Found 2 blog entries tagged as profitability.

Austin Business Journal reports, "Home flippers are seeing their profits shrink dramatically, plummeting to the lowest point in years.

The latest report from ATTOM, which provides property data and analytics, found that home flippers netted a 25.1% return on investment before expenses in the second quarter, the lowest margin ATTOM has recorded since the second quarter of 2008. It's also down from a high point of a 62.9% in fall 2012.

Gross profit, the difference between what a flipper paid for a property and what they sold it for, also has dropped. The typical flipped home netted $65,300 in the second quarter, about 4% less than the first quarter and 13.6% less than the second quarter of 2024.

The culprit? High home prices that push flippers…

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Hoodline Austin writes, "As rents across Austin experience an unexpected dip, the city is witnessing a shift, where rent decreases have ushered in a slowed momentum for new apartment constructions, revealed data from Realtor.com and insights from local experts. Rents in Austin have seen a near 10% reduction from May 2023 to May 2024, with average rent for small to medium apartments at $1,400, while the national median stood at $1,700, as noted by KVUE.

After a substantial uptick in rental prices, due in part to an influx of residents and low pandemic-era interest rates, construction boomed, yet this surge is tapering off as building costs increase alongside interest rates and market profitability becomes less certain, a situation underscored by a…

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