PHILADELPHIA, PA — The Philadelphia metropolitan area ranked among the nation’s strongest major markets for home-flipping returns in the second quarter of 2026, with a typical gross profit margin of 62.8% even as profitability continued to deteriorate nationally, according to ATTOM.
The Philadelphia region had the fifth-highest typical return among metropolitan areas with populations exceeding 1 million, trailing Pittsburgh at 81.5%, Buffalo at 76.6%, New Orleans at 75% and Virginia Beach at 63.4%.
The regional performance contrasted sharply with the national market, where the typical home flip generated a 21.5% gross return on investment. That was down from 25.7% in the first quarter and 27.6% a year earlier.
Typical gross profit nationwide fell to $60,526 from $66,932 in the previous quarter and $71,000 in the second quarter of 2025, extending a two-year decline.
“Flippers are still making money in most markets, but the typical return continues to narrow,” ATTOM CEO Rob Barber said. “The second-quarter numbers continue the general downward trend in profit margins and gross profits we have seen over the past two years.”
Investors flipped 77,991 single-family homes and condominiums during the quarter, representing 6.2% of U.S. home sales. The share declined from 8% in the first quarter and 7.3% a year earlier.
The number of flipped properties nevertheless increased from 64,760 in the first quarter, while remaining below the 80,477 recorded during the same period last year.
Flipping rates declined from the previous quarter in 162 of the 186 metropolitan areas analyzed by ATTOM. Profit margins fell quarter over quarter in 126 markets.
Returns varied substantially by location. San Antonio recorded a typical loss of 0.3%, while Dallas generated a 1.8% return, Austin 2.8% and Houston 3.7%.
Pittsburgh combined the highest profit margin among major metropolitan areas with one of the lowest flipping rates. Flips accounted for 4.5% of its home sales during the quarter.
Purchase price also played a significant role in returns. Homes acquired for $100,000 to $200,000 produced a typical 28% gross margin nationally, the strongest performance among the price ranges cited by ATTOM. Properties bought for $200,000 to $300,000 returned 26%, while those purchased for $300,000 to $400,000 returned 20%.
At the lowest end of the market, properties acquired for $50,000 or less generated a typical $15,000 loss, equivalent to a negative 38% return.
Investors also turned properties around somewhat faster. The typical flip took 161 days from purchase to resale, compared with 165 days in the first quarter and 166 days a year earlier.
The share of flipped homes sold to buyers using Federal Housing Administration-backed mortgages increased to 10.7% from 10.1% in the previous quarter, but remained below the 12.3% recorded a year earlier.
Pennsylvania had two markets among those with the highest FHA-buyer shares. FHA borrowers purchased 25.3% of flipped homes in Reading and 23.4% in Scranton.
ATTOM defines a flip as an arms-length sale of a single-family home or condominium when another arms-length transaction involving the property occurred within the previous 12 months.
Its reported gross profits exclude rehabilitation and other expenses. ATTOM noted that experienced flippers estimate those costs typically amount to 20% to 33% of a property’s after-repair value, meaning the reported gross returns do not represent investors’ net profits.
ATTOM also expanded its property-record coverage in 2026, meaning transaction-count comparisons with earlier periods may reflect both changes in market activity and broader data coverage.
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