Despite record-high home prices across the nation, real estate investors are seeing their returns shrink rapidly, with home flipping profit margins in 2025 hitting their lowest point since the Great Recession.
A total of 297,045 single-family homes and condominiums were flipped last year, according to a new report from Attom. This figure accounts for 7.4% of all home sales and marks the fewest flips recorded in a single year since 2020.
More concerning for investors, the typical flip generated a gross profit of $65,981, representing a 25.5% return on investment. This is a sharp drop from the average 32.1% ROI recorded in 2024 and stands as the lowest profit margin recorded since 2008.
For comparison, Attom data shows that in the decade after 2008, the typical flipped home was acquired for less than $150,000 and profit margins consistently exceeded 50%, hitting 61.1% in 2012.
The squeeze on investor profits is primarily constrained by housing supply and soaring upfront acquisition costs. According to Attom CEO Rob Barber, “With prices staying elevated, investors are finding it harder to secure deals that deliver strong returns.”
Barber noted in a statement accompanying the report that flippers are having to get more creative to maintain profitability.
“That could include taking on older homes,” he said, “along with tighter cost control and more disciplined renovation strategies.”
Market data supports this strategic shift toward older properties. The median flipped home in 2025 was built in 1978, making it the oldest median age ever tracked by the property data provider, Barber said.
Additionally, a growing number of investors are relying on borrowed capital rather than paying in all cash. The share of flipped homes acquired with the help of financing rose to 37.7% in 2025, up from 36.9% the previous year.
Markets like San Diego and Lincoln, Neb., led the nation in financed flips, with over 60% of investors securing loans in those metros.
The decline in overall flipping activity was widespread, with the flipping rate falling year over year in 142 of the 215 metropolitan statistical areas Attom analyzed. Hardest hit were Salisbury, Md., and Tallahassee, Fla., with flipping rates declining by 42.2% and 37.5%, respectively.
Despite this challenging landscape, the timeline for flipping a home remained relatively stable. The average flipped home took 163 days to sell from the time of purchase, just one day longer than the 2024 average, and a full two weeks quicker than 2020 timelines.
