The fix-and-flip housing market has entered 2026 with renewed optimism, according to the latest Burns + Kiavi Fix and Flip Market Index released by John Burns Research and Consulting and Kiavi.
The Index rose to 62 in fourth-quarter 2025, up from 56 in the third quarter — the largest quarterly gain in three years and the highest reading since third-quarter 2024. The improvement reverses six consecutive quarters of decline and signals growing confidence among real estate investors.
A striking 71% of flippers expect to purchase more homes for flipping in 2026 compared to last year, the highest share in the survey's four-year history. Just 10% anticipate buying fewer properties, suggesting widespread optimism about market conditions despite ongoing affordability challenges.
Flippers attribute the strengthening market to lower mortgage rates, easier access to capital, and early signs of price stabilization as inventory growth slows nationally.
The Index comprises three subindices measuring current sales activity, expected sales over the next six months, and competition for acquisition deals — all of which showed improvement in the fourth quarter.
However, execution remains competitive, as more than 40% of flippers increased seller concessions or reduced prices to achieve sales, with 44% boosting concessions, and 41% implementing outright price cuts. Professional staging was increased by 33% of flippers, while 17% raised agent incentives.
The typical flipped home sold for between $300,000 and $500,000, with 73% of transactions falling below the $500,000 threshold. Average renovation costs reached $75,000 in the fourth quarter, accounting for roughly 17% of the final sale price.
Capital access showed modest improvement, with 30% of flippers reporting easier access to financing compared to the previous quarter, up from 24% a year earlier. The average effective interest rate on flipper loans stood at 9.6% in the fourth quarter.
Entry-level buyers accounted for 50% of flipped home purchases in the fourth quarter, the highest level since third-quarter 2024, suggesting flippers continue to focus on the more affordable end of the market where demand remains relatively strong.
Despite the optimistic sentiment, actual transaction volumes remained subdued, with flipped home sales falling 9% year-over-year across 103 metropolitan areas tracked by the researchers.
