US home flipping profits hit lowest level since 2008

The share of U.S. homes flipped by investors fell in the second quarter of 2025 while profit margins dropped to levels not seen in more than 15 years, according to new data from ATTOM.

Flippers resold 78,621 single-family homes and condominiums between April and June, or 7.4% of all sales.That was down from 8.3% in the first quarter and slightly lower than the 7.5% share in the second quarter of 2024.

The decline followed a typical seasonal trend, as flips make up a larger share of transactions in the slower winter months, ATTOM’s report explained.

Profit margins hit new lows

Profits from home flips have steadily eroded over the past decade. In fall 2012, the average return on investment was nearly 63%. In the first quarter of 2025, it was 25.1% before expenses — the smallest margin ATTOM has recorded since 2008.

The median gross profit was $65,300, down 4% from the first quarter and 13.6% from a year ago. Median purchase prices climbed to a record $259,700, while the median resale price held at $325,000.

“We’re seeing very low profit margins from home flipping because of the historically high cost of homes,” said Rob Barber, CEO at ATTOM. “The initial buy-in for properties that are ideal for flipping, often lower priced homes that may need some work, keeps going up.

“As prospective homeowners get priced out of the middle and high end of the market, they’re more likely to be competing with flippers over the same homes.”

Georgia leads the nation

Flipping activity slowed on a quarterly basis in 86% of the 183 metro areas with sufficient data, and in more than half compared with a year earlier. But several Georgia cities posted some of the highest flipping rates in the nation.

In Warner Robins, 18.5% of all sales were flips, followed by Macon (15.5%), Atlanta (13.6%) and Columbus (13%). Memphis, Tennessee rounded out the top five at 12.5%.

Among large metros, Birmingham, Alabama (11.8%); Cleveland (11.2%); and Columbus, Ohio (10.5%) also ranked high. Seattle (4.1%), New Orleans (4.5%) and Boston (4.8%) had the lowest shares.

Profit spreads narrow nationwide

Margins shrank in most markets, with quarterly declines in 58% of metro areas and yearly declines in 70%.

The sharpest quarterly downturns included Fort Smith, Arkansas, where returns fell from 76.3% to 13.1%, and Green Bay, Wisconsin, where they dropped from 70.1% to 19.3%.

Large metros with the steepest declines included Virginia Beach, Virginia (74.8% to 59.8%); Orlando (35.6% to 22.3%); and Grand Rapids, Michigan (41.4% to 28.6%).

Still, some regions remained profitable. Pittsburgh posted the highest margin at 106.8%, followed by Shreveport, Louisiana (104.2%) and Scranton, Pennsylvaia (104.1%). Buffalo, New York, also ranked high at 91.7%.

In contrast, Austin had one of the smallest returns at 5.5%, with San Antonio (7.7%) and Dallas (9.3%) close behind.

Cash dominates, timelines lengthen

Cash remained the primary method of financing, with 62.6% of flips bought without loans, essentially unchanged from a year earlier.

The highest cash-buying rates were in Tuscaloosa, Alabama (85.3%) and Youngstown, Ohio (82%).

Investors held properties for a median of 165 days before resale, up slightly from the first quarter but shorter than the same period in 2024.

Flips sold to buyers using Federal Housing Administration (FHA)-backed loans, often first-time homeowners, made up 11.2% of transactions, a small increase from both the prior quarter and the year before.

California metros such as Visalia (32.6%) and Modesto (31.8%) had the largest shares.

County-level hot spots

Flips represented at least 10% of all home sales in 169 of 1,001 counties studied. Stephens County, Texas, had the highest rate at 27.5%.

Cobb, Clayton and Douglas counties in Georgia also ranked near the top, with more than 20% of all sales involving flips.

Thirteen of the 20 counties with the highest flipping rates were in Georgia.