Flipping houses is changing into a much less worthwhile enterprise enterprise for traders, an Attom Data Solutions report finds.
The return on funding for fix-and-flip properties dipped to 25% in the primary quarter of 2025, down from 28% the earlier quarter. In the autumn of 2020, the ROI on flipping houses was 48.8%, per the information vendor.
The decline is attributed to a mix of elevated residence costs, financial uncertainty and sluggish homebuying demand.
Attom’s report additionally exhibits that the typical time it took for traders to purchase and resell a property rose to 164 days in the primary quarter, up from 157 days the earlier quarter.
According to Rob Barber, CEO of Attom, the excessive price of houses makes “it more durable to search out underpriced houses to purchase up and it is in the end squeezing revenue margins for the trade.”
“It’s difficult to steadiness at occasions when the market seems prefer it might take a downturn,” Barber added in an announcement. “Investors do not wish to purchase a property when costs are excessive after which see them drop earlier than they’re able to promote.”
As flipping returns decline, so have gross profits. Investors earned a mean gross revenue of $65,000 per property in the primary quarter, down from $75,000 the earlier quarter. On common, traders paid $260,000 for a house and resold it for $325,000.
A complete of 67,394 single-family houses and condos had been flipped in the primary quarter, representing 8.3% of all residence gross sales. That’s a slight enhance from 7.4% in the earlier quarter, however a lower from 8.7% year-over-year.
Investors noticed the perfect returns in components of the Northeast and Midwest. These markets embrace Buffalo, New York; Pittsburgh and Scranton, Pennsylvania; together with Peoria and Rockford, Illinois.
Meanwhile, some markets that had been as soon as extremely wanted noticed the smallest revenue margins. These included Austin, Dallas, Houston, San Antonio and Salt Lake City.
Attom knowledge additionally exhibits that money stays dominant in the flipping market. Nationwide, 62.2% of houses flipped in the primary quarter had been bought with all money.
Metro areas with the very best share of money purchases included Rockford (81.6%); Toledo, Ohio (81.2%); Buffalo (81.2%); Cape Coral, Florida (81.1%); and Naples, Florida (81.1%).
The share of flipped houses financed with Federal Housing Administration-backed loans was 10.9%, up from 10.5% in the earlier quarter, per the report.
