The latest John Burns Research & Consulting (JBREC) + Kiavi Fix-and-Flip Survey is here, and it’s packed with the insights you can use right now. With some homes staying on the market longer, labor costs rising, and workforce shortages, the fix-and-flip market is facing some tough challenges. But don’t worry—smart real estate investors (REIs) are finding ways to adapt and continue to thrive. 

Want to know how they’re doing it? We’ve got the data to help you uncover new opportunities and refine your investment strategy for long-term success. Let’s dive in and get you ahead of the competition!

What is the JBREC + Kiavi Fix-and-Flip Survey?

The JBREC + Kiavi Fix-and-Flip Survey is the industry's most comprehensive quarterly analysis of fix-and-flip fundamentals. Surveying approximately 400 active REIs nationwide, this survey provides unfiltered insights into market conditions, cost trends, and real estate investor sentiment.

The survey's credibility stems from its rigorous methodology and diverse participant base, spanning all major markets from high-cost coastal regions to affordable Midwest markets. This broad representation ensures that the survey findings reflect real market conditions rather than isolated regional trends.

The Burns + Kiavi Fix and Flip Market Index (FFMI) is the survey’s cornerstone metric and measures overall market health on a 0-100 scale:

• Above 50: Indicates market expansion.  
• Below 50: Signals market contraction.  

In Q2 2025, the FFMI score was 57, as it was an average of the following three categories:

• Current flipped home sales activity: 56 (stronger than normal)
• Expected flipped home sales activity in the next 6 months: 57 (good)
• Current availability of pre-flip homes to purchase index: 59 (indicating more competition for deals) 

Key Finding 1: Days-on-Market Are Increasing 

This quarter's survey reveals a stark reality: 53% of real estate investors nationally reported increased days-on-market for their Q2 2025 listings compared to the previous quarter. This represents a shift from the rapid-sale environment many REIs had become accustomed to during the pandemic boom. 

How Regions Differ for Days-On-Market 

Try not to panic, the impact isn't uniform across all markets. Flippers in the Southwest, Florida, and Texas are experiencing the most dramatic increases, with over 60% reporting longer sale times. Meanwhile, Midwest and Northeast markets are showing more stability. 

How to Respond to Longer Sales Cycles 

1. Price Aggressively from Day One: The survey data shows that REIs who adjust their pricing expectations early could perform better than those who chase the market down. Consider aggressive pricing using comparable properties to generate immediate interest. 
2. Focus on Quality Over Speed: With longer marketing periods, property presentation becomes crucial. Consider investing in professional staging and high-quality photography. This quarter's JBREC + Kiavi survey indicates that flips with superior finishes are continuing to move faster than average renovations. 
3. Expand Your Marketing Reach: Longer days-on-market could require broader marketing strategies. Consider working with multiple listing agents, utilizing social media marketing, and exploring direct-to-investor sales channels. 
4. Build Holding Cost Buffers: Consider adjusting your pro formas to account for 60-90 days on market rather than the 30-45 days that were common in recent years. This includes carrying costs like utilities, insurance, and financing.

Key Finding 2: Labor and Material Costs Are On The Rise

The JBREC + Kiavi survey data shows that renovation costs reached a new all-time high of $76,000 per flip in Q2 2025, up from $72,000 in the previous quarter. According to the survey, these costs now account for 16% of the average sale price, compared to 14% a year ago.

Breaking Down the Labor and Material Cost Increases:

• Regional Cost Disparities: Northern California currently leads with average renovation costs of $136,000 per flip, while the Northwest averages just $39,000 per renovation. Understanding your local cost structure could be essential for developing an accurate deal analysis.
  
  
• Labor Shortages Creating Premium Pricing: The Q2 JBREC + Kiavi survey indicates that skilled trades are commanding premium rates due to reduced availability. According to the survey, electrical, plumbing, and HVAC work are showing the largest price increases. 

Strategies for Managing Rising Labor and Material Costs

1. Develop Strategic Contractor Relationships: Consider building partnerships with 2-3 reliable contractors in each trade. Offer consistent work volume in exchange for competitive pricing and priority scheduling.
2. Consider Bulk Material Purchasing: For active flippers handling multiple properties simultaneously, buying materials in bulk could help reduce per-unit costs by 10-15%.
3. Focus on High-Impact, Cost-Effective Improvements: The recent JBREC + Kiavi survey data suggests that flippers focusing on kitchen and bathroom renovations are seeing better ROI than those attempting whole-house overhauls. Consider prioritizing improvements that buyers notice first.
4. Implement Value Engineering: Review each project for cost-cutting opportunities without sacrificing quality. This might include using luxury vinyl plank instead of hardwood or choosing quality laminate countertops over granite in entry-level properties.
5. Build Contingency Reserves: With costs relatively high, consider budgeting an additional 15-20% above your initial renovation estimate. Better to have unused reserves than face project delays due to funding shortfalls.
   
   

Key Finding 3: Labor Availability Tightening 

One of the most significant findings in the JBREC + Kiavi Q2 survey highlights challenges with labor availability. 33% of real estate investors nationally noted changes in workforce availability, with Southern California experiencing the highest impact at 50%. 

Understanding the Current Labor Market 

The survey highlights disruptions impacting different areas of the workforce. Many REIs report fewer workers on job sites due to changing market conditions or political circumstances.

Proactive Labor Management Solutions 

1. Diversify Your Contractor Network: Consider avoiding over-reliance on any single contractor or crew. Building relationships with multiple service providers could help ensure project continuity. 
2. Invest in Technology Solutions: Consider tools like project management software to coordinate smaller crews effectively instead of depending on larger teams. 
3. Explore Alternative Labor Sources: According to the survey, some REIs are experiencing success partnering with technical schools and apprenticeship programs to develop new talent pipelines. 
4. Adjust Project Timelines: Building extra time into your project schedules to account for potential workforce challenges could help. A six-week project might now require 8-10 weeks. 
5. Consider Self-Performance: For REIs with relevant skills, handling certain tasks in-house could help reduce dependence on external labor and potentially improve profit margins.
   
   

Turning Market Challenges Into Competitive Advantages

Property flipping can be challenging, especially in a shifting market. To succeed, flippers need to consider adapting their strategies. Based on recent JBREC + Kiavi survey  insights, here are five key strategies that successful flippers are adopting to maximize profits and build resilience in today’s real estate market:

• Focus on Selective Acquisition
  
  The survey shows that 52% of successful flippers are becoming more selective, targeting properties with higher profit margins over volume. This approach requires sharper deal analysis but delivers more sustainable returns. Try using the Kiavi ARV calculator to quickly get a fix-and-flip financing estimate before signing your next deal to alleviate some of the guesswork and make more informed decisions.
  
  

• Expand Geographic Focus
  
  Consider markets outside your immediate area where competition may be less intense. The survey indicates that Midwest and Southeast markets could still offer better fundamentals than coastal regions.
  
  

• Develop Rental Conversion Capabilities
  
  With 46% of flippers in some regions pivoting toward buy-and-hold strategies, having the ability to convert a slow-selling flip into a rental property could provide valuable flexibility.
  
  

• Enhance Property Presentation Standards
  
  With marketing periods extending in some areas, property presentation becomes increasingly important. Consider investing in professional photography, virtual tours, and staging to differentiate your investment properties in a crowded market.
  
  

• Build Strategic Cash Reserves
  
  The survey data suggests that flippers with stronger cash positions could weather market volatility better than those operating with tight margins. Consider building 6-12 months of carrying costs into your reserves.
  
  

Financing Considerations in the Current Environment

The JBREC + Kiavi survey reveals that real estate investors who secured financing in Q2 2025 paid an average interest rate of 9.5% for their fix-and-flip projects. With borrowing costs higher, choosing the right financing strategy is more important than ever for ensuring project success. 

• Alternative Financing Solutions: Don’t be afraid to shop around! Consider private lenders, hard money alternatives, or partnership structures that might offer better terms than traditional bank financing. With Kiavi, you can check your rate in minutes anytime.
  
  
• Speed of Execution: With higher carrying costs, reducing project timelines becomes essential. Consider focusing on properties that require cosmetic rather than structural improvements.
  
  

Regional Market Insights for Strategic Decision-Making

For real estate investors, understanding which markets could offer opportunities and which could require caution is essential to a successful strategy. Below, we break down the survey data to help guide your next investment move.

High-Opportunity Markets For Real Estate Investors:

• Southeast, Midwest, and Northeast: According to the survey data, the Southeast, Midwest, and Northeast regions show the most stable fundamentals, with 39%+ of REIs reporting good sales expectations.
• Southwest Region: Rising inventory and longer days-on-market could require more conservative underwriting, according to this quarter's survey results.
• Entry-Level Price Points: Properties under $300,000 continue to perform well across all regions, according to survey data, with consistent buyer demand.

Your Next Steps: Implementing These Insights

Overall, the JBREC + Kiavi Fix-and-Flip Survey data provides a roadmap for navigating current market conditions, but success requires translating insights into action.

Immediate Actions to Consider:

• Review your current pipeline and adjust pricing strategies based on local market conditions
• Expand your contractor network to reduce labor-related project risks 
• Increase renovation budgets by 15-20% to account for potential cost inflation
• Build additional time into project schedules for extended marketing periods

Strategic Adjustments to Consider:

• Focus on markets and property price points showing the strongest fundamentals
• Develop capabilities in multiple investment strategies (fix-and-flip, BRRRR, buy-and-hold)
• Invest in online systems and processes that could provide competitive advantages

The fix-and-flip market may be facing some challenges, but it remains a strong and promising investment opportunity for prepared real estate investors. With the right insights and strategy, you can uncover opportunities others might overlook. 

Ready to optimize your approach? Kiavi's financing solutions can help you navigate market changes while achieving strong returns on your portfolio. Let’s talk.