ATTOM Data Solutions’ newly released 2020 Year-End U.S. Home Flipping Report revealed that both home flipping sales and home flipping profit margins declined across the U.S. in 2020, with just 241,630 single family homes and condos flipped. That number was down 13.1 percent from 2019 to the lowest point since 2016.
According to ATTOM’s latest home flipping analysis, the number of homes flipped in 2020 represented 5.9 percent of all home sales in the nation during the year. That rate was down from 6.3 percent in 2019 to the same percentage seen in 2018. Those declines marked the first time since 2014 that both the number of homes flipped and flips as a percent of all home sales decreased annually.
The year-end analysis also showed that while home flipping activity declined, gross profits and profit margins shifted in opposite directions, with profits rising in 2020 but profit margins dipping, marking the third straight year of declining ROIs.
ATTOM’s new home flipping report noted that flips in 2020 typically generated a gross profit of $66,300 nationwide, up 6.6 percent from $62,188 in 2019 to the highest point since at least 2005. That profit of $66,300 translated into just a 40.5 percent ROI compared to the original acquisition price, down from 41.5 percent in 2019 and from 46.4 percent in 2018. The report also noted the 2020 ROI was off more than 10 percentage points from peaks over the past decade in 2016 and 2017, standing at the lowest point since 2011.
The 2020 year-end home flipping analysis stated that among the 6,806 U.S. zip codes included in the analysis, there were 10 among those with a population of 5,000 or more and at least 10 home flips in 2020, where flips accounted for at least 25 percent of all home sales last year. Those zip codes were led by 38116 in Shelby County (Memphis), TN (31.5 percent); 45207 in Hamilton County (Cincinnati), OH (29.8 percent); 38127 in Shelby County (Memphis), TN (28 percent); 38115 in Shelby County (Memphis), TN (27.8 percent) and 38128 in Shelby County (Memphis), TN (27.5 percent).
In this post, we take a deeper dive into the data at the zip code level to uncover those zips with the most homes flipped in 2020. Among U.S. zip codes with a population of 5,000 or more and at least 10 flips in 2020, the top 10 zips with the most flips included: 38127 – Memphis, TN (244 homes flipped in 2020); 85142 – Queen Creek, AZ (209 homes flipped); 34668 – Port Richey, FL (200 homes flipped); 37042 – Clarksville, TN (196 homes flipped); 85138 – Maricopa, AZ (194 homes flipped); 85351 – Sun City, AZ (190 homes flipped); 85032 – Phoenix, AZ (186 homes flipped); 08757 – Toms River, NJ (184 homes flipped); 28269 – Charlotte, NC (182 homes flipped); and 38128 – Memphis, TN (167 homes flipped).
The typical gross profits in those top 10 zips with the most homes flipped in 2020 were: 38127 – Memphis, TN ($50,200); 85142 – Queen Creek, AZ ($37,001); 34668 – Port Richey, FL ($53,250); 37042 – Clarksville, TN ($53,700); 85138 – Maricopa, AZ ($27,250); 85351 – Sun City, AZ ($53,875); 85032 – Phoenix, AZ ($81,300); 08757 – Toms River, NJ ($112,250); 28269 – Charlotte, NC ($24,000); and 38128 – Memphis, TN ($49,900).
ATTOM’s most recent home flipping analysis also reported that in Q4 2020, there 51,993 home flips completed by 43,929 investors, a ratio of 1.18 flips per investor. The report noted the median gross-flipping profit on home flips in Q4 2020 was $70,500, which represented a typical 40.3 percent ROI, down from 44.3 percent in Q3 2020 and from 40.5 percent in Q4 2019. The report also noted that home flips completed in Q4 2020 took an average of 176 days, up from 169 days in Q4 2019.
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