Profit margin on flipping a home is at a 17-year low due to high prices
Home flipping returns fell to 25.1% in Q2 2025 as rising home prices and competition reduce profits to the lowest level since 2008, data from ATTOM shows.
- This year, ATTOM found home flipping profits fell to their lowest level since 2008, while Chester County, Pennsylvania home flippers face squeezed margins despite strong demand and a median sale price near $620,000 b.
- Pressure on margins stems from higher purchase prices, longer turnaround times, competition from traditional buyers, and housing supply factors raising investors' acquisition costs.
- Data show that $65,300 in gross profits and a 25.1% ROI were recorded, with a record $259,700 median purchase price and $325,000 median resale in Q2.
- Investor activity increased as investors bought 33% of homes sold and inventory rose to more than 1,000 homes in February, giving cash-ready buyers more options.
- Over the longer term, data show flipping profitability has declined for more than a decade as the U.S. housing market has been in a sales slump since early 2022, with sales sinking last year and mortgage rates remaining elevated this year until recently.
19 Articles
19 Articles
Home flipping profits hit lowest level since 2008
KEY TAKEAWAYS: Typical home flip returned 25.1% before expenses, lowest since 2008 Gross profits declined 13.6% year-over-year to $65,300 Median purchase price of flipped homes hit $259,700, a record high Investors bought 33% of homes sold in Q2, highest in five years It pays less and less to buy and flip a home these days. From April through June, the typical home flipped by an investor resulted in a 25.1% return on investment, before exp…

Profit margin on flipping a home is at a 17-year low due to high prices
It pays less and less to buy and flip a home these days. The typical home flipping profit margin fell in the second quarter to its lowest level since 2008, with a typical return of 25.1% before expenses.
The profit from buying and reselling a house in the United States is decreasing.
Chester County Flipping Faces Squeeze as U.S. Profits Hit 17-Year Low
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…
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