Flipping profits collapse
Home‑flipping profits have plunged to the lowest level seen since the Great Recession, per a new ATTOM analysis — margins are compressed and the flip play is materially tougher right now. High purchase prices and tighter spreads are driving the drop, so rehab-driven returns need much stricter underwriting. (rismedia.com)
Investors flipped 297,045 single‑family homes and condos nationwide in 2025, down 3.9% from 309,050 the year before and the fewest annual flips since 2020. (attomdata.com) The typical flip produced $65,981 in gross profit in 2025, a decline from roughly $77,000 in 2024, translating to a 25.5% gross return on investment versus 32.1% the prior year. (attomdata.com) ATTOM’s data show the median investor purchase price for a flipped property was about $259,019 in 2025 while the median resale price was $325,000, figures that underpin the compressed dollar‑and‑percentage returns. (attomdata.com) Profit margins fell year‑over‑year in 142 of the 215 metropolitan statistical areas that met ATTOM’s thresholds, and the median flipped property was built in 1978—the oldest median build year since ATTOM began tracking. (attomdata.com) The largest metro declines in flipping rates were Salisbury, MD (down 42.2%), Tallahassee, FL (down 37.5%), Lafayette, IN (down 36.0%), Evansville, IN (down 32.9%) and Warner Robins, GA (down 32.6%), while Binghamton, NY rose 136.4% year‑over‑year. (attomdata.com) More than a third of flips were acquired with financing—ATTOM reports the financed share rose from 36.9% in 2024 to 37.7% in 2025—and the median hold time from purchase to resale was about 160 days. (attomdata.com)
