House-Flipping Activity Continues to Cool
Higher borrowing and renovation costs, limited inventory and rising competition are squeezing margins, pushing investors to adjust strategies, according to ATTOM.
NEW YORK – House-flipping activity has slowed as higher borrowing costs, rising renovation expenses and tight housing supply make profits harder to achieve.
About 297,885 single-family homes and condos were flipped nationwide in 2024, down 7.7% from 2023 and down more than 32% from 2022, according to data from ATTOM. In the third quarter of 2025, foreclosure filings of distressed properties across the U.S. rose 17% compared to the same quarter in 2024.
While successful flips can still generate strong returns, investors face challenges including high mortgage rates, limited home inventory, higher insurance and labor costs and increased competition.
"There is increasing competition from institutional and foreign buyers, and it's becoming harder to find good deals," said Anthony Youngs, a real-estate consultant and house flipper.
Some experienced investors are adapting by focusing on lighter cosmetic renovations, shorter turnaround times or alternative exit strategies, such as rentals or contract assignments.
Industry observers say the current market has made house flipping riskier, requiring more caution, capital, and flexibility than in recent years.
Source: Wall Street Journal (12/10/25) Ioannou, Lori
© Copyright 2026 Smithbucklin