BiggerPockets Daily How Much Are Flippers Making in Today's Tight Market?
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Aug 13, 2025 Home flipping is facing significant challenges, with activity at its lowest since 2018 and profit margins shrinking. The median return on investment has dropped to just 25%. The discussion highlights cash purchases rising and flippers extending their timelines due to market uncertainties. Strategies like the 1031 exchange and co-hosting services are considered to optimize revenues. Insight into navigating the complexities of lower-cost home renovations and the importance of thorough research is also examined.
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Flipping Volume Hits Multi-Year Low
- Home flipping fell to the lowest quarterly volume since 2018 with 67,394 flips in Q1 2025.
- Flipping now represents 8.3% of sales, a slight increase from last quarter but down year-over-year.
Profits And ROI Are Shrinking
- Median gross profit on flips dropped to $65,000, pushing median ROI to 25% from higher recent levels.
- After renovation, carrying costs, and fees many flippers likely face single-digit or negative net returns.
Sun Belt Activity With Compressed Margins
- Sun Belt metros still show activity but ROIs in large Texas metros are now in the low single digits to mid-single digits.
- High acquisition costs and tighter buyer pools are compressing margins even in formerly hot markets.