One reason home flipping gross profits are on the rise in these areas is that homes are relatively inexpensive while values are rising fast due to population growth. For example, according to Zillow, the median home price in Dallas, TX, was $233,148 in early 2020, while property values surged 7.5% in 2019. Meanwhile, the Dallas metro area's population has been growing at a brisk pace -- it added about 130,000 new residents in the past year -- thanks to a strong job market, which is also helping drive home prices higher.
Meanwhile, metros like Oklahoma City, OK, have some of the most affordable homes in the country. The median home price in that city was $128,000 in 2019. Values there are growing fast, up nearly 7% year over year, which has helped boost gross flipping profits.
Even large metro regions like Chicago can be a good place for flippers looking for outsized profit potential. The gross profits in the area have jumped about 20% in the past year, driven by a 5% increase in home values. Flippers can find deals that can boost their profits by looking for lower-priced homes, with many in the region fetching less than $250,000.
Cities with the lowest renovation costs
Another crucial factor in home flipping profitability is the expense of completing the home remodel, which varies significantly by metro region. Here's a look at the cities with the lowest average remodeling costs: