Home Flipping Profit Margins Hit 17-Year Low In Q2 2025

ATTOM’s Q2 2025 U.S. Home Flipping Report shows that profit margins for house flippers have dropped to their lowest point since 2007, continuing a downward trend that has been pressuring investors for several years. The typical gross profit on a flipped single-family home or condo was $65,000, down from $67,900 in the first quarter. That equated to a 27.5% return on investment, compared with returns above 50% at the peaks of 2016 and 2021.

The share of home sales represented by flips also fell, making up just 7.2% of all U.S. home sales in Q2. That was the smallest portion in nearly three years, reflecting both softer demand and slimmer investor incentives. While raw profits remain higher than they were before the pandemic, margins have tightened as acquisition prices and renovation costs continue to rise faster than resale values.

Regional differences were pronounced. The South and Midwest generally delivered stronger profits, while investors in the West—where purchase prices and expenses are highest—saw the weakest returns.

ATTOM CEO Rob Barber noted, “The latest numbers show that home flipping is still a money-maker, but the windfall gains investors were reaping a few years ago are just not there anymore.”