U.S. home flipping activity declined in 2025 while investor profit margins fell to their lowest level since 2008, according to ATTOM’s year-end Home Flipping Report.
A total of 297,045 single-family homes and condominiums were flipped nationwide in 2025, down 3.9% from 309,050 in 2024 and the lowest annual total since 2020.
Flipped properties accounted for 7.4% of all home sales, slightly below 7.6% the previous year, ATTOM reported.
The typical gross profit on a flipped home was $65,981, down from $77,000 in 2024, resulting in a 25.5% return on investment, compared with 32.1% a year earlier.
ATTOM attributed the decline in returns to rising home prices, which have increased acquisition costs for investors.
“Competition for homes remains strong in many markets due to constrained supply,” said Rob Barber, chief executive officer at ATTOM. “With prices staying elevated, investors are finding it harder to secure deals that deliver strong returns.”
He added that investors are adjusting strategies, including targeting older properties, with the median flipped home built in 1978, the oldest on record.
Home flipping rates declined year over year in 142 of 215 metropolitan areas analyzed, including notable drops in Salisbury, Maryland; Tallahassee, Florida; and Lafayette, Indiana.
In contrast, some markets saw increases in flipping activity, including Binghamton, New York; Boulder, Colorado; and Scranton, Pennsylvania.
Profit margins declined in 70% of metro areas, with some of the largest decreases reported in Ocala, Florida; Salisbury, Maryland; and Spartanburg, South Carolina.
The median purchase price for flipped homes was $259,019, with a median resale price of $325,000.
The share of flipped homes purchased with financing rose to 37.7% in 2025 from 36.9% in 2024, while 11.3% of flipped homes were sold to buyers using Federal Housing Administration-backed loans, up from 10.7% a year earlier.
Homes flipped in 2025 took an average of 163 days to sell, one day longer than in 2024 but faster than the 176-day average recorded in 2020.
In the fourth quarter, 68,999 homes were flipped by 54,992 investors, with an average gross profit of $62,000 and a 23.6% return, the lowest since 2007.
ATTOM said rising costs and tighter margins indicate a more challenging environment for investors despite continued demand in many housing markets.
The full report is available at https://www.attomdata.com.
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