If you’re among the millions of HGTV viewers who’ve seen an episode of “Flip or Flop,” you’ve probably thought about the thrill of gutting a house and turning a five- or six-figure profit. But the process isn’t as easy as the professionals on television make it look. Any experienced home flipper would caution you that transforming a fixer-upper into a profitable property is a difficult process.
In other words, don’t get your hands dirty until you’ve learned a thing or two about real estate, construction and how much damage your project could do to your wallet. Breathing new life into a low-cost property won’t necessarily return your full investment and allow you to pocket another $63,500, the average gross flipping profit in Q1 2021. According to RealtyTrac, though, the current homeownership rate is 65.6 percent (down from a high of 69.20 percent in 2004). Current demand for homes is waning after a very strong 2020.
To help you choose the right market to list your masterpiece, WalletHub compared more than 170 U.S. cities across 26 key indicators of market potential, cost and quality of life. Our data set ranges from median purchase price to average full home remodeling costs to real-estate agents per capita.
Main Findings
Best & Worst Cities to Flip Houses
Overall Rank |
City |
Total Score |
Market Potential |
Renovation & Remodeling Costs |
Quality of Life |
---|---|---|---|---|---|
1 | Sioux Falls, SD | 71.37 | 125 | 9 | 32 |
2 | Missoula, MT | 68.21 | 6 | 28 | 57 |
3 | Peoria, AZ | 67.84 | 55 | 11 | 21 |
4 | Nampa, ID | 67.69 | 106 | 4 | 11 |
5 | Tampa, FL | 67.43 | 25 | 25 | 31 |
6 | Mobile, AL | 67.15 | 1 | 21 | 139 |
7 | Boise, ID | 67.09 | 94 | 10 | 10 |
8 | Rapid City, SD | 67.00 | 98 | 12 | 92 |
9 | Gilbert, AZ | 66.90 | 41 | 68 | 2 |
10 | Knoxville, TN | 66.89 | 15 | 15 | 94 |
11 | Billings, MT | 66.23 | 2 | 31 | 97 |
12 | Las Cruces, NM | 66.08 | 95 | 5 | 129 |
13 | Greensboro, NC | 65.93 | 7 | 18 | 108 |
14 | Fort Smith, AR | 65.44 | 28 | 1 | 135 |
15 | Chandler, AZ | 65.24 | 36 | 48 | 14 |
16 | Virginia Beach, VA | 65.16 | 8 | 81 | 18 |
17 | Henderson, NV | 64.71 | 61 | 45 | 9 |
18 | Huntsville, AL | 64.48 | 12 | 56 | 46 |
19 | Oklahoma City, OK | 64.43 | 29 | 19 | 83 |
20 | Des Moines, IA | 64.38 | 64 | 2 | 100 |
21 | Overland Park, KS | 64.01 | 74 | 80 | 1 |
22 | Little Rock, AR | 63.68 | 11 | 6 | 156 |
23 | Glendale, AZ | 63.47 | 54 | 22 | 70 |
24 | Orlando, FL | 62.94 | 35 | 29 | 72 |
25 | Fort Wayne, IN | 62.72 | 76 | 8 | 87 |
26 | Charleston, SC | 62.68 | 34 | 66 | 26 |
27 | Tulsa, OK | 62.32 | 22 | 20 | 133 |
28 | Columbia, SC | 61.81 | 17 | 17 | 152 |
29 | Nashville, TN | 61.73 | 77 | 16 | 82 |
30 | Raleigh, NC | 61.70 | 67 | 47 | 29 |
31 | Cape Coral, FL | 61.30 | 62 | 77 | 7 |
32 | Lincoln, NE | 61.26 | 97 | 46 | 20 |
33 | Laredo, TX | 61.10 | 124 | 43 | 34 |
34 | Tempe, AZ | 61.02 | 50 | 55 | 55 |
35 | Phoenix, AZ | 60.99 | 63 | 26 | 85 |
36 | Las Vegas, NV | 60.75 | 43 | 38 | 90 |
37 | Pembroke Pines, FL | 60.57 | 66 | 72 | 19 |
38 | Spokane, WA | 60.46 | 46 | 51 | 75 |
39 | Cedar Rapids, IA | 60.36 | 60 | 34 | 107 |
40 | Grand Rapids, MI | 60.36 | 75 | 33 | 74 |
41 | Columbus, OH | 60.31 | 40 | 59 | 67 |
42 | Tallahassee, FL | 60.25 | 38 | 37 | 113 |
43 | Scottsdale, AZ | 60.19 | 45 | 115 | 4 |
44 | Montgomery, AL | 60.12 | 18 | 32 | 146 |
45 | Colorado Springs, CO | 59.88 | 87 | 52 | 38 |
46 | Chesapeake, VA | 59.77 | 23 | 89 | 48 |
47 | Jackson, MS | 59.55 | 170 | 3 | 167 |
48 | Austin, TX | 59.53 | 102 | 76 | 15 |
49 | Indianapolis, IN | 59.48 | 13 | 36 | 143 |
50 | Reno, NV | 59.00 | 90 | 64 | 30 |
51 | West Valley City, UT | 58.72 | 110 | 27 | 88 |
52 | Denver, CO | 58.58 | 91 | 61 | 39 |
53 | Shreveport, LA | 58.52 | 24 | 7 | 170 |
54 | Mesa, AZ | 58.36 | 59 | 84 | 44 |
55 | St. Petersburg, FL | 58.23 | 48 | 91 | 35 |
56 | Springfield, MO | 58.11 | 73 | 14 | 148 |
57 | Cincinnati, OH | 58.08 | 21 | 88 | 84 |
58 | Winston-Salem, NC | 57.94 | 33 | 60 | 119 |
59 | Lexington-Fayette, KY | 57.91 | 58 | 82 | 62 |
60 | Charlotte, NC | 57.85 | 44 | 87 | 52 |
61 | Tucson, AZ | 57.80 | 80 | 24 | 123 |
62 | Charleston, WV | 57.70 | 86 | 53 | 130 |
63 | Memphis, TN | 57.43 | 4 | 44 | 169 |
64 | Salt Lake City, UT | 57.32 | 100 | 71 | 36 |
65 | Columbus, GA | 57.20 | 3 | 73 | 165 |
66 | Plano, TX | 57.06 | 79 | 118 | 5 |
67 | Arlington, TX | 56.93 | 120 | 41 | 73 |
68 | North Las Vegas, NV | 56.88 | 65 | 42 | 124 |
69 | Fort Worth, TX | 56.85 | 127 | 54 | 49 |
70 | El Paso, TX | 56.71 | 171 | 13 | 79 |
71 | Kansas City, MO | 56.60 | 107 | 39 | 111 |
72 | Omaha, NE | 56.52 | 99 | 85 | 28 |
73 | Jacksonville, FL | 56.45 | 70 | 70 | 80 |
74 | Louisville, KY | 56.19 | 39 | 63 | 127 |
75 | San Antonio, TX | 55.18 | 145 | 30 | 110 |
76 | Columbia, MD | 55.12 | 26 | 119 | 56 |
77 | Durham, NC | 55.03 | 103 | 78 | 64 |
78 | New Orleans, LA | 54.74 | 32 | 50 | 160 |
79 | Grand Prairie, TX | 54.63 | 129 | 69 | 58 |
80 | Akron, OH | 54.52 | 47 | 58 | 153 |
81 | Norfolk, VA | 54.49 | 19 | 90 | 137 |
82 | Pittsburgh, PA | 54.41 | 31 | 123 | 50 |
83 | Birmingham, AL | 54.25 | 5 | 98 | 154 |
84 | Wichita, KS | 54.05 | 133 | 23 | 138 |
85 | Aurora, CO | 53.95 | 104 | 75 | 91 |
86 | Baton Rouge, LA | 53.89 | 27 | 67 | 159 |
87 | Augusta, GA | 53.58 | 37 | 79 | 151 |
88 | Fort Lauderdale, FL | 53.49 | 85 | 65 | 125 |
89 | Richmond, VA | 53.39 | 42 | 108 | 89 |
90 | Fayetteville, NC | 53.34 | 115 | 40 | 164 |
91 | Salem, OR | 53.22 | 93 | 93 | 71 |
92 | Miami, FL | 53.16 | 69 | 99 | 78 |
93 | Lubbock, TX | 53.06 | 147 | 49 | 116 |
94 | Port St. Lucie, FL | 52.79 | 108 | 96 | 45 |
95 | Modesto, CA | 52.75 | 116 | 62 | 117 |
96 | Madison, WI | 52.71 | 132 | 114 | 13 |
97 | Hialeah, FL | 52.70 | 78 | 94 | 93 |
98 | Newport News, VA | 52.44 | 9 | 112 | 145 |
99 | Sacramento, CA | 52.43 | 119 | 92 | 53 |
100 | Washington, DC | 52.14 | 83 | 113 | 60 |
101 | Rancho Cucamonga, CA | 52.09 | 139 | 105 | 22 |
102 | Chattanooga, TN | 52.08 | 10 | 134 | 114 |
103 | Huntington, WV | 52.04 | 71 | 74 | 148 |
104 | Albuquerque, NM | 52.00 | 153 | 35 | 136 |
105 | Irvine, CA | 51.38 | 123 | 146 | 3 |
106 | St. Paul, MN | 51.21 | 105 | 103 | 68 |
107 | Garland, TX | 51.20 | 137 | 95 | 69 |
108 | Warwick, RI | 50.45 | 101 | 124 | 37 |
109 | Tacoma, WA | 50.29 | 92 | 100 | 112 |
110 | Toledo, OH | 49.87 | 81 | 83 | 150 |
111 | Buffalo, NY | 49.82 | 49 | 116 | 128 |
112 | Detroit, MI | 49.62 | 57 | 86 | 162 |
113 | Corpus Christi, TX | 49.44 | 167 | 57 | 134 |
114 | Fresno, CA | 49.12 | 96 | 117 | 98 |
115 | Seattle, WA | 49.05 | 88 | 154 | 12 |
116 | Cleveland, OH | 48.79 | 30 | 110 | 155 |
117 | Irving, TX | 48.78 | 140 | 122 | 47 |
118 | Milwaukee, WI | 48.77 | 51 | 106 | 147 |
119 | Ontario, CA | 48.29 | 122 | 109 | 81 |
120 | Portland, ME | 48.07 | 117 | 126 | 65 |
121 | Minneapolis, MN | 47.87 | 109 | 131 | 66 |
122 | Rochester, NY | 47.57 | 72 | 97 | 157 |
123 | Philadelphia, PA | 47.40 | 56 | 128 | 131 |
124 | Santa Clarita, CA | 47.09 | 160 | 133 | 23 |
125 | San Diego, CA | 47.04 | 126 | 150 | 17 |
126 | Vancouver, WA | 46.57 | 111 | 132 | 77 |
127 | Dallas, TX | 46.32 | 114 | 129 | 99 |
128 | Baltimore, MD | 46.29 | 68 | 104 | 161 |
129 | Chula Vista, CA | 46.21 | 128 | 142 | 33 |
130 | Riverside, CA | 46.16 | 142 | 120 | 95 |
131 | Nashua, NH | 45.99 | 143 | 144 | 25 |
132 | Manchester, NH | 45.28 | 144 | 125 | 101 |
133 | St. Louis, MO | 45.22 | 14 | 155 | 140 |
134 | Portland, OR | 45.16 | 136 | 145 | 40 |
135 | Atlanta, GA | 45.02 | 52 | 163 | 54 |
136 | Garden Grove, CA | 44.98 | 154 | 137 | 43 |
137 | Worcester, MA | 44.95 | 53 | 148 | 120 |
138 | Amarillo, TX | 44.93 | 172 | 102 | 102 |
139 | Oceanside, CA | 44.90 | 130 | 140 | 51 |
140 | Anchorage, AK | 44.80 | 146 | 107 | 132 |
141 | Providence, RI | 44.46 | 121 | 111 | 142 |
142 | Honolulu, HI | 44.29 | 112 | 152 | 61 |
143 | Houston, TX | 43.56 | 164 | 101 | 141 |
144 | Pearl City, HI | 43.56 | 138 | 147 | 8 |
145 | Moreno Valley, CA | 43.25 | 151 | 130 | 106 |
146 | Bakersfield, CA | 43.18 | 84 | 143 | 122 |
147 | Anaheim, CA | 42.87 | 149 | 138 | 96 |
148 | Aurora, IL | 42.79 | 131 | 149 | 76 |
149 | Fontana, CA | 42.78 | 156 | 136 | 104 |
150 | Huntington Beach, CA | 42.45 | 155 | 159 | 16 |
151 | Stockton, CA | 42.17 | 141 | 121 | 144 |
152 | Long Beach, CA | 42.04 | 158 | 141 | 86 |
153 | Dover, DE | 41.89 | 20 | 135 | 166 |
154 | Santa Ana, CA | 41.43 | 163 | 139 | 105 |
155 | Glendale, CA | 41.14 | 157 | 156 | 59 |
156 | San Jose, CA | 40.74 | 118 | 167 | 24 |
157 | Santa Rosa, CA | 40.50 | 168 | 158 | 41 |
158 | Chicago, IL | 40.28 | 113 | 151 | 126 |
159 | San Bernardino, CA | 39.76 | 148 | 127 | 158 |
160 | Boston, MA | 38.44 | 135 | 168 | 42 |
161 | Fremont, CA | 38.30 | 150 | 171 | 6 |
162 | New Haven, CT | 37.66 | 82 | 153 | 168 |
163 | Oxnard, CA | 37.49 | 161 | 157 | 115 |
164 | Wilmington, DE | 37.43 | 16 | 162 | 172 |
165 | Jersey City, NJ | 37.16 | 159 | 165 | 63 |
166 | New York, NY | 35.90 | 134 | 166 | 103 |
167 | Los Angeles, CA | 35.10 | 165 | 160 | 118 |
168 | Bridgeport, CT | 32.80 | 89 | 161 | 171 |
169 | San Francisco, CA | 31.86 | 169 | 172 | 27 |
170 | Yonkers, NY | 31.58 | 162 | 169 | 109 |
171 | Oakland, CA | 31.25 | 152 | 170 | 121 |
172 | Newark, NJ | 29.10 | 166 | 164 | 163 |
Note: With the exception of “Total Score”, all of the columns in the table above depict the relative rank of that city, where a rank of 1 represents the best conditions for that metric category.
Ask the Experts
Flipping houses can be a tricky business, especially for novices. For insight on the house-flipping market and advice on choosing a good property, we asked a panel of housing and real-estate experts to weigh in on the following key questions:
- What are the most common mistakes people make when trying to flip a house?
- What is the best way to finance a flip? Should people try to go all cash or borrow?
- What types of people are typically well-suited for engaging in house flipping?
- What factors — financial and otherwise — should go into the decision of whether a house is a good candidate to be flipped?
- Is house flipping a contributing factor to the overheating of some real-estate markets? Should this type of business be more regulated?
Ask the Experts
Founder & Principal Petersgroup Consulting and Professor of Real Estate and Urbanism, School of Law – Seattle University
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Professor, Department of Economics, Trinity College of Arts and Sciences – Duke University
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Professor, Finance, Law, and Real Estate, College of Business & Economics – California State University, Los Angeles
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Ph.D., FRICS – Interim Dean, FIU College of Business; Associate Dean, Chapman Graduate School; Professor of Finance and Real Estate; Knight Ridder Endowed Eminent Scholar Chair; Tibor and Sheila Hollo Research Fellow; Co-Editor, Journal of Real Estate Research – Florida International University
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M.S. – Lecturer / REPM Ambassador, Hospitality & Tourism – University of Wisconsin-Stout
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Ph.D. – Assistant Professor of Finance, Lutgert College of Business – Florida Gulf Coast University
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Methodology
In order to determine the best and worst cities to flip houses, WalletHub compared 172 cities — including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state, except for the cases where data limitation existed — across three key dimensions: 1) Market Potential, 2) Renovation & Remodeling Costs and 3) Quality of Life.
We evaluated those dimensions using 26 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for house flipping.
Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area.
For context, “home flipping” is a real-estate term for buying a property with the purpose of reselling it for a profit, which is generated through appreciation of the home’s value or repairs and renovations.
Market Potential – Total Points: 35
- Average Gross Return on Investment (ROI): Triple Weight (~7.50 Points)
- Change in Gross ROI of Flipped Homes (2020 vs. 2019): Full Weight (~2.50 Points)
- Median Purchase Price: Full Weight (~2.50 Points)
- Share of Home Flips: Full Weight (~2.50 Points)
- Average Days to Flip: Full Weight (~2.50 Points)
- Average Ratio of Sale Price to List Price: Full Weight (~2.50 Points)
- Real-Estate Agents per Capita: Full Weight (~2.50 Points)
- Mortgage Lenders per Capita: Full Weight (~2.50 Points)
- Real-Estate Tax Rate: Full Weight (~2.50 Points)
Note: This metric was calculated as follows: Median Real-Estate Tax / Median House Price. - Share of Flips Sold to Cash Buyers: Full Weight (~2.50 Points)
- Share of Flips Sold to FHA Buyers: Full Weight (~2.50 Points)
- Median Year Built: Full Weight (~2.50 Points)
Renovation & Remodeling Costs – Total Points: 35
- Average Kitchen Remodeling Costs: Full Weight (~8.75 Points)
- Average Bathroom Remodeling Costs: Full Weight (~8.75 Points)
- Average Full Home Remodeling Costs: Full Weight (~8.75 Points)
- Median Construction-Worker Salary: Full Weight (~8.75 Points)
Note: “Construction Worker” includes plumbers, electricians, carpenters, etc.
Quality of Life – Total Points: 30
- Crime Rate: Full Weight (~3.00 Points)
- Perception of Safety (Safety walking alone during daylight/night): Full Weight (~3.00 Points)
Note: These data are based on perceptions of visitors of Numbeo website in the past 3 years. If the value is 0, it means it is perceived as very low, and if the value is 100, it means it is perceived as very high. - K–12 School-System Quality: Full Weight (~3.00 Points)
Note: This metric measures the share of public schools rated by GreatSchools.org with above average score. - Share of Population with Walkable Park Access: Full Weight (~3.00 Points)
- Family-Friendliness: Full Weight (~3.00 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities for Families” ranking. - Annual Job-Growth Rate: Full Weight (~3.00 Points)
- Unemployment Rate: Full Weight (~3.00 Points)
- Median Salary: Full Weight (~3.00 Points)
Note: This metric was adjusted for cost of living. - Median Credit Score: Full Weight (~3.00 Points)
- Pace of Economic Growth: Full Weight (~3.00 Points)
Note: This metric is based on WalletHub’s “Fastest-Growing Cities” ranking.
Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, ATTOM Data Solutions (RealtyTrac), Zillow, Houzz, Federal Bureau of Investigation, U.S. Department of Housing and Urban Development, GreatSchools.org, The Trust for Public Land, Council for Community and Economic Research, Numbeo, TransUnion and WalletHub research.