CHESTER COUNTY, PA — Home flippers across the United States saw profits sink to their lowest level since 2008 in the second quarter of 2025, according to new data from ATTOM. While the national slowdown reflects rising acquisition costs and thinner margins, Chester County’s housing market continues to show resilience, supported by strong buyer demand and steady price growth.
Nationally, home flips accounted for 7.4 percent of sales between April and June, down from 8.3 percent in the first quarter. Gross profits fell to $65,300, with an average return on investment of just 25.1 percent—far below the 62.9 percent return recorded in 2012 and less than half the returns seen during the 2016–2021 peak. The median purchase price for flipped homes rose to $259,700, the highest on record, while the median resale price held at $325,000.
“These historically high acquisition costs are driving down margins,” said Rob Barber, CEO of ATTOM. “Flippers are competing with first-time buyers for the same properties, and the buy-in price keeps climbing.”
Chester County, however, remains an outlier in several respects. The county’s median home sale price peaked near $620,000 by mid-2025, nearly double the national flipped home resale price. Homes consistently sold at or near asking price, underscoring continued demand from buyers despite broader affordability challenges. Inventory also ticked higher, with more than 1,000 homes available in February, up 7.8 percent from the previous month, giving buyers more choice but also tightening competition in the entry-level segment.
While profitability for flippers in Chester County is almost certainly being pressured by the same national trends—higher purchase prices, longer turnaround times, and stronger competition from traditional buyers—the county’s fundamentals remain comparatively favorable. Rising prices and strong demand may help offset some of the margin compression, particularly for investors with access to cash and efficient renovation strategies.
Economists note that the long-term impact of large-scale flipping in Chester County is still uncertain. Increased inventory may present opportunities for investors, but the heightened competition with first-time buyers could continue to reshape the local market.
Nationally, markets such as Georgia, Tennessee, and Ohio saw the highest concentration of flipping activity, while profit margins in many metro areas fell sharply. In Pennsylvania, metro areas like Pittsburgh and Scranton bucked the trend, posting some of the nation’s highest profit margins above 100 percent.
For Chester County, the message is mixed: investors face the same cost pressures as elsewhere, but the region’s healthy demand and high resale values suggest flipping remains viable—albeit with narrower margins and higher risk than in past cycles.
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