Flipping in a High-Cost Market: Are Investors Downsizing Their Projects in 2025?

[Andy Gonzales]

I’ve been talking with a few investors lately who mentioned they’re shifting focus from large rehabs to smaller, quicker flips — especially in markets where holding costs and labor are getting tougher to manage.

It seems like more people are choosing cosmetic updates or smaller square footage homes to keep margins healthy and timelines short.

Curious if anyone else is noticing this trend in their market:

• Are you adjusting your project sizes this year?

• How are you balancing profit vs. speed in 2025’s market?

• Any regions where full rehabs are still outperforming?

Would love to hear what’s been working for everyone lately.

[Scott Chilton]

Andy, that’s a great question and a smart thing to be thinking about right now. In many markets, the investors who are winning are the ones who keep projects small and move fast. Lighter rehabs mean less risk with labor delays and price swings, plus you free up capital quicker for the next deal. The key is finding that sweet spot where you can add visible value without sinking months of work into it. You’ll likely see better returns through volume and speed rather than going deep on one big project.