House flipping is a flop for NYC neighborhoods
NYC House Flipping Trends
A flip occurs when a property is sold on the market twice in less than a year. Click on a point to see more information about a flip.
We define a flip as a property that is bought and sold in an arm’s length transactions within a 12-month period. An arm’s length transaction is a sale that occurs via the market and not between actors who are related or otherwise inclined to carry out transactions at non-market prices. The analysis focuses on 1-4 unit homes and excludes condominium and co-op sales for consistency and to maintain the integrity of our data for comparisons across years and neighborhoods.
Profit: Also known as gross return or return on investment, profit is the difference between the price at which a property was bought and the price at which it was sold divided by the initial purchase price. The median profit per flip is the median of gross returns for all flips within a given neighborhood or year. This measure does not account for renovation expenditures by the flipper.
Our data, which includes sales from 2003 to 2015, is drawn from the City Department of Finance’s annualized sales data. Neighborhood boundaries are derived from the same source. We filtered out transactions that were not at arm’s length (for example, the sale of a property from parent to child). We excluded sales for less than $100,000 and those properties that were bought and sold within five days.
We use medians rather than averages to dull the influence of outliers in the data and give more accurate comparisons between neighborhoods and years.
The year of the flip is defined as the year in which the resale occurred. So if a property was purchased in December 2014 and sold again in February 2015, it is described as a 2015 flip.
Finally, all dollar amounts have been adjusted for inflation to reflect 2015 dollars so that we can compare changes in flip profitability across time.
New York City since 2003.