The Phoenix Fix & Flip Market: Is It Still Worth It in 2025?

[Stepan Hedz]

Hello, everyone,

Phoenix has been the premium market for fix & flip investors, but is it that profitable in today's times since the change of market conditions? A few influencing factors will sum up the drive of today's landscape:

Inventory & Competition:

Although inventory levels have risen some, competition on good deals still seems fierce. Off-market and direct-to-seller appear the best avenue toward decent margins.

Pricing & ARVs:

Home values in many areas are holding their own, but buyers are getting pickier. Renovations that truly add value-like modern kitchens, open floor plans, and energy-efficient upgrades are making the difference in selling faster and at top dollar.

Financing & Interest Rates:

The higher cost of borrowing has made tight budgeting more important than ever. Many investors are adjusting by using more cash or creative financing strategies to maintain profitability.

Renovation Costs:

While labor and material costs have somewhat stabilized, smart budgeting and working with reliable contractors are still crucial for keeping timelines and profits in check.

How has your strategy changed for those currently flipping in Phoenix? Are you moving to different neighborhoods, changing your renovation budgets, or holding properties longer?