TAMPA, Fla. — A recent study by ATTOM Data reveals that profits from house flipping have decreased to the lowest level since the housing crisis of 2008. The decline is estimated at 29.3%. In Florida, the average return on investment for a house flip was $64,675 last year.

When Nicole Perry decided to enter the house-flipping business, she chose Ybor City, one of several neighbourhoods in Tampa that are experiencing growth through redevelopment.

She started purchasing homes that were in distressed conditions, renovating them, and then selling them for a profit.

“Years ago, everything was flying off the market,” Perry said. It’s been three years since she started house flipping and the market has slowed down significantly.

“The turnover was a lot quicker, which, as a person who renovates homes, you don’t want to hold on to the home too long. Otherwise, you’re paying a lot of money in mortgages and interest and fees,” said Perry.

Perry is not alone.

According to a report by ATTOM Data, investor flipping activity declined by the fastest pace in 15 years. The average gross profit for house flipping in 2023 was $66,000, and the average return on investment was 27.5%.

Perry is currently renovating a three-bedroom, 900-square-foot home located at 2505 N. 12th Street.

A second home located at 2509 E. 12th Avenue has been completed and is still on the market.

“This home has been on the market for 30 days,” said Perry.

Perry says that inflation and the rising cost of materials have slowed down her renovation efforts. She understands that this is a process where she can’t cut corners.

According to the National Association of Home Builders, although prices remain high, the increase in material costs for residential construction slowed down in 2023.

“I want them [buyer] to have a house that is functional, beautiful and makes sense,” she said.