Home flipping remains one of the most profitable investment strategies with the fix and flip market continuing to generate spectacular returns. In 2024, the average fix and flip home produced a $66,000 profit and 30.4% return on investment (ROI). As we embark on the 2025 year, all signs indicate yet another bullish year for the fix and flip market.
However, housing market demographics, demand, and hotspots continue to evolve. In order for investors to triumph in 2025, they must stay on top of the latest fix and flip market updates and house flip trends to identify the best fix and flip markets and develop a successful house flipping business plan. Below, we’ll discuss the most significant changes among today’s homebuyers, including the latest consumer demands and the best places to invest in fix and flip homes in 2025.
However, housing market demographics, demand, and hotspots continue to evolve. In order for investors to triumph in 2025, they must stay on top of the latest fix and flip market updates and house flip trends to identify the best fix and flip markets and develop a successful house flipping business plan. Below, we’ll discuss the most significant changes among today’s homebuyers, including the latest consumer demands and the best places to invest in fix and flip homes in 2025.
A Shift in Homebuyer Demographics
Entering 2025, fix and flip investors must be mindful of the demographic shifts among homebuyers, with Gen Zers taking center stage. However, it’s not entirely “out with the old, in with the new.”
The Ongoing Demand for “Green Living”
Like Millenials, the latest consumer generation continues to echo the importance of sustainability. For home flippers looking for renovation ideas that will skyrocket their property’s resale value, taking a green approach can be one way to attract young homebuyers.
Some of the top “green living” renovations flippers can implement include:
Some of the top “green living” renovations flippers can implement include:
- Installing LED lighting and Energy Star appliances
- Replacing old entry doors and windows
- Adding solar panels
- Installing a tankless water heater
- Building with sustainable materials
While these green renovations may create higher upfront costs for investors, they generate extremely high ROIs while catching the eyes of today’s most sought-after consumers.
A Newfound Emphasis on Affordability
For Gen Zers and Millenials, affordability and practicality have become the top priorities during the home shopping process. This is likely exacerbated by ongoing inflation. With this newfound emphasis on affordability, several key trends have emerged within the fix and flip home selling market, including:
- Smaller Homes: Gen Z consumers are drawn to smaller, more affordable homes with less maintenance and financial burden.
- Suburban Markets: Investors looking for homes to flip may want to venture outside metropolitan areas. Entering 2025, more and more homebuyers are turning to suburban or even secondary markets to find homes.
- Shared Spaces: The desire for affordability has generated a renewed interest in shared spaces among home shoppers. Designing fix and flip homes with additional accessory dwelling units (ADUs) to provide co-living or rentable space options for homebuyers can quickly increase the desirability and profitability of your investment.
These new trends create opportunities for investors to find highly profitable fix and flip home investments at better prices, with less square footage and within less costly markets. Additionally, with the right financing, implementing demographic demands for co-living and green living amenities will significantly boost overall profits and ROI potential.
The Best Fix and Flip Markets in 2025
Discovering profitable fix and flip markets will help you make wise financial decisions in 2025. There are several economic factors to look for in high-performing, low-risk markets, including:
- Job Growth: A thriving job market attracts consumers into a city’s rental and homebuying markets.
- Economic Stability: A bustling economy mitigates risks of sudden, unexpected downturns.
- Affordable Housing: Now more than ever, finding affordable markets is essential for home flippers.
- Property Appreciation: Markets where home values are continuing to grow are fundamental. Home appreciation indicates economic strength and ongoing market growth.
While interest in suburban and secondary markets creates unique fix and flip market investment opportunities, finding suburbs and secondary markets with growth indicators that are within reach of growing economies will be essential for fix and flip investors moving forward.
With that, let’s look at the top 3 fix and flip markets in 2025:
With that, let’s look at the top 3 fix and flip markets in 2025:
1. Tacoma, Washington
Tacoma is quickly becoming a sanctuary for homebuyers who have been priced out of nearby Seattle. Housing demand has begun to skyrocket, with year-over-year (YoY) home appreciation rates well above national averages (6.2%).
For buyers, Tacoma’s proximity to Seattle makes it a coveted location, with access to the Seattle job market without the high costs of living. The city’s natural amenities, with lush pines and waterfront access, continue to drive up consumer appeal, along with below-average home prices.
For buyers, Tacoma’s proximity to Seattle makes it a coveted location, with access to the Seattle job market without the high costs of living. The city’s natural amenities, with lush pines and waterfront access, continue to drive up consumer appeal, along with below-average home prices.
2. Riverside & San Bernardino, California
Known as the Inland Empire, Riverside and San Bernardino have seen an uptick in housing demand. Located outside of Los Angeles, these cities are rich with older homes that are priced at well below market value–making it a powder keg for the fix and flip market and its investors.
For homebuyers, the Inland Empire’s geographical location gives residents access to LA’s biggest attractions and nightlife as long as they are willing to commute. As this region continues to grow, strategic and highly desired fix and flip home renovations will lead to substantial returns for investors.
For homebuyers, the Inland Empire’s geographical location gives residents access to LA’s biggest attractions and nightlife as long as they are willing to commute. As this region continues to grow, strategic and highly desired fix and flip home renovations will lead to substantial returns for investors.
3. Akron, Ohio
Akron is quickly gaining consumer attention due to its low cost of living, safe environments, and higher education opportunities. Akron’s housing costs remain below national averages, and well below larger metropolitan areas in Ohio such as Cleveland and Cincinnati.
Most importantly, the city is committed to revitalizing its downtown and surrounding neighborhoods. Due to this, they are welcoming new build and fix and flip home investors. The city’s efforts to enhance public infrastructure and expand its green spaces will undoubtedly increase consumer demands in 2025 and beyond.
Most importantly, the city is committed to revitalizing its downtown and surrounding neighborhoods. Due to this, they are welcoming new build and fix and flip home investors. The city’s efforts to enhance public infrastructure and expand its green spaces will undoubtedly increase consumer demands in 2025 and beyond.
Finance of America Commercial: Financing Fix and Flip Market Success
Nothing is more important to a successful house flipping business plan and strategy than dependable and accessible financing. Finance of America Commercial (FACo) offers the most reliable fix and flip mortgage loan options on the market. With flexible terms and rates, our team can tailor the ideal loan option to meet the unique needs of your fix and flip project and protect you from the unexpected.
FACo’s Fix and Flip financing provides:
FACo’s Fix and Flip financing provides:
- Flexible short-term options
- Coverage of up to 100% of renovation expenses
- Up to 90% LTC and up to 75% ARLTV
- Extensive rehab financing for larger fix and flip projects
If you’re ready to reap the financial benefits of the fix and flip investment market, let our team of industry experts provide the financial and industry insights you need to succeed. CLICK HERE to schedule a FREE consultation with a FACo team member today!
