Two thirds of metro areas seeing smaller share of flips than same time last year; Highest flipping profit margins found in Midwest and Northeast
IRVINE, Calif., June 18, 2025 /PRNewswire/ -- ATTOM, a leading curator of land, property data, and real estate analytics, today released its first quarter 2025 U.S. Home Flipping Report showing that 67,394 single family homes and condominiums were flipped in the first quarter of 2025, accounting for 8.3 percent of all home sales from January through March.
The share of flipped properties, as a percentage of all sales, rose to 8.3 percent from 7.4 percent the previous quarter. But it was down slightly compared to the same time last year, when flips accounted for 8.7 percent of all sales.
The buying slowdown also appears to be affecting home flippers. The 67,394 homes and condos flipped nationwide during the first three months of the year marked the lowest number in a quarter since 2018. Returns have also been falling, with the typical flipped home netting a 25 percent return on investment (before expenses) in the first quarter of 2025. That was down from 28 percent in the previous quarter and continued a gradual decline from the recent high of 48.8 in the fall of 2020.
Gross profits on a typical flipped home, the difference between the median purchase and median resale price for home flips, were down to $65,000 from $70,000 in the fourth quarter of 2024. The typical investor paid $260,000 for a home they flipped in the first quarter of 2025 and sold the property for $325,000.
"The competitive home market means high prices, which is good for short-term investors on the selling end," said Rob Barber, CEO at ATTOM. "But that dynamic is also making it harder to find under-priced homes to buy up and it's ultimately squeezing profit margins for the industry."
"It's tricky to balance at times when the market looks like it could take a downturn," he added. "Investors don't want to buy a property when prices are high and then see them drop before they're ready to sell."
Home flipping shrinks annually in two thirds of major markets
Home flips, as a share of total sales, rose quarter-over-quarter in 76.3 percent (132) of the 173 metropolitan statistical areas with sufficient data to analyze. However, the share was down compared to the same time last year in two thirds (115) of the metro areas. Metro areas were included if they had a population of 200,000 or more and at least 50 home flips in the first quarter of 2025.
Among the metro areas analyzed, home flippers accounted for the biggest share of sales in Macon, GA (flips compromised 21 percent of all home sales); Warner-Robins, GA (20.6 percent); Atlanta, GA (15.9 percent); Memphis, TN (14.7 percent); and Akron, OH (13.3 percent).
Q1 2025 U.S. Home Flipping Historical Trends
Besides Atlanta and Memphis, the metro areas with populations over 1 million that had the highest proportion of flips were Birmingham, AL (12.8 percent); Kansas City, MO (11.6 percent); and Salt Lake City, UT (11.1 percent).
Of those biggest metro areas, the smallest proportion of flips was in Honolulu, HI (4.7 percent); New Orleans, LA (4.9 percent); Seattle, WA (5.5 percent); Pittsburgh, PA (5.9 percent); and Portland, OR (6.1 percent).
Home flipping returns down annually in more than half the metro areas
A home flipped in the first quarter of 2025 sold for a nationwide median of $325,000, netting a 25 percent return on investment and a $65,000 gross profit over the $250,000 median purchase price.
Profit margins were down quarter-over-quarter in 45.7 percent (79) of the 173 metro areas in ATTOM's analysis and down annually in 63 percent (109) of the markets.
The metro areas with the biggest quarterly declines in flipping profit margins were Spartanburg, SC (return on investment down from 160.2 percent in fourth quarter 2024 to 31.3 percent in first quarter 2025); Ocala, FL (down from 125 percent to 50.6 percent); Chattanooga, TN (down from 125.6 percent to 81.3 percent); Lynchburg, VA (down from 69.2 percent to 31 percent); and Johnson City, TN (down from 82.1 percent to 44.5 percent).
Among metro areas with populations over 1 million, the biggest quarterly profit margin drop offs were in St. Louis, MO (ROI down from 49.3 percent in fourth quarter 2024 to 27.3 percent in first quarter 2025); Fresno, CA (down from 51.3 percent to 37.8 percent); Pittsburgh, PA (down from 108.7 percent to 100.4 percent); New York City, NY (down from 44.2 percent to 36.1 percent); and Chicago, IL (down from 52.6 percent to 44.8 percent).
Only 26 percent (45) of the 173 metro areas analyzed posted typical flipping profit margins (before expenses) over 50 percent, with the most lucrative markets located in the Midwest and Northeast.
The areas with the largest return on investment in the first quarter of 2025 were Buffalo, NY (102.1 percent ROI), Pittsburgh, PA (100.4 percent); Scranton, PA (89.9 percent); Peoria, IL (89.1 percent); and Rockford, IL (87.7 percent).
Aside from Buffalo and Pittsburgh, the metro areas with populations over 1 million that had the largest flipping profit margins were New Orleans, LA (76.5 percent ROI); Memphis, TN (69.7 percent); and Philadelphia, PA (69.6 percent).
The large metro areas with the smallest profit margins were Austin, TX (1 percent ROI); Dallas, TX (3.7 percent); Houston, TX (5 percent); Salt Lake City, UT (6.5 percent); San Antonio, TX (6.9 percent).
Q1 2025 Home Flipping Profit Trends Historical Chart
Less expensive homes most profitable for flipping
Metro areas where the typical flipped home cost investors less than $225,000 to purchase tended to give the best returns on investment. The median profit margin in those lower-end metro markets was 46.4 percent.
In metro markets where the median purchase price before a flip was between $225,000 and $400,000, the median ROI was 22 percent, while in areas where homes initially cost flippers more than $400,000, the median ROI was 19 percent.
About two-thirds of flipped homes bought with cash
Nationwide, 62.2 percent of all homes flipped during the first quarter of 2025 were purchased with all cash, down slightly from 63.4 percent the previous quarter but pretty much the same as the same time last year. Flippers purchased the other 37.8 percent of homes with the help of financing.
The metro areas where flippers purchased the highest share of homes entirely with cash were Rockford, IL (81.6 percent of flipped homes); Toledo, OH (81.2 percent); Buffalo, NY (81.2 percent); Cape Coral, FL (81.1 percent); and Naples, FL (81.1 percent).
Average time to flip nationwide increases
The average time it took from purchase to resale on home flips increased slightly from 157 days in the fourth quarter of 2024 to 164 days in the first quarter of 2025. However, the latest figure was down from 178 days in the second quarter of 2023.
Q1 2025 U.S. Avg Days to Flip Historical Chart
Slight quarterly increase in flipped homes sold to FHA borrowers
Across the country, 10.9 percent of flipped homes were sold to buyers who had Federal Housing Administration-backed mortgages, which are often used by first-time buyers. That was up from 10.5 percent last quarter but down from 11.1 percent at the same time last year.
Among metro areas with a population of 200,000 or more and at least 50 home flips in the first quarter of 2025, those with the highest proportion of flipped properties sold to buyers with FHA-backed loans were in Visalia, CA (34.1 percent); Bakersfield, CA (27.4 percent); Vallejo, CA (26.8 percent); Fresno, CA (26.5 percent); and Lakeland, FL (25.4 percent).
One of every 4 counties has home flipping rates of at least 10 percent
Home flips made up more than 10 percent of all home sales in 27.1 percent (240) of the 885 counties in ATTOM's Analysis that had at least 10 flips in the first quarter of 2025. The counties with the largest share of home flips as a percentage of sales were Cobb County, GA (25.9 percent flipping rate); Dawson County, GA (23.4 percent); Houston County, GA (23 percent); Bibb County, GA (22.8 percent); and Lincoln County, TN (20.4 percent).
Report methodology
ATTOM analyzed sales deed data for this report. A single-family home or condo flip was any arms-length transaction that occurred in the quarter where a previous arms-length transaction on the same property had occurred within the last 12 months. The average gross flipping profit is the difference between the purchase price and the flipped price (not including rehab costs and other expenses incurred, which flipping veterans estimate typically run between 20 percent and 33 percent of the property's after-repair value). Gross flipping return on investment was calculated by dividing the gross flipping profit by the original purchase price.
About ATTOM
ATTOM powers innovation across industries with premium property data and analytics covering 158 million U.S. properties—99% of the population. Our multi-sourced real estate data includes property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, neighborhood and geospatial boundary information, all validated through a rigorous 20-step process and linked by a unique ATTOM ID.
From flexible delivery solutions—such as Property Data APIs, Bulk File Licenses, ATTOM Cloud, Real Estate Market Trends—to AI-Ready datasets, ATTOM fuels smarter decision-making across industries including real estate, mortgage, insurance, government, and more.
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