ATTOM data shows typical gross returns rose in Q1 2026, ending a streak of declining investor margins
US home-flipping profit margins rose in the first quarter of 2026 for the first time in nearly two years, according to ATTOM, a provider of US property data and real estate analytics.
The increase ends a seven-quarter streak of declining returns that had pushed margins to their lowest point since mid-2008. For investors, it is a cautious sign that a market under sustained pressure since the post-pandemic boom may be stabilizing.
The typical gross return on investment (ROI) for a flipped single-family home or condo climbed to 25.4% in Q1 2026, up from 24.7% the prior quarter, itself the lowest reading since mid-2008.
Gross profit on the median transaction rose to $66,000 from $64,300, based on the spread between purchase and resale prices before rehab and carrying costs.
Both figures remain below year-ago levels: in Q1 2025, typical gross profit reached $74,172 and margins averaged 29.6%.
Investors in earlier quarters have already seen how home flippers posted Great Recession-era returns as acquisition costs climbed, a dynamic this quarter's uptick begins, cautiously, to reverse.
Overall flip volume declined year-over-year despite the margin improvement. A total of 64,348 single-family homes and condos were flipped in Q1 2026, representing 8% of all US home sales, up from 7.2% the prior quarter but below the 8.2% rate a year earlier.
Volume fell from 69,711 in Q4 2025 and from 70,579 in Q1 2025.
"The first increase in flipping returns in nearly two years is a welcome sign for investors," said Rob Barber, chief executive officer of ATTOM.
"The market remains far more competitive than it was during the peak profit years, but this quarter's gains suggest that conditions may be stabilizing. Success still depends heavily on local market dynamics, with some metros producing strong returns while others remain difficult places to flip profitably."
Wide variance across metro markets
Among large metros with populations over one million, Pittsburgh, PA, led with typical gross returns of 85.9%, followed by Buffalo, NY, at 84% and Virginia Beach, VA, at 74.9%.
Texas markets registered near-minimal margins: Austin at 2%, Dallas at 4.3%, San Antonio at 5.1%, and Houston at 7.2%, reflecting persistently elevated acquisition costs in those cities.
The highest flip rates by activity were concentrated in the South and Midwest. Columbus, GA, led all markets at 15.2%, ahead of Atlanta, GA, and Canton, OH, both at 12.3%. Year-over-year, flip rates declined in 56.3% of the 174 metropolitan statistical areas (MSAs) analyzed.
For brokers working with fix-and-flip investor clients, the findings reinforce the value of local market knowledge.
Marcia Kaufman, chief executive officer of Bayport Funding, told Mortgage Professional America in December 2025 that the residential transition loan (RTL) market has expanded in scope precisely because fix-and-flip loans are a critical tool for tackling housing inventory shortages: "Much of America's housing stock is aging and in need of tremendous updating," Kaufman said. "The fix-and-flip investor is meaningful in bringing old housing stock to meet today's standards."
Financing shifts and hold times lengthen
All-cash acquisitions edged down to 61.1% of flipped homes from 61.4% the prior quarter, though still above the 59.6% recorded in Q1 2025.
The share of flipped homes sold to buyers using Federal Housing Administration (FHA)-backed mortgages fell to 10.2% from 11.7% a year earlier, a metric that analysts watching how rising mortgage rates squeeze the easy money out of home flips, will recognize as consistent with tightening affordability at the entry-level end of the resale market.
Average hold times rose to 165 days from 160 days the prior quarter, adding incremental carrying cost pressure for leveraged investors.
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