The home flipping market is stabilizing in 2026 after recent volatility. According to the latest ResiClub and LendingOne survey, investor demand remains steady, but tighter margins and higher rates mean success now depends on disciplined underwriting, efficient execution, and flexible strategies like build-to-rent.
The home flipping market has gone through a meaningful reset over the past few years. After the rapid run-up in 2020 and 2021—and the correction that followed as interest rates climbed—the industry is entering 2026 on more stable ground.
A recent Q1 2026 Home Flipper Survey from ResiClub, conducted in partnership with LendingOne, helps highlight the feelings of flippers in the housing market. The market today isn’t being driven by fast appreciation or easy wins. Instead, it’s defined by discipline, consistency, and the ability to consistently drive returns.
A Market That’s Stabilizing
Activity has normalized, but investors are doing more of the work
After the sharp pullback in 2022—the largest since the housing crash—flipping activity has settled back to the much more familiar pre-pandemic levels. In other words, the market is stable. It’s just not doing the heavy lifting for investors.
That shift shows up clearly in how investors are feeling. About 53% of flippers still describe their local market as strong, and roughly 75% expect solid buyer demand over the next year. Even more telling, 90% say they plan to complete at least one deal in the next 12 months. People are still in the game.
At the same time, expectations have become more grounded. In the survey most investors had a positive outlook, with 58% of investors projecting that conditions will stay about the same this year, while another 29% expect improvement. Only a small minority see things getting worse, and that number has been trending downward. It’s not a bullish frenzy, but uncertainty in the house flipping market is on the decline.
Margins, Execution, and the Shift to Flexibility
Lower margins are pushing investors to operate more strategically
Even as the market has stabilized, the way you make money in it has changed.
Margins are tighter than they were a few years ago, and deals don’t have the same cushion. Days on market are longer, holding costs are higher, and small mistakes are harder to recover from. As a result, investors are operating with a lot more precision—on purchase price, on renovation scope, and especially on timing.
That pressure is also changing how people think about exits. More than half of flippers, about 52%, say they’re planning to convert at least some projects into rentals instead of selling right away. That’s a meaningful shift from the all-in flipping mindset of the pandemic era.
It’s not just about chasing appreciation anymore. It’s about having options. If the resale market softens or timelines stretch, being able to hold and generate cash flow can make the difference between a good deal and a bad one.
Where Deals Are Won (and Lost)
Speed, timelines, and holding costs are now the biggest drivers of returns
What’s interesting is that the biggest challenges today aren’t really about finding deals, they’re about finishing them well.
The sale phase has become the most common source of delays, accounting for roughly 30% of timeline issues. Construction and acquisition still matter, but getting a property sold quickly, and at the right price, is increasingly where deals succeed or fall apart.
That’s why holding costs have become such a focus. In the survey, 56% of investors said lowering holding costs would have the biggest impact on improving returns. Not finding more deals. Not even improving sale prices. Just moving faster and more efficiently.
Financing plays directly into that. Most investors aren’t increasing leverage—61% say they’re holding steady, and 21% are actually pulling back—but they are placing more importance on who they borrow from. Speed and certainty of closing now rank alongside interest rates as top priorities.
The Bottom Line
A market that rewards execution over momentum
The latest ResiClub and LendingOne data paints a clear picture. The home flipping market isn’t as easy as it once was, but it has found its footing.
This is a more disciplined, execution-driven environment. Demand is still there. Deals still work. But they work for the investors who get the details right—who buy well, manage costs, move quickly, and stay flexible when conditions shift.
At CoFi, we see this as a return to fundamentals. And in a market like this, having the right strategy (and the right capital partner) can make all the difference.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a commitment to lend, or a guarantee of specific loan terms. Actual rates, terms, and approvals depend on individual borrower qualifications, project characteristics, and market conditions.
