House Flipping in 2025: Margins Under Pressure

House Flipping in 2025: Margins Under Pressure

The LendingOne-ResiClub Q1 2025 Fix and Flip Survey highlights the cautious but ongoing activity in the home flipping market following the end of the pandemic-driven boom. While most flippers still plan to operate in 2025, they face increased regional challenges such as tight inventory, higher costs, looming tariffs, and financing hurdles. The Northeast remains competitive due to limited inventory and strong demand, whereas other regions cite different leading concerns such as borrowing costs and labor shortages.

• 89% plan at least one flip in 2025; 64% will use fix-to-rent strategies.

• 32% predict strong spring 2025 demand nationally

• Top ROI renovation: kitchen upgrades (56%).

• Regional challenges: inventory in the Northeast, financing in the Southeast, and labor/material costs in the West.

Ralph’s Take

Opportunity still exists — but only for those who buy smart. With high financing costs, limited inventory, and renovation expenses remaining elevated, overpaying can quickly erase a flipper’s profit. My advice: stay disciplined, maintain realistic expectations for after-repair costs, and remain sharply focused on the acquisition price. In today’s competitive purchase market, especially when bidding wars come into play, your margin is won, or lost, at the point of purchase.