Profit Margins on Home Flips Sink to Lowest Level Since 2008

Flipping homes is becoming less profitable as high housing prices cut into returns. A new analysis from real estate data firm Attom shows that in the second quarter of 2025, the average profit margin on a flipped home fell to 25.1%—the lowest in 17 years. Rising acquisition costs, driven by historically high home prices and fierce competition for affordable properties, are squeezing investors even as home flipping remains widespread.