Irvine, Calif. – October 01, 2026 -- U.S. home flippers earned a typical gross profit margin of 21.5 percent in the second quarter of 2026, down from 25.7 percent in the prior quarter and 27.6 percent a year earlier, according to ATTOM's Q2 2026 U.S. Home Flipping Report.
Investors flipped 77,991 single-family homes and condominiums in the quarter, representing 6.2 percent of all home sales nationwide. That flipping rate fell sharply from 8 percent in the first quarter of 2026 and from 7.3 percent in the second quarter of 2025, even though the raw volume of flips rose from 64,760 the previous quarter. Volume remained below the 80,477 flips recorded a year earlier.
Gross profits drop to $60,526 as margins compress nationwide
Typical gross flipping profit -- the gap between purchase and resale price before rehab costs -- fell to $60,526 in Q2 2026, down from $66,932 in the first quarter and $71,000 in the same period of 2025. Rob Barber, CEO of ATTOM, said flippers are still making money in most markets but returns continue to narrow, extending a two-year downward trend in both margins and gross profits.
Flipping rates fell in 87 percent of metro areas quarter-over-quarter
The flipping rate declined sequentially in 162 of 186 metro areas analyzed (87.1 percent) and dropped year-over-year in 131 metros (70.4 percent). Columbus, GA led all metros at 13.6 percent of sales, followed by Canton, OH (11.6 percent), Akron, OH (11.2 percent), Fayetteville, NC (10.9 percent) and Macon, GA (10.6 percent). Among metros with populations above 1 million, Cleveland, OH (10.4 percent), Columbus, OH (9.5 percent), Memphis, TN (9.5 percent), Dallas, TX (9.4 percent) and Phoenix, AZ (8.9 percent) posted the highest flipping activity, while Rochester, NY (2.7 percent), Seattle, WA (4 percent), Washington, D.C. (4 percent), Pittsburgh, PA (4.5 percent) and Portland, OR (4.8 percent) recorded the lowest.
Pittsburgh delivers highest margins; San Antonio flips post a loss
Profit margins declined quarter-over-quarter in 126 of 186 metros (67.7 percent). Among large metros, Pittsburgh, PA generated the widest margin at 81.5 percent, followed by Buffalo, NY (76.6 percent), New Orleans, LA (75 percent), Virginia Beach, VA (63.4 percent) and Philadelphia, PA (62.8 percent). San Antonio, TX was the only large metro where the typical flip lost money, posting a negative 0.3 percent return, ahead of Dallas, TX (1.8 percent), Austin, TX (2.8 percent), Houston, TX (3.7 percent) and Salt Lake City, UT (4.7 percent).
$100,000-$200,000 homes deliver the strongest flipping returns
Properties acquired for $100,000 to $200,000 generated the highest typical margin nationwide at 28 percent, followed by the $200,000-$300,000 bracket at 26 percent and the $300,000-$400,000 range at 20 percent. Homes purchased for $50,000 or less produced a typical loss of $15,000, a negative 38 percent return.
Flip timelines shorten to 161 days as FHA buyer share rises
The typical flip took 161 days from purchase to resale in Q2 2026, down from 165 days in the prior quarter and 166 days a year earlier. The share of flipped homes sold to FHA-backed buyers rose to 10.7 percent, up from 10.1 percent in the first quarter but below 12.3 percent a year ago. Baton Rouge, LA had the highest FHA buyer share at 28.2 percent, followed by Reading, PA (25.3 percent), Tuscaloosa, AL (23.9 percent), Scranton, PA (23.4 percent) and El Paso, TX (22.3 percent).