Home flipping profits plummet in San Antonio area
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The San Antonio metro area saw some of the weakest house-flipping profit margins last year, according to a recent report from real estate data company ATTOM.
Why it matters: Flipped houses made up about 11% of the home sales last year in the San Antonio-New Braunfels metro as investors look to profit.
- The renovated homes can help stabilize neighborhoods but can also help fuel resident displacement.
By the numbers: Four Texas metros — San Antonio ($12,289 profit), Dallas ($14,817 profit), Houston ($16,932 profit) and Austin ($18,640 loss) — were among the weakest home-flip returns in the country among metros with a population of 1 million or more, according to ATTOM.
- San Antonio home-flip profit margins were down from an 11.7% profit in 2022 to a 5% profit in 2023.
Between the lines: Flipping rates are still up 93% from a decade ago, and 27.8% from five years ago, ATTOM data show.
The big picture: In 2023, house-flipping activity nationwide dropped 29.3%, the biggest annual decline since 2008, ATTOM found.
- Return on investment, at 27.5%, hasn't been this bad since 2007. The ROI was down from 28.1% in 2022 and 35.7% in 2021.
The bottom line: Our cooling housing market makes it difficult for flippers to make a profit.