Affluent Savvy
Affluent Savvy
Photo: Eva Bronzini
On average nationwide, house flipping generated a gross profit of $65,000 in 2021, on par with gross profit in 2017. But return on investment has shrunk to 31% from 51% over the same period. Gross flipping profit rose to $67,000 in the first quarter of 2022 but return on investment continued to decline to just 26%.
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Learn More »House flipping has become increasingly popular over the last few years. In 2017, just 5.7% of all home sales were flips. By the first quarter of 2022, that share jumped to 9.6%. The popularity of flipping shows such as HGTV's Fixer Upper and Flip or Flop probably has something to do with it. Growing interest from millennials doesn't hurt, either. Are you thinking about getting into the fix-and-flip game? Just want guidance on where to do your next flip? Here are more essential flipping stats to have on your radar for 2022. Nationwide house-flipping stats: ROIs, flipping rates, and more Nationally, flipping activity was on the rise in 2021. 323,465 homes were flipped in 2021, the most homes flipped in a single year since 2006 and a 26% increase from 2020. Enthusiasm for home flipping grew in the first quarter of 2022. 114,706 homes were flipped, up nearly 7% from the previous quarter. House flips as a percentage of all home sales House flipping has been rising in popularity -- but how popular is it? The United States usually sees between 5 and 6 million homes sold per year. Here's how many of them are flips: House flipping gross profit and return on investment Popular as it is, house flipping has become less profitable over the past several years. On average nationwide, house flipping generated a gross profit of $65,000 in 2021, on par with gross profit in 2017. But return on investment has shrunk to 31% from 51% over the same period. Gross flipping profit rose to $67,000 in the first quarter of 2022 but return on investment continued to decline to just 26%. Rising median home prices are likely at least somewhat responsible for declining returns on investment. Financed flips have fallen over the past couple of years, too. It seems more investors are opting to buy their homes with cash -- likely due to the increased competition many markets are seeing. Cash offers are typically preferred by sellers, particularly banks and lenders with distressed properties to sell. The following data bears this out: Home-flipping returns by state Pennsylvania came in with the most significant gross return on investment (ROI) in the first quarter of 2022. The average fix-and-flip investor there received 78.9% ROI, down from a 92.6% ROI in 2020. Idaho investors had it the worst, with a mere 10.1% ROI in the first quarter of 2022, down from 15.6% in 2020. House flippers in Texas, New Mexico, Arizona, Colorado, Utah, and Oregon didn’t reap many rewards either. Those states also had ROIs under 15% in the first quarter of 2022.
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The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.
Learn More »Data source: ATTOM Data (2022). State Gross Profit, Q1 2022 Gross ROI, Q1 2022 Alabama $51,600 36.00% Arizona $50,000 13.50% Arkansas $45,000 34.60% California $92,500 16.10% Colorado $58,100 13.10% Connecticut $86,568 40.60% Delaware $112,400 50.20% District of Columbia $205,000 40.20% Florida $69,500 26.00% Georgia $45,100 17.80% Hawaii $113,650 22.00% Idaho $39,085 10.10% Illinois $82,250 54.80% Indiana $37,340 24.90% Iowa $43,000 31.90% Kansas $34,600 16.80% Kentucky $67,500 50.90% Louisiana $82,500 62.30% Maine $75,053 29.40% Maryland $121,000 57.10% Massachusetts $111,000 32.60% Michigan $56,600 49.90% Minnesota $50,000 19.20% Mississippi $25,478 15.40% Missouri $32,894 18.60% Montana $71,986 22.90% Nebraska $74,000 49.00% Nevada $60,100 16.50% New Hampshire $64,500 20.80% New Jersey $138,700 60.00% New Mexico $31,959 13.70% New York $96,798 33.00% North Carolina $57,738 23.30% North Dakota $71,500 43.10% Ohio $50,000 41.70% Oklahoma $60,000 45.10% Oregon $53,705 12.50% Pennsylvania $97,000 78.90% Rhode Island $95,000 35.80% South Carolina $62,550 33.60% Tennessee $87,000 46.30% Texas $37,950 14.30% Utah $54,782 13.00% Vermont $45,436 23.60% Virginia $105,450 52.40% Washington $107,000 25.80% West Virginia $37,500 24.20% Wisconsin $57,600 37.20% Wyoming $56,236 22.60% The best and worst markets for house flipping If you're looking for the best place to make your next fix-and-flip investment, markets in Pennsylvania are the best spots to consider. The state claimed three of the top 10 sites in terms of ROI at the start of this year, according to ATTOM Data. Best markets for house flipping in 2022: Scranton-Wilkes-Barre-Hazleton, Pennsylvania: Q1 2022 ROI 115.50%; gross returns down 25%. Kingsport-Bristol-Bristol, Tennessee-Virginia: Q1 2022 ROI 114%; gross returns up 54%. Reading, Pennsylvania: Q1 2022 ROI 108.6%, no change in gross returns. Pittsburgh, Pennsylvania: Q1 2022 ROI 105.7%, gross returns down 30%. Johnson City, Tennessee: Q1 2022 ROI 101.1%, gross returns up 48%. Lake Charles, Louisiana: Q1 2022 ROI 94.6%, gross returns down 21%. Buffalo-Cheektowaga-Niagara Falls, New York: Q1 2022 ROI 88.2%, gross returns down 34%. Kalamazoo-Portage, Michigan: Q1 2022 ROI 88.1%, gross returns down 5%. Dayton, Ohio: Q1 2022 ROI 84.4%, gross returns down 34%. Warner Robins, Georgia: Q1 2022 ROI 83.1%, gross returns down 3%. Worst markets for house flipping in 2022: Boise City, Idaho: Q1 2022 ROI 4.4%; gross returns down 25%. Fort Collins, Colorado: Q1 2022 ROI 5.7%, gross returns up 54%. College Station-Bryan, Texas: Q1 2022 ROI 7.2%, no change in gross returns. Sacramento-Roseville-Arden-Arcade, California: Q1 2022 ROI 9%, gross returns down 30%. Santa Rosa, California: Q1 2022 ROI 9.6%, gross returns up 48%. Tyler, Texas: Q1 2022 ROI 9.7%, gross returns down 21%. Las Cruces, New Mexico: Q1 2022 ROI 10.4%, gross returns down 34%. Portland-Vancouver-Hillsboro, Oregon-Washington: Q1 2022 ROI 10.8%, gross returns down 5%. Austin-Round Rock, Texas: Q1 2022 ROI 10.8%, gross returns down 34%. Colorado Springs, Colorado: Q1 2022 ROI 11.1%, gross returns down 3%. The bottom line Statistics aren't everything, but they can give you a good idea of what sort of competition you'll face and what markets to focus your investing efforts in. You should also use them to set expectations for your next flip and guide you when making an offer. If a market offers typically low ROIs, you'll need to work even harder to secure a low price point to get returns. Estimating your rehab costs accurately will be even more critical, too. Sources Attom Data (2022). "Home Flips Increase But Profits Decline Across U.S. In 2021." Attom Data (2022). "Home Flipping Spikes Across U.S. in First Quarter of 2022 But Profits Drop to 13-Year Low."
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