The U.S. home-flipping business continued to lose some of its financial appeal in the second quarter as investors completed more deals than in the first three months of the year but generated smaller profits on each transaction.
Investors flipped 77,991 single-family homes and condominiums in the second quarter, representing 6.2% of all U.S. home sales, according to a newly released report from property-data provider ATTOM. The volume increased from 64,760 flips in the first quarter but fell from 80,477 a year earlier.
The decline was more pronounced when measured against the broader housing market. The share of sales involving flipped properties dropped from 8% in the first quarter and 7.3% in the second quarter of 2025.
Profitability also continued to deteriorate. The typical gross profit on a flipped property fell to $60,526, down from $66,932 in the previous quarter and $71,000 a year earlier. The typical return, measured as profit relative to the purchase price, declined to 21.5%, from 25.7% in the first quarter and 27.6% a year earlier.
The results extend a broader deterioration in flipping economics that ATTOM has documented over the past two years, as investors contend with narrower spreads between acquisition and resale prices.
“Flippers are still making money in most markets, but the typical return continues to narrow,” said Rob Barber, CEO of ATTOM. “The second-quarter numbers continue the general downward trend in profit margins and gross profits we have seen over the past two years.”
The pressure was widespread. The flipping rate declined from the prior quarter in 162 of the 186 metropolitan areas analyzed, or 87.1%. Compared with a year earlier, the rate fell in 131 markets.
Activity remained particularly concentrated in several smaller and mid-sized markets. Columbus, Georgia, posted the highest flipping rate at 13.6% of sales, followed by Canton, Ohio, at 11.6%, Akron, Ohio, at 11.2%, Fayetteville, North Carolina, at 10.9%, and Macon, Georgia, at 10.6%.
Among metropolitan areas with populations above 1 million, Cleveland led at 10.4%, followed by Columbus, Ohio, and Memphis at 9.5% each, Dallas at 9.4% and Phoenix at 8.9%.
Returns varied sharply by location. Pittsburgh recorded an 81.5% typical return, followed by Buffalo at 76.6% and New Orleans at 75%. At the opposite end, San Antonio posted a slight loss of 0.3%, while Dallas, Austin and Houston produced returns of 1.8%, 2.8% and 3.7%, respectively.
Purchase price remained a major determinant of performance. Properties acquired for $100,000 to $200,000 generated a typical 28% return, while homes purchased for $200,000 to $300,000 produced 26%. Returns fell to 20% for properties bought between $300,000 and $400,000.
At the lowest end of the market, homes purchased for $50,000 or less produced a typical $15,000 loss, equivalent to a negative 38% return.
One positive development for investors was speed. The typical flip took 161 days from purchase to resale, four days less than in the first quarter and five days less than a year earlier.
Meanwhile, the share of flipped properties sold to buyers using Federal Housing Administration-backed mortgages rose slightly to 10.7%, from 10.1% in the first quarter, although it remained below the 12.3% recorded a year earlier.
The second-quarter data show a home-flipping market that remains profitable in many parts of the country but is becoming increasingly dependent on disciplined acquisition prices, local market conditions and efficient execution. With the typical spread between purchase and resale prices continuing to narrow, investors have less room to absorb renovation costs, financing expenses and delays.
For professional flippers, the changing economics could increasingly favor markets where acquisition prices remain relatively low and resale demand is strong, rather than simply chasing the highest nominal home prices or the largest transaction volumes.
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