"Profits from home flips have steadily eroded over the past decade. In fall 2012, the average return on investment was nearly 63%. In the first quarter of 2025, it was 25.1% before expenses the smallest margin ATTOM has recorded since 2008. The median gross profit was $65,300, down 4% from the first quarter and 13.6% from a year ago. Median purchase prices climbed to a record $259,700, while the median resale price held at $325,000."
"We're seeing very low profit margins from home flipping because of the historically high cost of homes, said Rob Barber, CEO at ATTOM. The initial buy-in for properties that are ideal for flipping, often lower priced homes that may need some work, keeps going up. As prospective homeowners get priced out of the middle and high end of the market, they're more likely to be competing with flippers over the same homes."
Home flipping profits have declined sharply over the past decade, dipping from an average return of nearly 63% in fall 2012 to 25.1% before expenses in Q1 2025, the smallest margin since 2008. Median gross profit fell to $65,300, down 4% quarterly and 13.6% year-over-year, while median purchase prices rose to a record $259,700 and median resale held at $325,000. High acquisition costs and rising buy-in for renovation candidates have compressed margins and increased competition between flippers and house-hunting buyers. Flipping activity slowed in 86% of metros quarter-over-quarter and margins declined in most markets.
Read at www.housingwire.com
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