Property Flipping Statistics and Market Data

This article was written by our expert who is surveying the industry and constantly updating the business plan for a house flipper.

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The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the house flipping market.

What is the current average gross profit margin per flip across regions?

Gross margins on house flips average about 25.1% in the U.S. in 2025, with wide regional dispersion.

Midwest and Northeast metros tend to show healthier spreads, while high-cost coastal cities post thinner margins due to expensive acquisitions and slower absorption. England & Wales are closer to ~10% average gross profit in early 2025, reflecting transaction taxes and tighter spreads. Median resale price increases in the U.S. typically sit near 25–30% versus purchase price when the acquisition discount and scope are well aligned.

Even with lower spreads than prior years, flips still represent a notable share of transactions (roughly 7.4–8.3% of sales in several large U.S. metros). ROI has downshifted from ~49% peaks in 2016 to ~25–30% today, so underwriting discipline is essential.

It’s a key part of what we outline in the house flipping business plan.

Always model margin after all costs (financing, holding, closing) to avoid overstating profitability.

What is the typical timeline from purchase to resale for flipped properties?

Plan for about 166 days (≈5.5 months) from purchase to resale for a typical house flip.

Lean projects with pre-ordered materials and streamlined permits can compress to 8–12 weeks; complex rehabs or slow inspections can extend to 6–12 months. The fastest operators parallel-path scope, materials, contractors, and staging to cut idle days.

You’ll find detailed market insights in our house flipping business plan, updated every quarter.

What percentage of flipped homes are sold to owner-occupiers vs. investors?

Owner-occupier share is growing modestly, but investors still account for a large exit base in many flip markets.

Approximately 10.9% of flips go to FHA buyers, a proxy for first-time/owner-occupiers, with the remainder skewing to conventional, cash, or investor purchases. In some metros, overall investor acquisition activity climbs as high as ~33% of all home purchases, supporting investor-to-investor trades at exit.

Local affordability and mortgage rate levels influence the mix; when rates ease, more owner-occupiers step in and days-on-market shorten.

This is one of the strategies explained in our house flipping business plan.

Always align finishes and pricing with the likely buyer profile in your submarket.

Which property types are most profitable to flip right now?

Entry-level single-family homes and select condos deliver the most reliable flip spreads in 2025.

Distressed and off-market houses remain the best source of discounts; cosmetic-to-medium scopes in supply-constrained school districts perform well. Niche opportunities exist in small multifamily conversions or ADU-ready lots where zoning allows added value.

Commercial categories (industrial, self-storage, medical office) can yield strong returns, but they are usually longer, capital-heavier plays and less “flip-like.”

We cover this exact topic in the house flipping business plan.

Match scope to buyer demand: clean, code-compliant, move-in-ready beats over-customized rehabs.

What is the average renovation cost per flip by size and location?

Use cost per square foot bands to estimate scope quickly and adjust for market and complexity.

Labor and permit intensity drive most variance; urban cores and high-cost regions price higher, while suburban/light-scope projects sit at the lower end. Always pad 10–15% contingency for unknowns behind walls, especially in pre-1970s housing stock.

What are the latest financing options and average interest rates for flippers?

• Expect ~10–11% interest for seasoned borrowers; the general range is 8–15% on fix-and-flip loans.
• Common sources include hard money lenders, private lenders, and HELOCs/second liens on existing equity.
• Loan terms are usually 12–24 months with 1–5% origination and rehab draws released against inspections.
• Some lenders charge interest only on drawn balances (not undrawn rehab funds), reducing carrying cost early in the project.
• Lower LTVs (e.g., 65–80% LTC) and strong track records can improve pricing and speed.

What median resale price increase do flips achieve versus purchase price?

In 2025, many U.S. house flips achieve ~25–30% resale price uplift over the original purchase.

The actual uplift depends on the buy price discount, rehab value-add, and comp trajectory during your hold. Overpaying on acquisition compresses uplift more than any other variable.

Focus on submarkets with tight inventory and clear comp windows; your pricing power is greatest in the first 14–21 days on market.

Get expert guidance and actionable steps inside our house flipping business plan.

Always price to the latest sold comps, not aspirational active listings.

What percentage of flips fail to turn a profit and why?

• Unplanned repairs and change orders that blow the budget (foundation, MEP, mold, roof structure).
• Permit or inspection delays that extend the hold into additional interest accrual and tax/insurance cycles.
• Market softening at resale (rate spikes, seasonal slowdown, local oversupply) that forces price cuts.
• Over-improvement relative to the neighborhood ceiling, reducing ROI on premium finishes.
• Weak listing strategy (poor photos, mispricing, limited availability for showings) increasing DOM and carrying cost.

Where are the geographic hotspots for flipping, and how are they shifting?

Profit-leading flip markets cluster in parts of the Midwest and Northeast in 2025.

Examples frequently cited include metros like Rockford (IL), Toledo (OH), and Buffalo (NY), where entry prices are lower and spreads survive higher rate environments. Some Gulf and Florida metros still see strong cash activity (e.g., Cape Coral, Naples), but margins vary street-by-street as insurance and holding costs rise.

Large coastal markets show more margin compression as acquisition costs and time-to-sell remain elevated; submarket selection matters more than the city label.

This is one of the many elements we break down in the house flipping business plan.

Always underwrite neighborhood-level data (DOM, list-to-sale ratio, permits issued) rather than metro averages.

What regulatory or tax issues affect flipping profitability right now?

• Transfer taxes and stamp duties (e.g., England & Wales) directly reduce net proceeds.
• Short holding periods can trigger higher short-term capital gains rates in several jurisdictions.
• Permit triggers (structural, electrical, plumbing) add fees, inspections, and time risk; violations can stall closings.
• Local energy codes and rental licensing (if interim leasing) add compliance costs in certain cities.
• Insurance availability and premiums in disaster-prone areas materially influence carrying cost and lender terms.

Which buyer demand trends are influencing flip success?

Owner-occupier demand is stabilizing/rising slightly as certain buyers re-enter with FHA and conventional financing.

Updated, move-in-ready homes in school districts with limited inventory continue to command premiums and faster absorption. Investor demand for rent-ready products remains supportive in markets with strong rental yields.

Design choices that photograph well (light palettes, functional kitchens, durable surfaces) amplify online conversion and shorten DOM.

You’ll find detailed market insights in our house flipping business plan, updated every quarter.

Keep finishes consistent with the neighborhood’s top-quartile comps to maintain price integrity.

What is the average monthly holding cost during renovation?

Monthly carrying costs range from hundreds to several thousand dollars depending on taxes, insurance, HOA, utilities, and loan interest.

Hard-money interest is the largest variable: interest-only at ~10–11% annualized on drawn balances adds up quickly on six-figure loans. Taxes, hazard insurance (and, in some states, wind/hail/flood), plus water/power and trash service complete the stack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Realtor.com – Home flipping trends and profitable cities
2. Hamptons – Flipping Index Q1 2025 (England & Wales)
3. U.S. News – Profit margin at 17-year low
4. Daily Herald – Flipping margins fall in 2025
5. Mecklenburg Times – Home flipping profits fall in early 2025
6. Fit Small Business – Fix-and-flip loan guide
7. NerdWallet – Renovation cost guidance
8. Anchor Loans – Fix-and-flip timeline
9. FairFigure – House flipping statistics
10. Los Angeles Times – Flipping profit margin at a low