The House Flipping Statistics Investors Should Know in 2024

House flipping has become increasingly popular over the past few years, although interest may be starting to wane.

Out of all home sales in the third quarter of 2024, 7.2% were flips, according to ATTOM. That’s down from 7.6% in the previous quarter.

There’s still plenty of money to be made in home flipping. Gross profit on home flips was $70,250 and return on investment was 28.7%, on average.

Are you thinking about getting into the fix-and-flip game? Want guidance on where to do your next flip? Read on for more essential flipping stats to have on your radar.

Nationwide house-flipping stats: Return on investment, flipping rates, and more

House flips as a percentage of all home sales

House flips as a percentage of all home sales

Percentage of all home sales

In the third quarter of 2024, 74,618 single-family homes and condos were flipped, 7.2% of all home sales in that quarter, according to ATTOM.

That’s down 5% from the previous quarter and 1% from the previous year.

The number and percentage of home purchases that ended up being flipped peaked in the first quarter of 2022. Ten percent of home purchases, nearly 126 thousand properties, were flips that quarter.

Gross profit and return on investment

House-flipping gross profit and return on investment

The average return on investment (ROI) for house flipping in the third quarter of 2024 was 28.7%, and the average gross profit was $70,250, according to ATTOM.

Popular as it is, house flipping has become less profitable over the past several years. In 2016, it netted an average ROI of 49.2% and an average gross profit of $62,624. Compared to a year ago, gross profit has hardly changed while ROI is down about 3%.

Rising median home prices are at least partially responsible for declining returns on investment seen from 2020 through 2023. As house prices have stabilized and in some places declined, flipping ROI has drifted slightly up in recent quarters.

Financed flips have fallen over the past couple of years. Thirty-seven percent of house flips were purchased with financing in 2023, compared to 39% in 2021 and 43% in 2017. In the third quarter of 2024, 36% of flips were done with financing.

Investors are opting to buy, fix and flip homes with cash as a result of increased competition in the housing market. Sellers typically prefer cash offers, particularly banks and lenders with distressed properties to sell.

Home-flipping returns by state

Home-flipping returns by state

Homes flipped in Pennsylvania generated the largest return on investment in the second quarter of 2024, providing a 80.2% return on average, according to ATTOM. While significant, that’s down from a year prior, when houses flipped in the state had an average return of 90.9%.

Only two other states -- Maryland and Illinois -- had average returns on investment for house flipping of more than 60%. In 2021, eight states had average returns on house flipping over 60%.

In terms of gross profit, flips in New Jersey brought in the most cash on average: $166,500.

Fix-and-flippers in Montana had it the worst in the third quarter of 2024; house flipping there only netted investors a 0.8% return on average which was worth $3,734.That’s down from a 6.1% average return worth $22,741 last year.

The ROI for house flipping grew in 13 states year over year. These are the states that saw the largest increase in ROI:

• Ohio: 50% return compared to 32.7% a year ago.
• Nebraska: 43.5% return compared to 31.3% a year ago.
• North Dakota: 29.2% return compared to 17.4% a year ago.

These states that saw the largest drop in ROI year over year:

• Delaware: 55.6% from 99.1% a year ago.
• Washington, D.C.: 21.4% from 38.6% a year ago.
• North Carolina: 30% from 42.7% a year ago.

The best and worst markets for house flipping

Ocala, Florida boasts the best returns for house flippers, netting them an average of 141.5% back on their investments in the third quarter of 2024.

Florida is home to three of the 10 best markets for house flipping by ROI: Ocala (141.5% ROI), Cape Coral-Fort Myers (83.4% ROI), and Pensacola-Ferry Pass-Brent (83.3% ROI).

Another three top ten metro areas for house flipping are in Pennsylvania: Pittsburgh (101.8% ROI), Scranton-Wilkes Barre-Hazleton (100%, ROI), and Harrisburg-Carlisle (91.3% ROI).

The best market by gross profit is San Francisco-Oakland-Hayward in California, where flippers made an average of $234,000 in the third quarter.

No metro areas had negative house flipping returns in the third quarter of 2024. The lowest gross profit and ROI were from homes flipped in Warner Robbins, Georgia, where the average profit was $3,500 and the average ROI was 1.3%.

Six of the 10 worst markets for house flipping by ROI in the third quarter were in Texas

These are the best and worst markets for house flipping by gross return on investment in the second quarter of 2024.

Best markets for house flipping by ROI

Best markets for house flipping

The best markets for house flipping

Ocala, Florida boasts the best returns for house flippers, netting them an average of 141.5% back on their investments in the third quarter of 2024.

Florida is home to three of the 10 best markets for house flipping by ROI: Ocala (141.5% ROI), Cape Coral-Fort Myers (83.4% ROI), and Pensacola-Ferry Pass-Brent (83.3% ROI).

Another three top ten metro areas for house flipping are in Pennsylvania: Pittsburgh (101.8% ROI), Scranton-Wilkes Barre-Hazleton (100%, ROI), and Harrisburg-Carlisle (91.3% ROI).

The best market by gross profit is San Francisco-Oakland-Hayward in California, where flippers made an average of $234,000 in the third quarter.

No metro areas had negative house flipping returns in the third quarter of 2024. The lowest gross profit and ROI were from homes flipped in Warner Robbins, Georgia, where the average profit was $3,500 and the average ROI was 1.3%.

Six of the 10 worst markets for house flipping by ROI in the third quarter were in Texas

These are the best and worst markets for house flipping by gross return on investment in the second quarter of 2024.

Best markets for house flipping by ROI

Worst markets for house flipping

Worst markets for house flipping by ROI

The bottom line for investing in house flipping

House flipping is not generating the same return on investment as in years past but gross profit has shown promising signs. House prices were growing faster than the value of flipped homes in recent years which has cut into returns, although the market appears to be stabilizing.

Inflation, stubbornly high mortgage rates, and other economic headwinds challenged homebuyers in recent years as well as home flippers who are looking to resell. Still, house flipping remains popular, and there are lucrative markets to tap into. Cooling inflation and steadier mortgage rates may provide a boost to the industry.

Statistics aren't everything, but they can provide a good idea of what sort of competition house flippers face and in which markets to focus investments. They also offer a baseline to set expectations for profits and ROI.

The bottom line is that the capital costs of house flipping remain high, while returns have shrunk.

Thankfully, there’s more than one way to invest in real estate, including residential real estate. Real estate investment trusts, or REITs, are among the most accessible ways for anyone to gain exposure to real estate without having to oversee a construction project and put a sizable amount of cash on the line.