Home flipping profits hit a 17-year low in 2025 due to high costs and strong investor demand.

Home flipping in the U.S. is less profitable than at any time since 2008, with median returns dropping to 25.1% in the second quarter of 2025, according to Attom. The median purchase price of flipped homes hit a record $259,700, while resale prices held steady at $325,000, driven by rising acquisition costs, a shortage of affordable homes, and strong investor competition. Despite lower profits, flipping remains significant, with about 78,621 homes flipped—7.4% of all sales. Investor activity rose overall, with investors buying 345,752 homes in the quarter, accounting for 33% of purchases, the highest share in at least five years, and owning roughly 20% of the nation’s single-family homes. Sluggish sales due to high mortgage rates have increased inventory and listing times, benefiting cash buyers.