reducing the initial financial burden and eliminating the pressure to finish everything at once.

4) Understanding Building Rules Before Renovating

Many NYC buildings, especially co-ops, have strict renovation rules. By moving in first, buyers can familiarize themselves with these guidelines and plan accordingly, avoiding costly delays or complications. Some buildings have restrictions on when work can be done or what changes are permitted, so understanding these policies early helps homeowners navigate the renovation process smoothly.

5) Renovating Gradually for a Smoother Process

A gradual approach to renovations prevents homeowners from feeling overwhelmed. Tackling projects in stages allows them to adapt renovations to their budget and evolving needs. This method makes the process more manageable—both financially and emotionally—while ensuring the home aligns with their lifestyle over time.

6) More Time to Plan, Budget, and Save

Without the pressure to renovate immediately, homeowners have time to research, budget, and plan. They can carefully select contractors, compare material options, and get the best value for their money. Additionally, they can take advantage of sales and discounts, something much harder to do when rushing to complete renovations.

The Disadvantages to Consider

While there are many advantages to this approach, it also comes with trade-offs. Living in a home that needs work can present challenges that some buyers may find difficult to manage.

1) Living with Things You Don’t Like

One of the biggest downsides is tolerating features you don’t love. Whether it’s outdated appliances, worn flooring, or unappealing paint colors, certain aspects of the apartment may feel frustrating until updates are made. For some buyers, this can make it harder to feel truly at home.

2) Living Through a Renovation

Renovating while living in the apartment can be disruptive. Dust, noise, and construction can create stress, especially if the timeline extends longer than expected. This is particularly challenging when updating essential spaces like the kitchen or bathroom. Some owners choose to temporarily move out during the most intense phases—such as demolition or major structural work—to minimize disruption, though this adds an extra layer of planning and potential expense.

3) The Inconvenience of a Work in Progress

Even with a gradual renovation plan, there’s the ongoing inconvenience of living in an unfinished space. If furnishings and decor must wait until renovations are complete, the home may feel incomplete for an extended period. Unexpected delays or complications can also add frustration, making the process feel longer than anticipated.

A Thoughtful Approach to Home Buying

This trend reflects a broader shift toward more strategic home buying. Rather than focusing solely on an apartment’s immediate condition, buyers are considering its long-term potential. By choosing a larger, more affordable space that needs work, they secure a home in the competitive NYC market while shaping it to fit their needs over time.

If you’re considering this approach, it’s essential to weigh the pros and cons carefully and be prepared for the challenges of living with certain imperfections and navigating future renovations.