IRVINE, CA — The 2024 U.S. Home Flipping Report from ATTOM revealed that home-flipping activity in the United States continued to decline for the second consecutive year, with 297,885 single-family homes and condos flipped in 2024. This marks a 7.7 percent drop from 2023 and a steep 32.4 percent decrease from the recent peak in 2022.
Flips accounted for 7.6 percent of all home sales in 2024, down from 8.1 percent the previous year. Yet, in a small boost for investors, typical gross profits on home flips rose from $67,846 in 2023 to $72,000 in 2024, representing a 29.6 percent return on investment (ROI). While this is an improvement from 28.6 percent the prior year, it remains significantly below the decade-high ROI of 54.2 percent achieved in 2016.
“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,” said Rob Barber, CEO at ATTOM. Still, Barber cautioned against challenges ahead, citing tight housing supply, mixed economic signals, and elevated mortgage rates.
Regional Trends Highlight Sharp Contrasts
The report identified significant geographic disparities. Home-flipping rates fell in 68 percent of metropolitan areas, with notable declines in southern and western cities like Charlotte, NC (down 18.5 percent), and Jacksonville, FL (down 16.9 percent). Meanwhile, smaller markets such as Cedar Rapids, IA, and Bellingham, WA, saw flipping activity surge by 49.6 percent and 28.2 percent, respectively.
Cash transactions continued to dominate, with 63.2 percent of flipped homes bought outright, up slightly from 62.2 percent in 2023. Metro areas like Buffalo, NY (81 percent) and Cleveland, OH (77.4 percent) led in cash purchases.
Time to Flip and Margins Vary Nationwide
Profitable metro areas, such as San Jose, CA, and San Francisco, CA, posted gross profits of $283,000 and $218,000, respectively. By contrast, markets like Austin, TX, and San Antonio, TX, yielded notably slimmer profits, reflecting regional housing dynamics. The average time to flip decreased to 162 days in 2024, a slight improvement from the prior year’s 169 days.
Outlook for 2025
Despite a modest rebound in profitability, the home-flipping industry faces ongoing headwinds, including fewer low-cost properties and fluctuating market conditions. To maintain momentum, investors will need strategic acquisitions and efficient renovation timelines. While profitability remains a challenge, investors may find reason for cautious optimism in the evolving dynamics of the broader housing market.
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