Home flippers see smallest profits since the Great Recession, real estate data firm says

• Home flipping activity dropped nearly 4% from the prior year, reaching its lowest level since 2020.
• The typical home flip in 2025 yielded a gross profit of $65,981, representing a 25.5% return on investment (ROI), which is the lowest since 2008.
• Net profits are further squeezed by ongoing supply chain issues, tight labor markets, and tariff-related increases in material prices.

Home flippers are experiencing their smallest profits since the Great Recession, primarily due to higher mortgage rates, elevated home prices, and tight supply. The number of home flips and the return on investment have significantly declined, making the market challenging for investors.