According to ATTOM’s Q3 2025 U.S. Home Flipping Report, 72,217 single-family homes and condominiums were flipped during Q3, making up 6.8% of all home sales from July to September.
From 79,335 in the prior quarter and 75,977 in Q3 of last year, there were fewer flips nationwide both quarterly and annually. In Q2 of the year and Q3 of 2024, flips made up 7.3% and an estimated 7% of total sales, respectively.
The return on investment from flipping homes maintained a 10-year slide as the country saw record high housing prices. In Q3, the average profit margin for a flipped house was 23.1%, which was lower than the previous quarter’s 26.5% and the same period last year’s 29.8%.
“Home flipping activity and profitability continued to decline in Q3 2025 with typical return on investment dropping to 23.1%, the lowest since 2008,” said Rob Barber, CEO of ATTOM.
According to ATTOM’s home flipping data, normal flipping profit margins have not dropped below 25% since Q2 of 2008, when the country was experiencing a recession brought on by a mortgage crisis, until the most recent quarter.
Additionally, gross profits—the difference between a flipper’s buy and sale prices—were declining. An investor bought a typical flipped house in Q3 for a national median of $260,000 and sold it for a national median of $320,000, making $60,000 in gross profits. The average flip made $68,000 in profit the preceding quarter, compared to $73,554 at the same period last year.
“Rising home prices and shrinking margins have made flipping increasingly challenging,” Barber said. “What was once a flipping market that consistently delivered 40–60% returns for more than a decade beginning in 2009 has now settled into five straight quarters of returns in the 20% range. Investors must choose their markets more carefully as the game has fundamentally changed.”
Southern Metros Lead the Way in Home Flipping Rates
In 63.7 (116) of the 182 metropolitan statistical regions with enough data for analysis, the rate of flips as a percentage of total sales decreased quarter-over-quarter. Some 62.6% (114) of the 182 metro areas showed lower flip rates in Q3 of 2025 compared to 2024, indicating a roughly identical year-over-year drop.
The metro areas with the highest flipped home rates were:
- Columbus, GA (flips accounted for 13.5% of all sales)
- Tuscaloosa, AL (12.1% of all sales)
- Spartanburg, SC (12% of all sales)
- Canton, Ohio (11.2% of all sales)
- Atlanta, GA (11.1% of all sales)
After Atlanta, the metro areas with populations over 1 million that had the highest flipping rates were:
- Birmingham, AL (10.9% of all sales)
- Memphis, TN (10.3% of all sales)
- Dallas (10.3% of all sales)
- Phoenix (9.9% of all sales)
Of those largest metro areas, those with the smallest flipping rates were:
- Seattle, WA (3.9% of all sales)
- Honolulu (4.1% of all sales)
- Hartford, CT (4.3% of all sales)
- Rochester, NY (4.6% of all sales)
- Pittsburgh (4.6% of all sales)
The Lone Star State Experiencing Single-Digit Profit Margins from Flipping
In 61% (111) of the 182 metro regions with adequate data for analysis, home flipping profit margins decreased quarter-over-quarter.
The metro areas with the biggest quarterly drops in profit margins were:
- Hilo, HI (down from a 49.4% typical return on investment in Q2 of 2025 to a 1.2% return in Q3 of 2025)
- Appleton, WI (down from 51.6% to 14.9%)
- Hagerstown, MD (down from 74.1 % to 38.8%)
- Erie, PA (down from 57.9% to 26.9%)
- Augusta, GA (down from 79.2% to 50.2%)
Overall, of the 182 metro areas examined, only 22% (40) had flipping profit margins greater than 50% during Q3.
The areas with the largest typical profit margins from flipping were:
- Lynchburg, VA (130.5%)
- Scranton, PA (104%)
- Pittsburgh (103.6%)
- Buffalo, NY (94.1%)
- Shreveport, LA (86.5%)
Among those large metro areas, the smallest typical profit margins were in:
- Austin, Texas (4.1%)
- Dallas (4.6%)
- Houston (5.1%)
- San Antonio (6.5%)
- Salt Lake City, UT (11%)
- Raleigh, NC (11.1%)
The average loss on investment for properties that investors first bought for less than $50,000 nationwide was 14%.
Homes bought between $100,000 and $200,000 often yielded the highest return on investment. Once sold, those properties yielded an average profit margin of 31%, whereas homes sold for more than $5 million yielded an average profit margin of 28%.
All cash was used to purchase 62.9% of flipped properties nationwide, a little increase from 62.2% the previous quarter but a decrease from 63.4% at the same time last year.
The metro areas with the highest share of flipped homes purchased with all cash were:
- Flint, MI (85.3%)
- Erie, PA (84.3%)
- Youngstown, PA (84.1%)
- Cape Coral, FL (80.7%)
- Toledo, Ohio (80.4%)
In Q3, the average time to flip a house nationwide was 161 days, which was a tiny increase from 160 days at the same time last year but a decrease from 165 days the previous quarter.
First-time home purchasers frequently employ Federal Housing Administration-backed mortgages, which account for 10.6% of flipped homes sold nationwide. That was higher than 10.2% at the same time last year, but lower than 12.2% in Q2.
The metro areas with the highest proportion of flipped homes sold to FHA buyers were:
- Shreveport, LA (27.6%)
- Stockton, CA (27.5%)
- Modesto, CA (25.6%)
- Port St. Lucie, FL (25.5%)
- Brownsville, Texas (23.5%)
With flips accounting for 6.8% of all home sales and the average return on investment falling to 23.1%, the lowest since 2008, home flipping activity and profitability continued to deteriorate in Q3 2025. As flipping became more difficult due to declining margins and rising housing prices, investors made a median gross profit of $60,000. Markets differed greatly in terms of flipping rates and profitability; large Texas metro areas reported single-digit returns, whereas Southern metro areas had the most flip activity.
The post Q3 Home-Flipping Trends, Rates & ROI Profits first appeared on The MortgagePoint.
