The fix-and-flip market slowed in 2025, with only 30% of flippers reporting "good" sales in the second quarter, down from 38% year-over-year. Data from John Burns Research and Consulting and Kiavi show declines in sales tied to economic uncertainty, elevated mortgage rates, and rising material and labor costs. Flippers in Florida and Northern California face the steepest headwinds because high acquisition and rehab costs and rising insurance expenses compress margins. Insurance difficulties and competition are reducing deal flow and profitability. Average home sellers face longer timelines, adjusted pricing expectations, and greater difficulty finding buyers.
The fix-and-flip market is experiencing a slowdown, affecting both flippers and average home sellers. Data from John Burns Research and Consulting and Kiavi show a decline in sales, which can be attributed to economic uncertainty, higher mortgage rates, and increased material expenses. Flippers in specific regions like Florida and California face challenges due to high costs and competition, affecting their profitability and ability to secure insurance.
Only 30% of flippers reported "good" sales in the second quarter of 2025, down from 38% in the same period last year, indicating a declining market. Factors such as elevated mortgage rates, material costs, and labor shortages are contributing to the challenges faced by flippers in turning a profit. Regions like Florida and Northern California are particularly affected by weak sales, which are driven by high acquisition and rehab costs and rising insurance expenses.
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