How House Flipping Impacts the Housing Market

 

The Impact of House Flipping on the Market

There are not enough homes to go around. The population has been growing faster than the housing market for over a decade, resulting in the housing demand we know today. While this may be great for neighborhood prices, it also means that there are always more families looking for a new home than there are homes available to buy or rent.

Of course, the problem isn't just slow construction planning. It's also that many older homes are removed from the market because the properties are not sufficiently maintained. That is where the noble industry of house flipping finds its niche. What may seem like a profitable home renovation hobby really plays a vital role in the ecosystem of the housing market.

 

House Flipping: Bringing Homes Back To the Market

The best homes for flipping are those that have become too shabby on the surface for safe family life, but only require a bit of "elbow grease" to get them back into clean, safe, and modern condition. These homes need repainting, upgraded appliances, and perhaps a few simple replacements like doors and handrails before they are beautiful, modernized, and ready to welcome a new family in residence.

Each time a house flipper does their thing, a home that would have slipped into decrepitude is instead restored to housing supply and the available market.

 

Why Houses are Lost Without a Flip

There are many circumstances that cause houses to fall below the residential quality level. Often, a home will not be repaired or properly maintained for the last 10 or 20 years that it belongs to a single owner. These homes are inherited, but in a condition that is far from move-in ready with now-ancient appliances and many undtended maintenance problems.

In other situations, a home will experience damage that the owner can't afford to fix. The property is temporarily unlivable, but it's condition gets worse over time, the longer it goes unrepaired.

Home flippers keep an eye out for any house that needs only one major repair or a basic wave of upgrades - and through this route can rescue houses that might otherwise fall permanently out of the loop.

 

Increasing Livable Properties for Local Families

At any given time, the current housing supply is calculated by the number of move-in-ready homes on the market. Homes that are out of commission due to poor maintenance or damage cannot be included in the housing supply. This means they are not available for local families ready to buy or rent a home.

When a house flipper restores a home to the market, they are also increasing the local housing supply. Housing development of new neighborhoods can only go so quickly. The industry of house flipping, on the other hand, can restore many near-lost homes every year with fresh updates and attractive modern remodels.

Families are often delighted to buy or rent a home that has been recently renovated, featuring energy-efficient appliances and welcoming, safe, family-ready updates.

 

Restorations in the Hearts of Cities and Towns

Housing development works by creating ever-more-distant suburbs. More homes are created, but they also come with longer commutes and greater distances from the heart of nearby cities and towns. House flipping, on the other hand, often focuses on properties in high-demand neighborhoods where one home out of a dozen has slipped into disrepair.

These homes provide a shorter commute and closer access to features like shopping centers, entertainment, good schools, and local parks. Flipped homes are an essential part of the housing market, and many are even more modern and attractive than their neighbors who are updating more slowly under long-term owners.

 

Flipping Homes Make Housing Markets Thrive

What is the impact of home flipping on local housing markets? Flipping restores valuable properties back to the market, and increases the housing supply to provide desirable homes for local families. Flipping also rapidly modernizes properties in aging neighborhoods and ensures that restored homes stay on the market for another several decades with a single year (or less) of renovation work.

In other words, house flippers are an essential and beneficial part of the housing market, whether your plan is to quickly resell a property or build your own rental home portfolio of recently restored home.

Explore the potential of house flipping with an experienced property management partner like Leaf Management.