Believe it or not, the average house flip in 2022 still netted a gross profit of $72,000, a powerful reminder that this strategy can pay off handsomely even amidst headlines of rising rates, squeezed margins, and a market slowdown.
Key Takeaways
- Average gross profit per flipped home was $72,000 in 2022
- National average gross flipping ROI was 28.2% in 2023
- Median profit on flips reached $66,000 in Q1 2024
- Home flips totaled 207,909 in 2023, down 4% from 2022
- Flips represented 2.9% of all home sales in 2023
- Quarterly flips hit 49,328 in Q1 2024
- Average renovation cost per flip was $75,000 in 2023
- Kitchen remodels averaged $30,000 in flips 2022
- Total rehab costs rose 15% YoY to $82,000 in 2023
- Cleveland had highest flip activity at 1 in 25 sales 2023
- Memphis flips yielded top ROI in Midwest 2022
- Pittsburgh ranked #1 for flipping profits 2023
- 12% of flips lost money in 2023 nationally
- 27% of flips had ROI under 20% in 2022
- Unexpected repairs ate 15% of profits avg 2023
House flipping profits are declining yet still remain possible for experienced investors.
Flipping Volume
- Home flips totaled 207,909 in 2023, down 4% from 2022
- Flips represented 2.9% of all home sales in 2023
- Quarterly flips hit 49,328 in Q1 2024
- US flips peaked at 428,000 in 2005
- 2022 saw 298,386 single-family flips
- Flips dropped 21% from 2021 peak of 342,000
- Top 10 metros accounted for 25% of flips in 2023
- National flip volume fell 22% YoY in Q4 2023
- Flips as % of sales was 3.6% in 2021
- 2020 flips totaled 223,000 amid pandemic
- Q2 2023 flips at 52,000, down 18%
- Investor flips rose to 28% of market in 2022
- Annual flips declined to under 250,000 in 2023
- Midwest saw 15% flip volume drop in 2023
- Florida flips surged 10% in 2022
- Total flips since 2000 exceed 5 million
- 2023 flips lowest since 2012 at 207,000
- Q1 2024 volume down 3% from prior year
- Peak 2006 flips at 340,000+
- Institutional flips 12% of total in 2023
- Phoenix flips totaled 2,500 in 2022
- Share of flips in sales hit 4% in 2005 bubble
- 2024 projected flips at 200,000 annually
- Southeast flips up 5% in low-volume 2023
- Atlanta metro flips at 1,800 in 2023
- National volume share steady at 3% in 2024 Q1
- Flips down 26% from 5-year average in 2023
- Cleveland led with 8.5% flip share in 2023
Flipping Volume Interpretation
While the recent cooling suggests flippers are no longer the speculative daredevils of the 2005 housing bubble, their current disciplined 3% market share reveals an industry that has matured from a gold rush into a more calculated, albeit smaller, renovation niche.
Market Locations
- Cleveland had highest flip activity at 1 in 25 sales 2023
- Memphis flips yielded top ROI in Midwest 2022
- Pittsburgh ranked #1 for flipping profits 2023
- Florida metros like Tampa saw flip surges 2022
- Atlanta flips profitable at 36% ROI 2023
- Phoenix volume high but profits squeezed 2023
- Midwest markets like Akron led flip shares 2022
- California flips low due to high prices 2023
- Southeast dominated top 10 flip markets 2022
- Detroit offered cheap entry for flips 2023
- Oklahoma City flips averaged $70k profit 2022
- Chicago saw declining flip activity 2023
- Texas cities like Grand Rapids outperformed 2022
- Buffalo NY emerging flip hotspot 2023
- Las Vegas flips down amid cooling market 2022
- Baltimore high flip share at 7% of sales 2023
- Northeast lags in flip volume 2022 data
- Orlando FL flips up 12% in 2023
- West Coast flips under 2% share nationally
- Indianapolis strong Midwest flip market 2022
- Miami high-end flips rising 2023
- Rust Belt cities dominate ROI lists 2022
- Denver CO flips profitable despite costs
- Birmingham AL top Southern market 2023
- Rochester NY flips at 6.8% share 2022
- Houston TX steady flip volume 2023
- St. Louis MO affordable flip location
- Spokane WA rising Pacific Northwest hub
Market Locations Interpretation
While the national narrative fixates on coastal glamour, the data reveals a wittier truth: savvy flippers are finding their fortunes not by the ocean, but in the unassuming heartlands and Rust Belt revival cities, where affordable entry meets outsized profit, proving that sometimes the best return on investment is found where others aren't even looking.
Profit Margins
- Average gross profit per flipped home was $72,000 in 2022
- National average gross flipping ROI was 28.2% in 2023
- Median profit on flips reached $66,000 in Q1 2024
- Average ROI for flips was 30.5% in top markets like Memphis in 2022
- Flipping profits declined 12% year-over-year in 2023
- Gross profit margin averaged 32% for flips in 2021
- Average net profit after expenses was $50,000 per flip in 2023
- ROI hit 41.1% in Pittsburgh for flips in 2023
- National median gross profit fell to $60,000 in 2023
- Flips yielded 25-35% ROI in stable markets per 2022 data
- Average profit margin was 27% in 2020 pre-pandemic
- Q4 2023 ROI averaged 26.8% nationally
- Top 10 markets averaged 35% ROI in 2022 flips
- Net ROI after holding costs was 22% in 2023
- Gross profits rose 5% in Midwest flips in 2023
- Average flip profit was $80,000 in Florida markets 2022
- ROI for beginner flippers averaged 15-20% in 2023
- Experienced flippers saw 40% ROI in 2022
- Profit margins squeezed to 24% amid high rates 2024
- Average return was $92,133 per flip in 2021 peak
- 2023 national ROI dropped to 27.6%
- Phoenix flips averaged 38% ROI in 2022
- Median profit per flip was $65,200 in 2023
- ROI averaged 29% for flips under $200k purchase
- Gross margins hit 33% in investor-heavy areas 2022
- 2024 Q1 profits averaged $58,000 down 10%
- Atlanta flips yielded 36.2% ROI in 2023
- National average profit fell 11.4% in 2023
- Top performers achieved 50%+ ROI in niche markets 2022
- Average ROI stabilized at 28% in Q2 2024
Profit Margins Interpretation
While the average flipper's profit still paints a tempting picture, the narrowing margins reveal an industry where easy money has evaporated, rewarding only the savvy and efficient.
Renovation Costs
- Average renovation cost per flip was $75,000 in 2023
- Kitchen remodels averaged $30,000 in flips 2022
- Total rehab costs rose 15% YoY to $82,000 in 2023
- Cosmetic flips cost under $20,000 on average 2022
- Full gut renos hit $150,000+ per property 2023
- Bathroom updates averaged $15,000 in flips
- Holding costs added 10% to total expenses in 2023
- Paint and flooring cost $10,000 avg per flip 2022
- HVAC replacements ran $8,000 in typical flips
- Roofing repairs averaged $12,000 for flippers 2023
- Electrical upgrades cost $5,000-$10,000 per home
- Curb appeal investments yielded $7,000 avg 2022
- Plumbing fixes averaged $6,000 in distressed flips
- National reno spend per flip up 20% since 2020
- Low-end flips reno at $40,000 avg 2023
- Luxury flips exceeded $200,000 reno costs 2022
- Material costs rose 30% impacting flips 2023
- Labor for flips averaged 40% of reno budget
- Foundation work cost $20,000+ in severe cases
- Smart home upgrades $5,000 avg addition 2023
- Exterior painting $4,000 per flip standard
- Window replacements $10,000-$15,000 range 2022
- Landscaping boosted value at $8,000 cost 2023
- Permits and fees added 5% to reno totals
- Appliance installs $7,000 avg for kitchens
- Demo costs $5,000 for average flip home
- Insulation upgrades $3,000-$6,000 per property
- Drywall and finishing $12,000 avg 2023
Renovation Costs Interpretation
Flippers are increasingly caught between rising renovation costs and thinner margins, proving that you need a strong stomach—and a stronger budget—to stomach today's real estate game.
Risks and Challenges
- 12% of flips lost money in 2023 nationally
- 27% of flips had ROI under 20% in 2022
- Unexpected repairs ate 15% of profits avg 2023
- 1 in 10 flips sold at a loss in high-rate 2023
- Market slowdown caused 20% longer hold times 2023
- Financing challenges hit 40% of new flippers 2022
- Regulatory hurdles delayed 25% of projects 2023
- Over-renovation led to losses in 18% cases 2022
- Inventory shortages raised purchase costs 30% 2023
- Labor shortages increased costs 25% in 2022
- Interest rate hikes cut ROI by 10 points 2023
- 35% of flippers faced buyer financing issues 2022
- Permitting delays averaged 60 days in 2023
- Material inflation hit 40% peak in 2022 flips
- 22% of flips exceeded 12-month hold in 2023
- Rookie flippers lost money 25% more often 2022
- Appraisal gaps caused 15% sale failures 2023
- Weather delays impacted 10% of outdoor renos
- Tax increases on flips rose 5% avg 2023
- Contractor disputes in 20% of projects 2022
- Market timing errors led to 16% losses 2023
- Insurance costs up 20% for flip properties
- Zoning changes halted 5% of planned flips 2022
- Supply chain issues delayed 30% renos 2023
- Buyer inspections revealed issues in 28% 2022
- Foreclosure risk if flips overextend financing
- Competition rose 15% in hot markets 2023
- 8% of flips had negative cash flow 2022
Risks and Challenges Interpretation
Reading this collection of statistical landmines, it's clear that the modern house flipper's mantra has evolved from "location, location, location" to "aggravation, regulation, and inflation."
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