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The House Flipping Statistics Investors Should Know in 2020


Sep 15, 2020 by Aly J. Yale

House flipping has become increasingly popular over the last few years. In 2017, just 5.7% of all home sales were flips. As of the first quarter of this year, that share jumped to 7.5%.

The popularity of flipping shows such as HGTV's Fixer Upper and Flip or Flop probably has something to do with it. Growing interest from millennials doesn't hurt, either.

Are you thinking about getting into the fix-and-flip game? Just want guidance on where to do your next flip? Here are more important flipping stats to have on your radar.

Nationwide stats: ROIs, flipping rates, and more

Nationally, flipping activity is rising. The first quarter of 2020 marked the highest level of home flips since early 2006 and a nearly 2-percentage-point jump over the last three years.

But it was becoming less profitable. In fact, 2019 marked the lowest average home-flipping return since 2011. In the first quarter of 2020, returns dropped in 54% of all U.S. markets with the average flip bringing in just over $62,000.

Q2 has seen a sharp rise in both gross profits and ROI, though:

Financed flips have fallen over the past couple years, too. It seems more investors are opting to buy their homes with cash -- likely due to the increased competition many markets are seeing. Cash offers are typically preferred by sellers, particularly banks and lenders with distressed properties to sell. The following data bears this out:

Share of flips purchased with financing:

  • Q2 2020: 43.3%
  • 2019: 43.8%
  • 2018: 45.9%
  • 2017: 42.9%

Share of flips purchased with all cash:

  • Q2 2020: 56.7%
  • 2019: 56.2%
  • 2018: 54.1%
  • 2017: 57.1%

Home-flipping returns, by state

Kentucky came in with the biggest return on investment (ROI) during Q2 2020. The average fix-and-flip investor there got 86.5% ROI. Idaho investors had it the worst, with a mere 14.8% ROI for the same time period. Investors in Arizona, Nevada, Montana, Alaska, Texas, Wyoming, and Hawaii didn't reap much reward either; all three states had average ROIs under 25%.

State Gross profit, Q2 2020 Gross profit, Q2 2019 ROI, Q2 2020 ROI, Q2 2019
Kentucky $73,500 $53,000 86.5% 50.5%
Pennsylvania $87,900 $85,000 86.2% 100.0%
Ohio $67,112 $57,250 86.2% 76.3%
Delaware $101,170 $89,500 85.1% 79.6%
Connecticut $109,999 $78,900 79.9% 56.3%
New Jersey $120,000 $108,000 75.0% 71.1%
Illinois $78,250 $73,250 73.3% 64.3%
Louisiana $76,875 $66,250 73.2% 69.7%
Oklahoma $62,750 $55,000 71.9% 64.7%
New York $138,938 $108,350 68.8% 55.6%
Michigan $60,000 $53,371 66.7% 69.6%
Maryland $112,581 $112,725 66.5% 72.6%
Tennessee $67,750 $63,433 66.3% 67.1%
Iowa $62,000 $46,500 63.9% 43.7%
Arkansas $57,250 $45,900 63.8% 51.0%
Rhode Island $102,500 $94,500 62.1% 61.0%
District of Columbia $222,501 $200,000 61.4% 59.7%
Nebraska $68,000 $57,200 59.1% 50.7%
Virginia $97,000 $90,750 58.8% 63.9%
South Carolina $64,087 $58,648 57.0% 55.9%
Wisconsin $65,500 $42,900 56.5% 36.7%
Alabama $50,300 $50,000 56.1% 63.3%
Indiana $60,281 $58,610 51.1% 58.6%
Massachusetts $110,000 $111,500 47.8% 45.7%
Missouri $56,125 $47,625 47.2% 43.3%
Washington $105,000 $106,975 42.0% 46.5%
Florida $65,350 $58,000 40.9% 38.7%
Minnesota $67,809 $57,711 35.7% 33.9%
Georgia $49,000 $46,000 32.2% 33.3%
North Carolina $51,000 $43,000 32.1% 29.3%
Kansas $60,286 $48,625 31.7% 24.4%
Utah $78,251 $50,894 30.7% 20.4%
Mississippi $42,725 $36,449 29.5% 23.9%
New Mexico $48,276 $34,326 28.5% 18.7%
Oregon $74,000 $65,500 28.5% 27.0%
California $95,000 $95,000 26.8% 27.4%
Colorado $74,950 $71,000 25.0% 25.4%
New Hampshire $58,000 $80,767 25.0% 40.0%
Hawaii $105,000 $92,050 24.7% 23.5%
Wyoming $47,411 $56,250 23.6% 29.0%
Texas $42,600 $35,211 23.5% 20.0%
Alaska $55,564 $39,188 23.3% 15.7%
Montana $59,325 $19,762 23.1% 7.5%
Nevada $48,858 $38,677 21.1% 16.8%
Arizona $43,300 $37,994 19.3% 18.0%
Idaho $38,075 $35,544 14.8% 16.2%

Source: ATTOM Data.

The best and worst markets to flip a house in

If you're looking for the best place to make your next fix-and-flip investment, markets in Ohio and Pennsylvania are the best spots to consider. The two states claimed five of the top 10 spots in terms of ROI at the start of this year, according to ATTOM Data.

Best:

  1. Hickory-Lenoir-Morganton, North Carolina: Q2 2020 ROI 143.3%; gross returns up 74%.
  2. Pittsburgh, Pennsylvania: 135.6% ROI; returns up 2%.
  3. Youngstown-Warren-Boardman, Ohio-Pennsylvania: 125% ROI; returns up 92%.
  4. Springfield, Illinois: 115.1%; returns up 45%.
  5. Chattanooga, Tennessee-Georgia: 105.4% ROI; returns up 91%.
  6. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD: 105.3% ROI; returns up 1%.
  7. Cleveland-Elyria, Ohio: 102.8% ROI; returns up 5%.
  8. Columbus, Georgia-Alabama: 100% ROI; returns down 44%.
  9. Johnson City, Tennessee: 100% ROI; returns up 115%.
  10. Harrisburg-Carlisle, Pennsylvania: 99.4% ROI; returns down 5%.

Worst:

  1. Raleigh, North Carolina: Q2 2020 ROI 11.8%; gross returns down 14%.
  2. Myrtle Beach-Conway-North Myrtle Beach, South Carolina-North Carolina: 12.3% ROI; returns down 69%.
  3. Boise City, Idaho: 15.4% ROI; returns down 6%.
  4. Las Vegas-Henderson-Paradise, Nevada: 18.4% ROI, returns up 21%.
  5. Greeley, Colorado: 18.4% ROI; returns down 29%.
  6. Phoenix-Mesa-Scottsdale, Arizona: 18.9% ROI; returns down 25%.
  7. Provo-Orem, Utah: 19.7% ROI; returns down 21%.
  8. Killeen-Temple, Texas: 20.3% ROI; returns up 57%.
  9. Austin-Round Rock, Texas: 20.8% ROI, returns up 15%.
  10. Lubbock, Texas: 21.2% ROI, returns down 13%.

The bottom line

Statistics aren't everything, but they can give you a good idea of what sort of competition you'll face and what markets to focus your investing efforts in. You should also use them to set expectations for your next flip as well as guide you when making an offer.

If a market offers typically low ROIs, you'll need to work even harder to secure a low price point to get returns. Estimating your rehab costs accurately will be even more important, too.

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