According to ATTOM’s Year-End 2023 U.S. Home Flipping Report, a total of 308,922 single-family homes and condos were flipped in the United States throughout 2023. The report noted that this figure marks a notable decrease of 29.3 percent compared to the 436,807 flips recorded in 2022, representing the most substantial annual decline since 2008.
As highlighted in the report, flipping activity by investors experienced its sharpest decline in 15 years. Moreover, the data indicates a proportional decrease in flips as a share of all home sales, dropping from 8.6 percent in 2022 to 8.1 percent in the past year.
ATTOM’s latest home flipping analysis revealed investment returns on flips have plummeted to their lowest level since 2007, signaling challenging times for the home-flipping sector. Additionally, profits and profit margins have also declined on swift buy-renovate-and-resell projects, further indicating the downturn in the industry.
The report stated that investors witnessed a decline in profit margins for the sixth time in seven years as the median price of flipped homes dropped slightly faster than their acquisition price, down 4.4 percent compared to 4 percent. Nationwide, gross profits on typical home flips in 2023 decreased to $66,000 from $70,100 in 2022. This translated to just a 27.5 percent return on investment, down from 28.1 percent in 2022 and 35.7 percent in 2021 ($75,000) marking the lowest level since 2007.
The latest home flipping report also stated that in 2023, homes flipped nationwide were sold for a median price of $306,000, yielding a gross flipping profit of $66,000 above the median original purchase price paid by investors, which stood at $240,000. Of the 56 metro areas in the U.S. with a population of 1 million or more, those with the lowest gross flipping profits on median-priced transactions in 2023 included Austin, TX (with a loss of $18,640); San Antonio, TX ($12,289 profit); Dallas, TX ($14,817 profit); Houston, TX ($16,932 profit); and Phoenix, AZ ($25,000 profit).
In this post, we take a more granular look at the data behind ATTOM’s latest U.S. Home Flipping Report to reveal the top 10 U.S. counties with the highest annual percentage increases in home flipping returns in 2023. Among those counties with a population greater than 100,000 and 50 or more home flips in 2023, those with the highest annual percentage increases in home flipping returns include:
#10 – Schuylkill County, PA
· 57.2 percent ROI in 2022
· 144.4 percent ROI in 2023
#9 – Washington County, OR
· 7.3 percent ROI in 2022
· 18.4 percent ROI in 2023
#8 – Warren County, OH
· 26.1 percent ROI in 2022
· 79.4 percent ROI in Q3 2023
#7 – San Francisco County, CA
· 8.9 percent ROI in 2022
· 33.3 percent ROI in 2023
#6 – Lorain County, OH
· 45 percent ROI in 2022
· 173.5 percent ROI in 2023
#5 – Maui County, HI
· 1.6 percent ROI in 2022
· 6.8 percent ROI in 2023
#4 – Penobscot County, ME
· 6.9 percent ROI in 2022
· 31.1 percent ROI in 2023
#3 – Warren County, KY
· 28.5 percent ROI in 2022
· 133.1 percent ROI in 2023
#2 – Chautauqua County, NY
· 6.8 percent ROI in 2022
· 33.8 percent ROI in 2023
#1 – Scott County, MN
· 3.5 percent ROI in 2022
· 20.5 percent ROI in 2023
Want to learn more about home flipping trends in your area? Contact us to find out how.
