IRVINE, CA — Home flipping activity in the U.S. dropped to its lowest level since 2018 during the first quarter of 2025, according to ATTOM’s latest U.S. Home Flipping Report. The report shows that 67,394 single-family homes and condominiums were flipped, representing 8.3% of all home sales, down from 8.7% in the same period last year but up from 7.4% in the fourth quarter of 2024.
Despite the slight increase in share compared to the previous quarter, overall home flipping remains subdued, reflecting broader challenges in the housing market. Profit margins also continued their downward trend, with the typical flipped home yielding a gross profit of $65,000, a decrease from $70,000 in the preceding quarter. The average return on investment (ROI) fell to 25%, down from 28% in Q4 2024 and significantly lower than the recent high of nearly 49% recorded in late 2020.
“The competitive home market means high prices, which is good for short-term investors on the selling end,” said Rob Barber, CEO at ATTOM. “But that dynamic is also making it harder to find under-priced homes to buy up, ultimately squeezing profit margins for the industry.”
Regional Trends and Profits
Flipping activity varied by region, with the highest shares of flips recorded in Macon, GA (21% of all home sales), Warner-Robins, GA (20.6%), and Atlanta, GA (15.9%). Conversely, larger metro areas such as Honolulu, HI, and Seattle, WA saw the lowest flipping rates, both below 6%.
Gross profit margins also differed across markets. Buffalo, NY, topped the list with a 102.1% ROI, followed by Pittsburgh, PA (100.4%) and Scranton, PA (89.9%). However, some major cities such as Austin, TX (1% ROI) and Dallas, TX (3.7%), reported notably lower profit margins, underscoring the challenges faced by flippers in high-cost markets.
Homes in more affordable metro areas provided better profitability. Flipped homes purchased for less than $225,000 yielded a median ROI of 46.4%, whereas homes in the $225,000–$400,000 range returned just 22%, and those exceeding $400,000 gave an ROI of 19%.
Trends in Financing and Time to Flip
Cash purchases dominated the first quarter, with 62.2% of flipped homes bought without financing. However, this figure was consistent with Q1 2024 levels and slightly lower than the 63.4% recorded in Q4 2024.
Flippers also grappled with longer turnaround times. The average time to complete a flip rose from 157 days in Q4 2024 to 164 days in Q1 2025.
Outlook on the Flipping Market
While home flipping remains a viable strategy for some investors, rising purchase prices and declining returns continue to pose significant challenges. “It’s tricky to balance at times when the market looks like it could take a downturn,” Barber noted. “Investors don’t want to buy a property when prices are high and then see them drop before they’re ready to sell.”
The report highlights the delicate balance required for success in the home-flipping market, as investors adapt to evolving conditions and fluctuating profitability.
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