H
ome flipping in the U.S. is slipping into a crisis‑era profit zone as buying costs climb and margins shrink. In Q2 2025, 78,600 single‑family homes and condos were flipped, making up 7.4 % of all U.S. home sales—down from 8.3 % in Q1 and slightly below the 7.5 % seen a year earlier. The average gross return on investment fell to 25.1 %, the lowest since Q2 2008, compared with the 62.9 % peak in 2012.
“Ideal flip targets—affordable homes needing work—are getting pricier,” says ATTOM CEO Rob Barber. “As buyers are priced out of the middle and high end, they compete with flippers for the same properties.”
Median purchase price hit $259,700, the highest recorded since 2000. Median resale price stayed at $325,000, leaving a typical gross profit of $65,300—4 % lower than Q1 and 14 % below a year ago.
**Regional trends**
Flip activity fell in 86 % of metro areas. Georgia stood out: Warner Robins (18.5 %), Macon (15.5 %), Atlanta (13.6 %) led the nation, with Columbus, GA (13 %) and Memphis, TN (12.5 %) close behind. Other metros with double‑digit rates included Birmingham, AL (11.8 %), Cleveland, OH (11.2 %) and Columbus, OH (10.5 %). Seattle, Boston and Honolulu were among the weakest, with rates of 4.1 %, 4.8 % and 5 % respectively.
**Margin pressure**
Most markets saw quarterly declines. Fort Smith, AR dropped from 76.3 % to 13.1 % ROI; Green Bay, WI fell from 70.1 % to 19.3 %; Clarksville, TN fell from 65.5 % to 26.2 %. Yet a few markets delivered exceptional returns: Pittsburgh (107 %), Shreveport, LA (104.2 %), Scranton, PA (104.1 %). New Orleans (78.1 %), Baltimore (75.5 %) and Memphis (70.6 %) also posted strong margins. In contrast, Austin (5.5 %), San Antonio (7.7 %) and Dallas (9.3 %) offered minimal profit.
**Financing and holding**
Cash purchases dominated, with 62.6 % of flips financed outright—a steady share over the past year. Average holding time rose slightly to 165 days from 163 days in Q1. FHA‑backed loans accounted for 11.2 % of sales, up from 10.9 % a year earlier, indicating more first‑time buyers entering the market.
**Georgia’s dominance**
Thirteen of the top 20 U.S. counties for flipping activity are in Georgia. Cobb County led with 23.1 %, followed by Clayton (21.4 %) and Douglas (20.5 %).
**Bottom line**
Flipping remains a high‑risk, low‑margin endeavor. Record‑high acquisition costs and flat resale prices are squeezing profits to levels last seen during the financial crisis. While Georgia continues to drive the market, the era of easy money in flips appears to be over.
