Over the past decade, fixer-uppers were romanticized by HGTV shows and renovation influencers. “Buy the worst house on the best block” became a kind of real estate gospel. But in 2025, that script is flipping—especially in affluent, established markets like Chicago’s North Shore suburbs.
According to a recent Better Homes & Gardens article, demand for fixer-uppers is at a multi-year low across the country. And here on the North Shore—in areas like Highland Park, Northbrook, Wilmette, Glencoe, and Deerfield—the change is especially noticeable. Move-in ready homes are seeing faster sales, more offers, and stronger prices, while homes that “need work” are sitting longer and often selling for less.
Let’s break down what’s behind the shift—and what buyers and sellers in the North Shore need to understand right now.
NATIONAL TREND: Fixer-Uppers Lose Their Shine
The Better Homes & Gardens article cites data from Zillow showing that homes in need of work are now selling for 7.3% less than similar move-in-ready homes. That’s the largest discount in over three years.
Why the change?
- High interest rates: With mortgage rates near 7%, many buyers are already stretching their budgets just to buy the house—leaving little room for post-purchase renovations.
- Inflation and labor shortages: Material costs are up significantly since 2020, and contractor availability has tightened. What once felt like a “fun project” now feels like a financial and logistical burden.
- Lifestyle shift: The pandemic taught many of us to value comfort and usability right away. Few want to move into a construction zone.
LOCAL IMPACT: What’s Happening on the North Shore?
We’re seeing the same trend play out in the North Shore suburbs—but with even sharper contrasts.
North Shore Snapshot (April 2025):
- Median Sale Price: $645,000 (+11.1% YoY)
- Homes Sold: 994 (-3.5% YoY)
- Median Days on Market: 45 (down from 47 last year)
What stands out here is the drop in sales combined with rising prices. Buyers are being more selective, but when the right home comes along—especially one that’s turnkey—they’re willing to compete and pay a premium.
We've seen multiple offer situations in every North Shore, north and northwest suburban suburb this spring—but almost exclusively on homes that are move-in ready or recently renovated. Homes that need updating, even cosmetic work, are sitting longer and often requiring price cuts.
COST OF RENOVATION IN 2025
For buyers who do consider a fixer-upper, the cost reality hits hard:
- Average kitchen remodel (North Shore, mid-range): $80,000–$120,000
- Bathroom remodel: $25,000–$50,000
- Window replacement: $25,000+
- Roof replacement: $15,000–$40,000
- HVAC upgrade: $12,000–$20,000
Even modest projects can blow past budgets. What used to be a manageable $50K rehab now looks more like $100K+. And in many cases, contractors are booked months out, adding another layer of stress.
THE BUYER PSYCHOLOGY IN 2025
In the current environment, the mindset of today’s buyer has changed:
- “What’s the cost to move in?” is replacing “What could this place become?”
- With less equity from their sale (or none, in the case of first-time buyers), people can’t fund big projects the way they could in a rising market.
- Many North Shore buyers—especially relocating families—need homes that are functional now, not in 6–12 months.
- Apprehension around supply chain delays, permit wait times, and unknown issues has made buyers wary of any home that “needs work.”
This is especially true in towns like Winnetka, Wilmette, Highland Park, Glencoe, Northbrook, Deerfield, Lake Forest, Buffalo Grove, and more where highly rated schools are a big draw for relocating families and first-timers coming from the city of Chicago. These buyers want to close in June and be settled before the school year. A fixer-upper timeline just doesn’t fit that plan.
WHAT THIS MEANS FOR SELLERS
If you’re thinking of selling a home in Highland Park, Glencoe, or other North Shore suburbs and your home isn’t updated—here’s what to consider:
Strategy #1: Minor Pre-Listing Improvements. Small, high-ROI projects can bridge the gap between “needs work” and “ready to go.”
- Paint (neutral colors, light tones)
- Refinish floors
- Replace outdated light fixtures
- Update cabinet hardware
- Declutter and stage
Even these small upgrades can make a home feel fresh—without going overboard on cost.
Strategy #2: Pricing It Right. If you choose to sell a home in “as-is” condition, price accordingly and market to a different audience (e.g., investors or renovation-minded buyers). Be ready to sit on the market longer, and don’t expect a bidding war.
Strategy #3: Provide Vision and Value. If you can’t renovate, show buyers what’s possible. Include mockups, contractor quotes, or virtual staging to help people envision the potential. A little creativity can go a long way.
WHAT THIS MEANS FOR BUYERS
If you’re a buyer open to a project, there may still be opportunity—but you need a smart strategy:
Be Realistic About Scope. If it needs more than paint and floors, get professional estimates. Don't assume you can DIY your way to savings. Most major jobs require permits, trades, and time.
Budget for Overages. In 2025, surprises are expensive. Always pad your renovation budget by 15–25%. If you’re planning to spend $100K, expect $115–125K—and plan your financing accordingly.
Know Your Loan Options. Look into rehab loan products like:
- FHA 203(k)
- Fannie Mae Homestyle Loan
- Construction-to-permanent loans
These allow you to bundle the cost of purchase and renovation into one loan.
Work with the Right Professionals. Don’t go it alone. Work with a local agent (like us) who understands renovation timelines, costs, and resale value in your specific neighborhood.
