Home flipping in the U.S. fell 7.7% year over year in 2024, with 297,885 single-family homes and condominiums sold by fix-and-flip investors, according to a report from Attom. That represents a 32.4% decline from the nearly 441,000 homes that were flipped in 2022.

But the average gross profit on a home flip increased to $72,000, up 5.8% from $67,846 in 2023. That equates to a 29.6% return on investment (ROI) compared to the acquisition price. While that ROI is up slightly compared to the prior two years, it is well short of the recent 54.2% peak in 2016.

“The home-flipping industry saw investors shy away even more in 2024 amid the extended period of languishing profits. But even as activity waned, there was at least a glimmer of hope that returns were starting to turn around,” Attom CEO Rob Barber said in a press release. “While home flippers still seemed to be having difficulty timing the market for big profits, their margins at least stopped going in the wrong direction.”

Regionally, the Southern and Western U.S. saw the biggest declines in home flipping rates. Among major U.S. metro areas, Charlotte, N.C., had the largest year-over-year dip in home flipping at 18.5%, followed by Jacksonville, Fla., at 16.9%, New Orleans at 16.4% and Denver at 15%.

Homes flipped by investors who used financing for the purchase decreased in 2024 to 36.8% from 37.8% the previous year. All-cash purchases that were subsequently flipped rose slightly to 63.2% versus a 62.2% rate in 2023.

“This year poses significant uncertainty for investors, what with a short supply of homes for sale, declining numbers of low-priced foreclosure properties, mixed economic forecasts and elevated mortgage rates,” Barber stated. “So, they will have to do some very smart buying and quick renovating to keep the profit rebound going.”