Home Flipping Profit Margins Hit 17-Year Low In Q2 2025 – NMP Skip to main content

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

Sep 19, 2025
home flips

The typical home flipper saw only a 27.5% return on investment

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.”

About the author
Published
Sep 19, 2025
New-Home Mortgage Demand Slips Despite Widespread Builder Incentives

Applications fell 5.7% annually in July, while government-backed mortgages accounted for half of builder-affiliated loan volume

Aug 21, 2026
Fannie Mae Returns To Distressed-Loan Market With $214 Million Sale

The agency’s first nonperforming-loan offering in 13 months transfers 969 deeply delinquent mortgages to private buyers, including a small pool concentrated in Dallas-Fort Worth

Aug 20, 2026
Summer Rate Spike Knocks Pending Home Sales To Six-Month Low

Contract signings fell in every region during July, leaving purchase activity 30% below its 2019 level despite a larger workforce

Aug 19, 2026
Cash Sales Retreat, Giving Financed Buyers More Room To Compete

Cash transactions fell faster than the broader housing market in early 2026, but buyers without financing still accounted for nearly one-third of home sales

Aug 19, 2026
Mortgage Delinquencies Ease, But FHA Distress Keeps Deepening

Overall delinquencies dipped in the second quarter, but FHA serious delinquencies jumped 227 basis points from a year earlier as more troubled loans moved toward foreclosure

Aug 18, 2026
Credit-Score Choice Is Becoming Part Of The Mortgage Sales Pitch

One-third of consumers say they would consider switching lenders over older scoring models, making underwriting technology a potential borrower-retention issue

Aug 18, 2026