Home flipping volume falls to 5-year low, margins hit 2008 levels

"With prices staying elevated, investors are finding it harder to secure deals that deliver strong returns. Flippers are having to get more creative to maintain profitability, Barber added. That could include taking on older homes, as the median flipped property in 2025 was built in 1978, the oldest since we began tracking, along with tighter cost control and more disciplined renovation strategies."

"The typical flip generated a $65,981 gross profit, down from $77,000 in 2024, with return on investment (ROI) falling to 25.5% the lowest since 2008, compared to 32.1% the prior year. Competition for homes remains strong in many markets due to constrained supply, Rob Barber, CEO of ATTOM, said in a statement."

"More than one-third of flips were acquired with the help of financing in 2025. ATTOM found that 37.7% of flipped homes were purchased with some form of investor financing, up from 36.9% in 2024. Metros with the highest share of financed acquisitions included San Diego (61.3% of flipped homes purchased with financing); Lincoln, Nebraska (60.6%); and Des Moines, Iowa (59.9%)."

Home flipping returns reached their lowest levels since 2008, with median gross profits declining from $77,000 to $65,981 and ROI falling from 32.1% to 25.5%. Elevated home prices and constrained supply create intense competition, forcing investors to pursue older properties and implement stricter cost controls. The median flipped property was built in 1978, the oldest on record. Flipping activity declined in 142 of 215 major metropolitan areas, with significant decreases in Salisbury, Maryland, Tallahassee, Florida, and Lafayette, Indiana. Conversely, some markets like Binghamton, New York, and Boulder, Colorado experienced substantial increases. Investor financing usage rose to 37.7% of flipped homes, with geographic variation in cash versus financed acquisitions.

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