As the nation saw its highest median home sales prices on record, Investors’ profit margins shrunk. The typical flipped home netted $65,981 in gross profit, down from $77,000 in 2024, resulting in a 25.5 percent return on investment, the lowest rate recorded since 2008 and down from 32.1 percent the prior year.
Profit margins on flipped homes have fallen since 2012, when the typical flip netted a 61.1 percent return on investment. In 2025, a typical median flipped home was purchased for $259,019 and the median flipped price was $325,000, generating a 25.5 percent gross ROI. Profit margins fell year-over-year in 70 percent (150) of the 215 metro areas with sufficient data to analyze.
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