Home flipping volumes are falling nationally, but some metros continue to generate outsized returns
The US home flipping market continued its two-year retreat in Q2 2026, with margins and gross profits declining from both the prior quarter and a year earlier, according to a report from ATTOM, a provider of property data and real estate analytics.
A total of 77,991 single-family homes and condominiums were flipped in the second quarter, representing 6.2% of all home sales. That's down from 8% in Q1 2026 and 7.3% in the same period last year.
For mortgage brokers who work with fix-and-flip investors or renovated-property buyers, tightening economics demand careful market selection.
Returns keep falling for the second year running
The typical gross profit on a flipped home in Q2 2026 was $60,526, reflecting a profit margin of 21.5%. That compares to $66,932 and a 25.7% margin in Q1, and $71,000 at 27.6% in Q2 2025.
In both absolute and percentage terms, flipping returns have trended lower for two consecutive years.
"Flippers are still making money in most markets, but the typical return continues to narrow," said Rob Barber, chief executive officer of ATTOM.
"The second-quarter numbers continue the general downward trend in profit margins and gross profits we have seen over the past two years."
Flipping rates declined quarter-over-quarter in 87.1% of the 186 metro areas analyzed.
Among smaller markets, Columbus, Georgia led nationally at 13.6% of all home sales, followed by Canton and Akron in Ohio at 11.6% and 11.2%.
With mortgage rate pressures continuing to shape homebuyer demand across the US housing market, these smaller Southern and Midwest markets remain active flipping zones where acquisition costs are still low enough to preserve investor returns.
A new analysis from Zillow found that newly built homes are selling for a lower median price per square foot than existing homes nationwide, driven largely by increased inventory and builder incentives in key Sun Belt markets.https://t.co/p9BiScqJaw
— Mortgage Professional America Magazine (@MPAMagazineUS) September 30, 2026
Where flip margins still reward the patient investor
Among large metros, Pittsburgh, Pennsylvania posted the highest typical profit margin at 81.5%, followed by Buffalo, New York at 76.6%, and New Orleans, Louisiana at 75%.
Virginia Beach, Virginia and Philadelphia, Pennsylvania rounded out the top five at 63.4% and 62.8%, respectively.
On the other hand, San Antonio posted a loss of 0.3%, while Dallas and Austin returned margins of just 1.8% and 2.8%.
Properties acquired between $100,000 and $200,000 generated typical margins of 28%, the strongest tier nationwide.
At the lowest end, homes purchased for $50,000 or less produced an average loss of $15,000, representing a negative 38% return on investment.
The typical flip timeline shortened to 161 days in Q2 2026, down from 165 in Q1 and 166 a year earlier.
The share of flipped homes sold to Federal Housing Administration (FHA) buyers ticked up to 10.7%, compared to 10.1% in Q1, a modest signal of entry-level demand recovery.
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