House flipping has become increasingly popular over the last few years. In 2017, just 5.7% of all home sales were flips. By the outset quarter of 2020, that share jumped to 7.5%. Even so, it appears that the pace slowed by the end of 2020, shrinking to five.9%.

The popularity of flipping shows such as HGTV'sFixer Upper andFlip or Flop probably has something to do with it. Growing involvement from millennials doesn't hurt, either.

Are you thinking well-nigh getting into the fix-and-flip game? Simply want guidance on where to do your next flip? Here are more essential flipping stats to take on your radar for 2021.

Nationwide stats: ROIs, flipping rates, and more

Nationally, flipping activity was on the rise in 2020. The first quarter of 2022 marked the highest level of habitation flips since early 2006 and a nearly two-pct-point bound over the last three years.

House flips as a percentage of all home sales

House flipping has been rising in popularity -- only how popular is it? The United States unremarkably sees between v and 6 one thousand thousand homes sold per year. Hither's how many of them are flips:

Popular as it is, house flipping started becoming less profitable. In fact, 2022 marked the lowest boilerplate home-flipping return since 2011. In the first quarter of 2020, returns dropped in 54% of all U.S. markets, with the boilerplate flip bringing in just over $62,000.

Business firm flipping gross profit and ROI

Business firm flipping is on the rising, and profits show they're following the up tendency. The slight subtract in ROI betwixt 2022 and 2022 is minimal compared to the stark declines seen in 2022 through the present. The typical house flipping return has declined for the third straight yr due to median resale prices ascent more than slowly in 2022 than when investors were buying properties.

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

Share of flips purchased with financing:

  • 2020: 41.7%
  • 2019: 42.3%
  • 2018: 41.8%
  • 2017: 42.ix%

Share of flips purchased with all greenbacks:

  • 2020: 58.3%
  • 2019: 57.7%
  • 2018: 58.2%
  • 2017: 57.one%

Home-flipping returns by country

Pennsylvania came in with the most meaning gross return on investment (ROI) in 2020. The average fix-and-flip investor there received 92.6% ROI. Idaho investors had information technology the worst, with a mere 15.half dozen% ROI for the same time. Investors in Arizona, Nevada, Montana, Alaska, Texas, Wyoming, and Hawaii didn't reap many rewards either; all states had average ROIs under 25%.

State Gross turn a profit, 2020 Gross profit, 2019 ROI, 2020 ROI, 2019
Alabama $51,226 $49,238 58.half-dozen% 62.six%
Arizona $48,225 $37,400 21.1% 17.6%
Arkansas $49,077 $55,000 52.v% 68.8%
California $105,000 $95,000 27.8% 27.1%
Colorado $68,000 $63,200 21.5% 22.iv%
Connecticut $115,000 $90,000 82.i% 66.7%
Delaware $90,500 $92,565 73.2% 81.5%
District of Columbia $225,000 $201,520 63.4% 57.9%
Florida $66,000 $59,000 forty.2% 39.6%
Georgia $51,000 $46,400 35.2% 34.1%
Hawaii $88,750 $95,000 19.9% 23.2%
Idaho $39,626 $33,000 xv.6% 15.2%
Illinois $82,500 $74,900 75% 68.vii%
Indiana $62,890 $63,438 62.nine% 74.half-dozen%
Iowa $53,750 $47,500 51.two% 47.5%
Kansas $41,770 $45,308 nineteen.seven% 25.3%
Kentucky $67,500 $57,300 73% threescore.2%
Louisiana $69,950 $68,315 70% 74.three%
Maryland $114,000 $107,000 68.seven% 69%
Massachusetts $110,000 $109,000 45.8% 47.iv%
Michigan $sixty,350 $52,500 71.eight% seventy%
Minnesota $65,000 $59,500 34.2% 35.four%
Mississippi $37,769 $58,533 24.9% 41.9%
Missouri $55,000 $48,000 47.8% 44.9%
Montana $61,316 $44,375 24.7% 18.1%
Nebraska $55,000 $50,000 44.vii% 45.5%
Nevada $fifty,000 $39,500 21.3% 17.1%
New Hampshire $70,000 $77,933 31.8% 39.8%
New Bailiwick of jersey $125,000 $110,000 76.two% 73.three%
New Mexico $43,442 $twoscore,000 23.v% 22.9%
New York $131,000 $110,000 62.four% 57.9%
North Carolina $50,750 $46,000 32.7% 31.9%
Ohio $65,900 $57,000 86.ane% 79.ii%
Oklahoma $58,250 $52,000 64.seven% 62.7%
Oregon $75,000 $67,000 27.9% 27.9%
Pennsylvania $87,950 $84,900 92.6% 99.nine%
Rhode Island $107,000 $84,500 64.8% 53.5%
South Carolina $61,445 $60,300 53.2% 58.7%
Tennessee $70,000 $63,100 70% 66.four%
Texas $39,875 $33,622 21.half-dozen% nineteen%
Utah $72,994 $65,313 26.v% 26.8%
Virginia $97,000 $97,000 63.four% 69.8%
Washington $109,900 $105,000 42.3% 46.7%
Due west Virginia $62,400 $55,000 69.iii% 64.vii%
Wisconsin $56,825 $49,500 50.iii% 47.1%
Wyoming $48,448 $54,525 22.4% 30.4%

Data source: ATTOM Information (2021).

The best and worst markets for house flipping

If you're looking for the all-time identify to make your side by side prepare-and-flip investment, markets in Ohio and Pennsylvania are the all-time spots to consider. The two states claimed v of the tiptop ten sites in terms of ROI at the outset of this year, co-ordinate to ATTOM Information. The methodology behind the choices takes heavily under consideration the return on investment for 2020, in add-on to factoring in percent change in gross ROI.

Best:

  1. Scranton-Wilkes-Barre-Hazelton, Pennsylvania: 2020 ROI 135.eight%; gross returns downwards three%.
  2. Pittsburgh, Pennsylvania: 128.i% ROI; returns downwards iv%.
  3. Hickory-Lenoir-Morganton, Due north Carolina: 124.6% ROI; returns up 64%.
  4. Macon, Georgia: 115.7% ROI; returns up 188%.
  5. Philadelphia-Camden-Wilmington, PA-NJ-DE-Doc: 107.two% ROI; returns up 7%.
  6. Davenport-Moline-Rock Island, IA-IL: 106.2% ROI; returns up 32%.
  7. Reading, Pennsylvania: 105.iii% ROI; returns upwards sixteen%.
  8. Norwich-New London, Connecticut: 99.2% ROI; returns up 7%.
  9. Cleveland-Elyria, Ohio: 98.v% ROI; returns downwardly nine%.
  10. Spartanburg, South Carolina: 94.6% ROI; returns upwardly 20%.

Worst:

  1. Laredo, Texas: 2020 ROI -4.nine%; gross returns downward 145%.
  2. Santa Maria-Santa Barbara, California: 1.half-dozen% ROI; returns down 91%.
  3. Gulfport-Biloxi-Pascagoula, Mississippi: 12.nine% ROI; returns downward 57%.
  4. Greeley, Colorado: 13.iii% ROI, returns downward 56%.
  5. Raleigh, N Carolina: thirteen.6% ROI; returns up 25%.
  6. Boulder, Colorado: xiv.three% ROI; returns down six%.
  7. Amarillo, Texas: 16.5% ROI; returns down 38%.
  8. Fort Collins, Colorado: xviii.vii% ROI; returns down 3%.
  9. Las Vegas-Henderson-Paradise, Nevada: 19.v% ROI, returns upwards 32%.
  10. Lubbock, Texas: 20.1% ROI, returns down 25%.

The bottom line

Statistics aren't everything, simply they tin give y'all a good idea of what sort of contest you'll face up and what markets to focus your investing efforts in. You should also use them to set expectations for your next flip and 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 bespeak to get returns. Estimating your rehab costs accurately volition be even more critical, as well.