Fix & Flip Market Update: December 2025 Trends
Profit margins for house flips hit a 17-year low in Q2 2025 due to high borrowing costs and longer market times, but select markets show 35%+ ROI potential.
Current Challenges
Flip volumes down ~15% YoY; average rates 9-15% squeeze margins amid rising reno costs from tariffs and labor shortages.
High-inventory areas like Florida/Texas face slower sales; focus shifting to light rehabs.
Emerging Opportunities
Strongest markets: Phoenix, Cleveland, Birmingham, Fayetteville—steady demand, shorter 165-day flips.
Experts optimistic for 2026 stabilization as inventory builds and rates potentially ease.
What's your 2025 flip experience? Sharing markets or strategies?