Why the doer-upper dream is dying

The Kiwi tradition of buying a fixer-upper, rolling up your sleeves, and adding value through sweat equity is fading fast. New research from TradeMe reveals only 6% of buyers are now explicitly looking for a doer-upper, while just 15% are interested in original-condition properties. 

That’s a dramatic shift from the property market culture that dominated for decades. Instead, 49% of active buyers now want homes that feel new or updated. One-third (33%) are targeting renovated existing homes and 16% are chasing new builds. 

The fading DIY dream creates both challenges and opportunities for property investors. 

Numbers tell the story 

TradeMe’s survey of 2,200 Kiwis’ property preferences paints a clear picture of changing priorities. “In a market with fluctuating building costs, many buyers would rather pay more for a finished product than face the uncertainty of a renovation,” Trade Me Property spokesperson Casey Wylde said. 

Poor economics is a likely factor in this reluctance. According to Nick Goodall, head of research at Cotality (formerly CoreLogic), materially increasing the quality of a property through a full renovation will lift the value by just 4% to 5%. That includes double-glazing windows and modernising bathrooms and kitchens – much more than cosmetic touch-ups. 

When renovation costs can easily hit $80,000 to over $300,000 for a full home makeover, and a standard kitchen runs $15,000 to $25,000 (or $45,000+ for mid-range upgrades), the maths starts looking less appealing. Add a bathroom renovation at $15,000 to $30,000, and you’re quickly approaching the kind of money that makes buyers question whether the headache is worth it. 

Unpredictable building costs aren’t helping. Auckland renovation costs typically run 10-20% higher than the national average, with skilled tradespeople commanding $90-$150 per hour compared to $70-$120 elsewhere. 

Then there’s the compliance maze. Post-July 2025, all rental properties must meet Healthy Homes Standards, with landlords facing fines up to $7,200 per breach. Even new builds don’t automatically meet these standards, meaning professional Healthy Homes assessments (typically $200-$300) have become essential. For anyone buying a fixer-upper rental property, compliance costs now sit on top of renovation budgets. 

Time-poor buyers simply can’t commit to lengthy renovation projects. A full bathroom renovation can take weeks, with high demand for tradies in Auckland often stretching timelines compared to national averages. Labour shortages mean start dates can be delayed by 1-2 weeks, and Auckland Council approvals for plumbing or structural changes add another 1-3 weeks. 

Where this leaves investors 

For property investors, the death of the doer-upper dream creates a split market with distinct opportunities. 

Renovated properties now command premium pricing. If you’ve already upgraded a rental to modern standards, you’re sitting on an asset that appeals to 49% of buyers actively seeking turnkey solutions. Properties with recently renovated features saw increased demand in Q2 2025, with 51% of CBRE valuers reporting increased demand for recently renovated properties. 

On the flip side, unrenovated properties face headwinds. That growing 6% of buyers still chasing fixer-uppers represents a shrinking pool of competition, but also a shrinking pool of potential buyers when you eventually sell. If you’re holding original-condition properties, understand that buyer resistance will likely strengthen, not soften. 

For investors considering purchasing doer-uppers as a value-add strategy, the equation has changed. Property investment coach Steve Goodey told RNZ that structural work, like replacing roofs or piling, doesn’t increase property value because buyers assume a house should have those things. You need a “pretty full-scale renovation to even get a 5% lift” in value, according to Cotality’s data. 

The smart play 

Rather than chase diminishing renovation margins, savvy investors might consider two alternative approaches. 

First, focus on properties that already meet modern expectations but are priced below market due to presentation issues. Minor cosmetic work: fresh paint, updated fixtures, professional styling can shift buyer perception without the time and cost drain of structural renovations. 

Second, if you’re committed to renovation plays, scrutinise the numbers. When renovation costs approach or exceed 50-60% of a rebuild, you’re likely better off comparing long-term value against starting fresh. This is particularly true for older homes where you’re replacing joinery, plumbing, wiring, structural elements, and cladding. Costs escalate quickly once you’re touching everything. 

And remember, most owner-occupiers aren’t doing up properties for financial gain anymore. “The improved value doesn’t necessarily matter if you’re going to be living in it for a decent period of time,” Goodall noted. “The data sort of proves that you need a pretty full-scale renovation to even get a 5% lift … you don’t do it for that reason, you do it to live in yourself.” 

The DIY dream is dying, and the market is speaking: buyers want certainty, not sledgehammers. 

Need help understanding how this shift affects your property portfolio? Give us a call on 0800 GOODWINS.