T
he US home flipping market experienced a significant slowdown in early 2025, with both activity and investor profits declining sharply. According to ATTOM's Q1 2025 U.S. Home Flipping Report, 67,394 single-family homes and condominiums were flipped in the first quarter, representing 8.3% of all home sales between January and March.
Despite high home prices, investors are facing tighter margins. The typical gross profit on a flipped home dropped to $65,000 in Q1 2025, down from $70,000 in the prior quarter, resulting in a 25% return on investment (ROI) before expenses. This marks a downward trend from the post-pandemic peak ROI of nearly 49% in late 2020.
"The competitive home market means high prices, which is good for short-term investors on the selling end," said Rob Barber, CEO of ATTOM. "However, this dynamic is also making it harder to find underpriced homes to buy up and ultimately squeezing profit margins for the industry."
Regional trends show that while 76% of metro areas analyzed saw quarter-over-quarter gains in flipping activity, two-thirds reported annual declines. Macon, GA topped the list with flips making up 21% of home sales, followed by Warner Robins, GA, Atlanta, GA, and Memphis, TN.
Profitability declined in more than half of US metro markets, with 63% (109 out of 173 metros) showing year-over-year drops. Among large metros, St. Louis, MO saw margins fall from 49.3% to 27.3%, while Fresno, CA, Pittsburgh, PA, New York City, and Chicago, IL also posted double-digit declines.
The most profitable flips occurred in markets where homes were acquired for less than $225,000, with median ROIs of 46.4%. Cash remains king in the flipping sector, with nationwide cash purchases accounting for 62.2% of flipped homes in Q1. Average time to complete a flip increased modestly to 164 days.
At the county level, flips accounted for over 10% of sales in 27.1% of counties analyzed, with top counties including Cobb County, GA (25.9%) and Dawson County, GA (23.4%).
