Home Flipping Profits Hit 17-Year Low
ATTOM’s latest report shows that 🔗U.S. home flipping activity is alive and well—but the profits sure aren’t. In Q2 2025, flippers saw an average gross return of just 25.1%—a far cry from the nearly 63% returns seen back in 2012, and the lowest margin in 17 years.
With the median investor purchase price at a record $259,700, the cost of entry is rising even as profits shrink. Competition is heating up, not just between flippers, but also with first-time buyers chasing the same starter homes. Meanwhile, Georgia has emerged as the nation’s flipping hot spot, even as much of the country sees margins slide.
📉 Falling Margins, Rising Costs
Q2 2025 flipping ROI: 25.1% (lowest since 2008).
Typical gross profit: $65,300, down 13.6% year-over-year.
Median purchase price: $259,700 (record high).
Median sales price: $325,000 (flat from Q1).
🔗Rob Barber, CEO of ATTOM, summed it up: “The initial buy-in for properties that are ideal for flipping keeps going up.” Translation: cheap fixers are harder to find.
🌎 Where Flipping Thrives (and Struggles)
Hot markets:
Warner Robins, GA (18.5% of sales)
Macon, GA (15.5%)
Atlanta, GA (13.6%)
Columbus, GA (13%)
Memphis, TN (12.5%)
Weak margins in big metros:
Austin, TX (5.5%)
San Antonio, TX (7.7%)
Dallas, TX (9.3%)
Raleigh, NC (10.3%)
Salt Lake City, UT (10.8%)
Meanwhile, Pittsburgh, PA, topped the charts with a whopping 106.8% ROI on flips.
🌵 Arizona’s Flipping Landscape
Closer to home, Arizona reflects the national slowdown in flipping returns.
Flipping rate: 8.8% of all Q2 2025 sales were flips, slightly above the national share of 7.4%.
Number of flips: 3,009 statewide.
Gross profit: $53,000 median profit per flip.
ROI: 15.4% return—well below the national average of 25.1%.
In other words, Arizona flippers are making less money on each deal than the average U.S. investor. Higher purchase prices across Phoenix and Tucson are keeping margins tight, while increased competition from FHA-backed buyers is pushing demand for starter homes higher. Investors can still find opportunities, but smart budgeting and sharp exit strategies are essential.
💰 Financing & Timelines
Cash is king: 62.6% of flips nationwide were bought all-cash.
Time-to-flip: 165 days on average (up slightly from Q1).
FHA buyers growing: 11.2% of flips were sold to FHA-backed borrowers, up from 10.9% last year.
🐼 Mama Bear’s Take
Home flipping isn’t dead—it’s just on a diet. With high buy-ins, slimmer profits, and longer timelines, today’s flippers are walking a tightrope. But for savvy investors who can find the sweet spot ($100k–$200k purchase range = best ROI at 37%), there’s still money to be made.
For Arizona, the numbers are even leaner. Margins are tighter, but flips are still a meaningful part of the market. Investors here need to be extra disciplined—knowing their buyer pool, managing renovation costs, and moving quickly once properties hit the market.
If you’re considering investing—or buying a flipped home yourself—let’s connect and talk strategy. The numbers may be tightening, but smart planning always opens doors.
📌 Stop waiting for perfect margins—reach out today to make a game plan.
