Buffalo house flippers pulled a 76 percent profit margin in the second quarter
Buffalo house flippers cleared a typical gross profit of 111,000 dollars last quarter.
The short version
- That gave them a 76 percent margin that ranked second among major US metros.
- Nationally, flipping profits slid as a cooling housing market cut returns across the country.
House flippers in Buffalo are bucking a national slowdown with some of the highest returns in the country. According to second-quarter data from ATTOM, a property data provider, Buffalo flippers pulled a typical gross profit of $111,000, translating to a 76.6 percent profit margin.
That performance trailed only Pittsburgh, where flippers posted an 81.5 percent margin, and left major Texas markets in the dust. The gross profit figure reflects the gap between a property's purchase price and its eventual resale price, though it does not account for renovation costs or other expenses.
Buffalo's strong showing stands in sharp contrast to a cooling national market. Across the country, the typical flipping profit margin fell to 21.5 percent in the second quarter, down from 27.6 percent a year earlier, while the typical gross profit slid to $60,526.
Meanwhile, Texas markets struggled badly, with Dallas, Austin, and Houston posting margins below 4 percent, and San Antonio flippers taking an outright loss. Redfin, a residential real estate brokerage, reported that sellers outnumbered buyers by 131 percent in Houston in August, showing a market swinging toward buyers.
In Buffalo, the median home sale price sat around $233,000 in September, roughly 42 percent below the national average, with nearly 60 percent of homes selling above asking price as remote workers and professionals relocate to the region. ATTOM CEO Rob Barber noted that the trend reflects a market still rewarding investors, just less generously than before.
For local builders and contractors eyeing the Upstate New York market, the numbers show that affordable housing stock is still delivering big margins for those willing to take on a renovation project.
