Home Flipping Rates and Profits Decreased in 2023

From 2022 to 2023, home flipping decreased by 29.3%, marking the largest annual drop since 2008, according to ATTOM.

In 2022, 436,807 single-family homes and condos were flipped in the United States, compared to only 308,922 in 2023. In the fourth quarter of 2023, about 80% of homes flipped were completed by investors.

Geographically, home flipping decreased most significantly in the South and West. The top five metros with the biggest decreases in flipping were:

1. Gainesville, Georgia
2. Phoenix, Arizona
3. Prescott, Arizona
4. Charlotte, North Carolina
5. Provo, Utah

In addition to fewer homes flipped, gross flipping profits (the difference between the median sales price and the median amount originally paid by investors) also declined from $70,100 in 2022 to $66,000 in 2023. This translated to a 27.5% return on investment compared to the original acquisition price. Comparatively, the typical nationwide ROI for flipped homes was 28.1% in 2022 and 35.7% in 2021.

Conversely, the percentage of flipped homes originally purchased by investors with financing increased to 36.5% in 2023, compared to 35.7% in 2022. Also, 63.5% of homes flipped were originally bought with cash down (a decrease from 64.3% in 2022), and 10.8% of the total homes flipped in 2023 were sold to buyers using a loan backed by the Federal Housing Administration.

Finally, the time it took for home flippers to sell homes in 2023 increased slightly from an average of 165 days in 2022 to an average of 169 days in 2023. In 2021, the average time it took was 158 days.