House flipping has become increasingly popular over the past few years, although interest may be starting to wane.
Out of all home sales in the third quarter of 2025, 6.8% were flips. That’s down from 7.3% in the second quarter of 2025, and about level with the third quarter of 2024, when 7% of sales were flips,, according to data from ATTOM Data.
There’s still plenty of money to be made in home flipping, although profit dropped in the third quarter of 2025 to $60,000 and and return on investment (ROI) fell to 23.1%, which is the lowest ROI since 2007. House flipping profit and ROI has dropped for six straight quarters, according to ATTOM Data.
Are you thinking about getting into the fix-and-flip game? Want guidance on where to do your next flip? Read on for more essential flipping stats to have on your radar.
Nationwide house-flipping stats: Return on investment, flipping rates, and more
House flips as a percentage of all home sales
In the third quarter of 2025, 72,217 single-family homes and condos were flipped, 6.8% of all home sales in that quarter, according to ATTOM Data.
The overall number of homes flipped declined by roughly 7 thousand from the previous quarter.
The number and percentage of home purchases that ended up being flipped peaked in 2022, when 8.6% of all home sales that year, nearly 441,000, were flips.
House-flipping gross profit and return on investment
The average ROI for house flipping in the third quarter of 2025 was 23.1%, and the average gross profit that quarter was $60,00, according to ATTOM Data. The average ROI for house flipping is at its lowest since 2007. ROI fell 3.4 percentage points from the previous quarter, and gross profit was $8,000 less. Year-over-year, profit was down $13,554 and gross ROI fell by 6.8 percentage points.
Although popular, house flipping has become less profitable over the past several years. In 2016, it achieved an average ROI of 54% and a gross profit of $65,000. In 2024, the average ROI was down to 30% but profit was $72,000.
Elevated median home prices, as well as more expensive materials and labor, are at least partially responsible for declining returns on investment.
About 39% of flipped homes sold were bought entirely with cash in the third quarter of 2025, up by 2 percentage points from the previous quarter.
Investors are still mostly opting to buy, fix, and flip homes with cash, even as the housing market has become less competitive than it was during the pandemic. Sellers typically prefer cash offers, particularly banks and lenders with distressed properties to sell.
Home-flipping returns by state
Homes flipped in Pennsylvania generated the largest ROI in the third quarter of 2025, providing a 67% average return, according to ATTOM Data. While significant, that’s down from a year ago, when houses flipped in the state had an average return of 88%.
Two other states had an average house flipping ROI of over 60%: Louisiana and West Virginia. In 2021, eight states had average returns on house flipping of more than 60%.
In terms of gross profit, flips in New Jersey generated the most cash on average, at $158,850. That’s up about $50,000 from a year ago.
Fix-and-flippers in Montana had it the worst in the third quarter of 2025; house flipping there netted investors a -2.3% average ROI which came to a $9,010 loss. Montana was the only state to have a negative average house flipping ROI that quarter.
The ROI for house flipping in the third quarter of 2025 grew in 11 states year-over year. These are the states that saw the largest increase in ROI:
- Hawaii: 22.1% gross flipping ROI in the third quarter of 2025 compared to 10.9% ROI in the third quarter of 2024.
- West Virginia: 61.7% from 50.7%
- Iowa: 44.9% from 36.7%
- Washington, D.C.: 27.9% from 21.4%
- Kansas: 19.5% from 13.8%
The states that saw the largest drop in ROI from the second quarter of 2024 to the second quarter of 2025:
- Delaware: 36% gross flipping ROI in the third quarter of 2025 compared to 77.7% in the second quarter of 2024.
- Maryland: 58.1% ROI from 88.8%
- Massachusetts: 18.8% ROI from 43.2%
- Pennsylvania: 66.7% ROI from 88.4%
- Nebraska: 32% ROI from 51.5%
The best and worst markets for house flipping
Lynchburg, Virginia, boasts the best returns for house flippers, netting them an average of 130.5% back on their investments in the third quarter of 2025.
The best market by gross profit is the New York-Newark-Jersey City metro area, where flippers made an average of $186,440.
The worst market for house flipping is College Station-Bryan, Texas. The average ROI was -10.8% and the average gross loss was -34,030. Three other metro areas had negative house flipping returns: Asheville, North Carolina; Brownsville-Harlingen, Texas; and Bend-Redmond, Oregon.
These are the best and worst markets for house flipping by gross return on investment in the third quarter of 2025.
Best markets for house flipping by ROI
Market | Q3 2025 Flipping Gross Profit | Q3 2025 Gross ROI |
|---|---|---|
Lynchburg, VA | $158,500 | 130.5% |
Scranton--Wilkes-Barre--Hazleton, PA | $104,500 | 104.0% |
Pittsburgh, PA | $108,750 | 103.6% |
Buffalo-Cheektowaga-Niagara Falls, NY | $122,300 | 94.1% |
Shreveport-Bossier City, LA | $86,500 | 86.5% |
Baton Rouge, LA | $92,125 | 75.0% |
Memphis, TN-MS-AR | $75,000 | 75.0% |
Kalamazoo-Portage, MI | $93,653 | 74.1% |
Peoria, IL | $56,250 | 73.8% |
Lansing-East Lansing, MI | $79,000 | 72.8% |
Worst markets for house flipping by ROI
Market | Q3 2025 Flipping Gross Profit | Q3 2025Gross ROI |
|---|---|---|
College Station-Bryan, TX | ($34,030) | (-10.8%) |
Asheville, NC | ($22,594) | (-5.7%_ |
Brownsville-Harlingen, TX | ($2,563) | (-1.3%) |
Bend-Redmond, OR | ($1,276) | (-0.2%) |
Hilo, HI | $5,529 | 1.2% |
Myrtle Beach-Conway-North Myrtle Beach, SC-NC | $4,443 | 1.5% |
Naples-Immokalee-Marco Island, FL | $10,000 | 1.9% |
El Paso, TX | $5,524 | 2.4% |
Daphne-Fairhope-Foley, AL | $9,610 | 2.9% |
Killeen-Temple, TX | $7,865 | 3.8% |
The bottom line for investing in house flipping
House flipping is not generating the same return on investment as in years past, but gross profit has shown promising signs. House prices were growing faster than the value of flipped homes for a number of years, which has cut into returns.
Inflation, stubbornly high mortgage rates, and other economic headwinds challenged homebuyers in recent years, as well as home flippers who were looking to resell. Still, house flipping remains popular, and there are lucrative markets to tap into.
Statistics aren't everything, but they can provide a good idea of what sort of competition house flippers face and in which markets to focus investments. They also offer a baseline to set expectations for profits and ROI.
The bottom line is that the capital costs of house flipping remain high, while returns have shrunk.
Thankfully, there’s more than one way to invest in real estate, including residential real estate. Real estate investment trusts, or REITs, are among the most accessible ways for anyone to gain exposure to real estate without having to oversee a construction project and put a sizable amount of cash on the line.
Sources
- ATTOM Data (2025). “Home Flipping ROI Drops Below 25 Percent for the First Time Since 2008.”
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