Why it matters
- The typical flip earned a 21.5% gross margin in the second quarter, down from 25.7% in the first quarter and 27.6% a year earlier.
- Flips rose 20% from the first quarter, but made up a smaller share of all home sales.
- ATTOM's margin is measured before rehab, holding and financing costs, so most flippers' net returns are lower.
House flippers sold more homes in the second quarter of 2026 than in the first, but they made less on each one, according to ATTOM's quarterly home flipping report, released Oct. 1.
The typical flip earned a gross profit of $60,526, down from $66,932 in the first quarter and $71,000 a year earlier. As a share of the purchase price, the typical margin fell to 21.5%, from 25.7% in the first quarter and 27.6% in the second quarter of 2025.
"Flippers are still making money in most markets, but the typical return continues to narrow," said Rob Barber, ATTOM's chief executive.
More flips, smaller share
Investors flipped 77,991 homes in the quarter, up about 20% from 64,760 in the first quarter but down about 3% from 80,477 a year earlier.
Flips made up 6.2% of all home sales, down from 8.0% in the first quarter and 7.3% a year earlier. The number of flips rose, but total home sales rose faster in the spring selling season, so flips were a smaller part of the market.
| Measure | Q2 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|
| Homes flipped | 80,477 | 64,760 | 77,991 |
| Share of all sales | 7.3% | 8.0% | 6.2% |
| Typical gross profit | $71,000 | $66,932 | $60,526 |
| Typical margin | 27.6% | 25.7% | 21.5% |
| Typical days to flip | 166 | 165 | 161 |
| Sold to FHA buyers | 12.3% | 10.1% | 10.7% |
Margins fell in most markets
Typical margins declined from the first quarter in 126 of the 186 metro areas ATTOM analyzed, or about two-thirds. The flipping rate fell from the first quarter in 162 of those metros.
The gap between markets was wide. Among metros with more than 1 million people, typical margins ranged from 81.5% in Pittsburgh to a slight loss in San Antonio. We break down the best and worst markets in Where Flips Still Pay.
Price point mattered
Homes bought for $100,000 to $200,000 produced the highest typical margin, about 28%, followed by homes bought for $200,000 to $300,000 at about 26%. Margins were about 20% for homes bought for $300,000 to $400,000. At the bottom of the market, homes bought for under $50,000 posted a typical loss of 38%.
Faster, but not by much
The typical flip took 161 days from purchase to resale, down from 165 in the first quarter and 166 a year earlier. That's still more than five months of interest, taxes, insurance and utilities.
What it means for your numbers
ATTOM's gross profit is the resale price minus the purchase price. It doesn't subtract renovation, holding, financing or selling costs. A flip with a 21.5% gross margin can easily end up with a single-digit net return once those costs are paid.
That makes the details of each deal more important as margins narrow:
- Run the full numbers. The Deal Analyzer subtracts rehab, financing, holding and closing costs and grades the deal on what's left.
- Know your floor. The Break-Even Sale Price calculator shows how far your sale price can fall before you lose money.
- Price the calendar. At about 161 days, holding costs are a meaningful part of every flip. The Holding Cost Timer shows what each month costs.
About the data
ATTOM counts a flip as an arm's-length sale of a home that was previously bought in an arm's-length sale within the prior 12 months. Its margin figure is gross profit as a share of the original purchase price.
Sources
- ATTOM, Home Flipping Profits Continue Gradual Two-Year Decline (Oct. 1, 2026)