Home flippers see smallest profits since Great Recession, data firm says

Key Points:

• Home flipping activity in the U.S. declined in 2025, with approximately 297,000 single-family homes and condos flipped, marking a 3.9% decrease from 2024 and the lowest level since 2020, according to ATTOM.
• Investor flips made up 7.4% of all home sales in 2025, down from 7.6% the previous year, as profit margins shrank to a 25.5% return on investment—the lowest since 2008—due to high home prices and elevated renovation costs.
• Despite challenges, there are early signs of market improvement, with investor sentiment rising and 71% of surveyed flippers expecting to buy more homes in 2026, supported by moderating home prices and mortgage rates below last year's levels.
• Legislative changes from the "big beautiful bill," such as enhanced depreciation and tax deductions on fix-and-flip loans, may boost profitability for investors in the fix-and-flip sector.
• Mortgage rates remain a key uncertainty, with rising oil prices linked to geopolitical tensions impacting forecasts, prompting flippers to adopt more creative strategies including focusing on older homes and tighter cost controls.