As home prices are soaring amid the booming real estate market, you might think it’s time to buy, renovate and sell a home for a net profit. According to a recent study from the United States, in the first quarter of 2021, the average gross profit in the United States generated $ 63,500 in gross profit. WalletHub – not a bad amount.
But that being said, results can vary and one huge variable is location. For WalletHub’s study, 172 major cities (including the 150 largest in the US and at least two major cities in each state) were compared across three categories to determine the best and worst cities for house relocation.
The first category, “market potential,” had a big impact on ROI and how it changed in 2020 from a year earlier, before the pandemic. Among other factors, he also compared prices, the share of apartment buildings in each city, property taxes, and where and by how much the homes are being overpriced. The quality of life category looked at local schools, crime rates, jobs and unemployment, economic growth, and other factors. The last category was “renovation and renovation costs,” which also vary from location to location. Fair warning: Current shortage of materialslumber, for example, may overestimate your projected costs.
Sioux Falls, South Carolina has proven to be the best home remodeling destination due to its low renovation costs and good quality of life. Newark, NJ came in last place with low scores in all three categories. The largest return on investment was in Pittsburgh, although the value of the home was not particularly high and the cost of renovation was not particularly low, so moving the home was not as lucrative as in other cities. For thrifty fins, Mobile, Alabama had the lowest average purchase price and lowest kitchen renovation costs, placing the city in sixth overall.