BiggerPockets Daily Flipping Gets Harder—Q1 Report Shows Falling Margins and Longer Timelines
Jun 23, 2025
Home flipping activity has hit a multi-year low, with just over 67,000 homes flipped in Q1 2025—the least since 2018. Flippers face shrinking profits, as median returns drop to 25%. The podcast discusses why flippers are struggling amidst high acquisition costs and longer timelines. It also explores potential hotspots for better returns, like Texas and the Northeast, while offering practical strategies to navigate market uncertainties and optimize exit plans.
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Flipping Hits Multi-Year Low
- Home flipping reached its lowest volume since 2018 with 67,394 flips in Q1 2025, marking 8.3% of sales.
- Median ROI dropped to 25%, showing shrinking profits and tougher market conditions for flippers.
Lower Prices Boost Returns
- Lower home prices correlate with better flipping returns, with top ROIs of over 90% in some Northeast and Midwest markets.
- Higher acquisition prices correspond to significantly lower ROI numbers, under 20% in high-end markets.
Holding Times Are Increasing
- The average holding time for flipped homes is increasing, now averaging 164 days.
- Longer holding times eat into profit margins and reduce the speed advantage of flips.