Key facts
- Home flipping activity decreased in Q1 2026, with 64,348 homes flipped, accounting for 8% of all sales.
- This represents a decrease from 69,711 flips in Q4 2025 and 70,579 in Q1 2025.
- Typical gross returns for flipped homes rose to 25.4% in Q1 2026, up from 24.7% in the prior quarter.
- Gross profits increased to $66,000, up from $64,300 in Q4 2025.
- Despite rising gross margins, experts warn that cost pressures may limit net returns for investors.
Home flipping activity in the U.S. saw a decline in the first quarter of 2026, according to ATTOM's latest report. A total of 64,348 single-family homes and condominiums were flipped, representing 8% of all home sales during the period. This number is down from both the previous quarter and the same period last year.
Despite the slowdown in activity, investor profitability showed a modest improvement. Typical gross returns on flipped homes rose to 25.4% in the first quarter of 2026, up from 24.7% in the fourth quarter of 2025. This marks the first quarterly gain in nearly two years, though margins remain below year-ago levels of 29.6%.
Gross profits also increased to $66,000, up from $64,300 in the prior quarter, but still trailed the $74,172 recorded in the first quarter of 2025. ATTOM CEO Rob Barber noted this as a welcome sign for investors, suggesting potential market stabilization.
Flipping activity increased on a quarterly basis in 77% of the 174 metro areas analyzed, but it declined year-over-year in 56.3% of markets. Columbus, Georgia; Atlanta; and Canton, Ohio, reported the highest flipping rates.
Industry experts, however, urged caution in interpreting the rising gross margins. Sean Faries, CEO of Land Gorilla, stated that these figures do not account for significant cost pressures such as rehab, financing, and carrying costs, suggesting that the data reflects a more selective market rather than a broad rebound. Megan Castleton, chief credit officer at Constructive Capital, emphasized that the current market rewards discipline and careful deal selection.