HGTV’s effect on real estate

By: J. David Chapman/July 12, 2018

I spend most of my days in the world of real estate. Whether it is teaching, talking, writing, selling, managing, or planning, it is generally all about real estate.

When I get home in the evening, the last thing I want to do is watch a show on television where salespeople are attempting to find the perfect beach, mountain, lake, or any other home for their client. I also believe in buy-and-hold strategies, so the nation’s obsession with flipping doesn’t do anything for me either. In fact, it amazes me that today’s media and niche-oriented television have taken what we do for a living and turned it into reality TV that millions of people find entertaining.

I may find it amazing; however, the effect that these reality shows are having on the practice of real estate is significant. Today’s students have grown up watching former model, carpenter, and veteran television personality Ty Pennington on a show called Extreme Home Makeover provide home improvements for less fortunate families. His famous line “move that bus” revealed the changes made to these homes that created emotional responses from deserving homeowners and viewers as well.

The success of this show has created similar 24-hours-a-day television programming and has raised the interest and perceived expertise of homebuyers and real estate investors. In total, I see this as an advantage to the industry and it has certainly fueled enrollment in real estate programs around the country. It is not uncommon for today’s homebuyer to enter a home and not only suggest to me that it is possible to remove a wall but also seem to know whether a wall is load-bearing or not. This in an attempt to create that coveted open floor plan that they have been programmed to desire.

Just when I think we have reached saturation of these do-it-yourself real estate investment and home improvement shows, another married couple or a set of brothers or sisters show up to sell, buy, repair, flip, love, or leave that property. So, next time we enter a property and you insist the home needs a little “shiplap” I will know you have had your daily dose of Chip and Joanna Gaines and tuned into their hit show Fixer Upper to prepare for the largest investment of your life.

J. David Chapman is an associate professor of finance and real estate at The University of Central Oklahoma (jchapman7@uco.edu).

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