The Flip Squeeze: Why Home Renovation Profits Are Drying Up

House flipping profits just hit their lowest level since 2008, with margins down to 25%. Tim Lucas and Craig Berry dig into how tariffs, labor shortages, and rising material costs are reshaping the renovation industry—and what it means for home affordability.In this episode you’ll learn:The new reality: Median flip purchase prices at $259,700, but rising tariffs and competition are cutting into returns.Tariff trouble: Cabinet tariffs jumping from 25% to 50%, and Canadian lumber from 14.5% to 34.5%, driving costs up for every remodel.Labor crunch: Up to 1.5 million construction workers could be lost to deportations, hitting states like California, Texas, and Florida hardest.Who survives: Small, hands-on flippers may weather the storm better than large-scale investors reliant on contractors.The road ahead: Expect innovation—prefab, modular builds, even 3D printing—as the industry adapts to higher costs and fewer workers.Read the full article:https://www.mortgageresearch.com/articles/home-flipping-getting-tougher/