Aspiring house flippers are constantly looking for prime locations where their investments can yield substantial returns, and recent data indicates that certain areas are emerging as house flipping hotspots.
Arizona’s low remodeling costs, high sales figures and 20% return on investment make it the top state for real estate investors looking to maximize profits in a booming housing market, according to a study by Highland Cabinetry.
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“Choosing the best state is based on preference,” says James McAllister, company spokesman. “It is important to realize that the average sales price depends on the investment home flippers. This means that lower remodeling prices are good for home buyers and sellers.”
Top 10 States for House Fins
|
Stands |
The most expensive renovation price |
Cheapest renovation price |
Average renovation price |
Home sales per capita |
Average sales price of a house |
To score |
|
Arizona |
$67,412 |
$60,975 |
$64,194 |
76.8 |
$429,787 |
72 |
|
Florida |
$62,377 |
$55,532 |
$58,954 |
73.6 |
$396,318 |
69.6 |
|
Colorado |
$66,771 |
$61,879 |
$64,325 |
58.5 |
$548,602 |
69.6 |
|
Hawaii |
$84,997 |
$79,934 |
$82,466 |
26.2 |
$856,327 |
69 |
|
Idaho |
$60,531 |
$59,584 |
$60,058 |
64.5 |
$449,952 |
68.3 |
|
North Carolina |
$63,059 |
$58,396 |
$60,728 |
75.7 |
$328,181 |
68 |
|
California |
$93,196 |
$73,567 |
$83,382 |
30.1 |
$782,695 |
67.8 |
|
South Carolina |
$63,132 |
$61,789 |
$62,461 |
77.3 |
$292,948 |
67.3 |
|
Washington |
$75,144 |
$68,962 |
$72,053 |
46.5 |
$588,986 |
66.8 |
|
Tennessee |
$62,913 |
$58,596 |
$60,755 |
72.5 |
$316,473 |
66.4 |
|
National average |
$71,777 |
$63,806 |
$67,791 |
46.9 |
$360,643 |
58.7 |
Source: Highland Cabinetry
According to the US Home Flipping Report 2024 from real estate data provider ATTOM, home flipping activity and profits in the US increased in the first quarter. The report shows that 67,817 single-family homes and condos flipped in the first quarter, accounting for 8.7% or one in 12 home sales nationwide from January through March.
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The latest share of home sales was up from 7.7% in the fourth quarter of 2023, but still down from 9.8% in the first quarter of last year.
The average profit margin in the first quarter remained about 25 percentage points below the 2016 peak. Gross profit rose in typical fashion to $72,375, down from a high of about $80,000 in 2022, but up from $65,000 in the fourth quarter of 2023 and about $10,000 higher than last year’s low.
“The latest figures show that investors still have an uphill climb to realize significant net-of-fees gains,” said Rob Barber, CEO of ATTOM. ‘Like others, they are also facing difficult times amid a housing boom that has cooled over the past year. But we’ve now had a year-long trend showing that things are starting to turn around for the flipping industry, with clear signs of increasing interest flowing into the market.”
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This article This State Is a House Flipper’s Paradise With 20% ROI and Sky-High Sales Rates originally appeared on Benzinga.com
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