Today’s ResiClub letter is brought to you by the Lennar Investor Marketplace!

Finding the modern features today’s renters are looking for is top priority for SFR investors. Lennar’s Everything’s Included® program ensures your property stands out with finishes and upgrades that are sought after by tenants, and coordinated by their national design team. Best of all, these features are included in the base price of the home, eliminating any surprise costs or upgrade fees. Lennar Investor Marketplace offers more than 2,000 curated, rental-ready new homes with Everything’s Included® features across 90+ high-demand markets nationwide. The online platform is completely free to join and is an all-in-one solution for SFR investors. Browse curated homes alongside institutional-quality data, delivered by their powerful underwriting dashboard that delivers real-time financial projections and local area insights.

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Where home flipping heads next

During the Pandemic Housing Boom, rapid home price appreciation supercharged fix-and-flip activity. The 2022 mortgage rate shock ended that run. Profit margins compressed, days on market increased, and many newer investors exited the space.

Our first LendingOne–ResiClub Fix-and-Flip Survey in Q1 2025 showed a market recalibrating to that new reality. The latest results tell a similar story: Flipping activity has stabilized, and seasoned flippers are still planning to execute deals in 2026—even in a slower national appreciation environment.

Today, we’re breaking down the full results from the LendingOne–ResiClub Fix and Flip Survey for Q1 2026, fielded between February 9 and March 5, 2026. In total, 201 home flippers took the survey. The data suggest the market remains steady: demand expectations are holding up across many regions, and margins—while no longer pandemic-level—remain workable for disciplined flippers.

1. Home Flipper Sentiment and Intent

Shifts over the past year

• Market sentiment has remained steady over the last year: 53% of U.S. home flippers describe their primary market as somewhat strong (44%) or very strong (9%), compared to 56% in Q3 2025 and 54% in Q1 2025.

• Expectations for demand remain resilient: 75% of flippers expect somewhat strong (53%) or very strong (22%) demand over the next 12 months, compared to 72% in Q3 2025.

Fix and Flip Activity:

• A strong majority of flippers (90%) say they are somewhat or very likely to conduct a fix and flip in the next 12 months, including 75% who say they are “very likely.”

• Just over half (52%) plan to convert 1 to 5 projects into rentals using the fix-to-rent method, while 38% do not plan to convert any projects.

• Home flippers in the Midwest are the most confident in buyer demand, with 83% describing conditions as either somewhat strong or very strong—the highest share of any region.

Market Outlook:

• 58% of survey participants expect the fix and flip market to stay the same over the next 12 months, compared to 42% in Q3 2025.

• 29% expect the market to strengthen, compared to 31% in Q3 2025.

• 13% expect the market to weaken, down from 22% in Q3 2025.

• Optimism runs highest in the Midwest (33% expect strengthening) and West (31%), while the Northeast shows the highest weakening share (15%).

2. Financial Considerations

Leverage:

• 61% of U.S. home flippers say their use of leverage is about the same compared to 12 months ago, meanwhile, 21% say they are using less leverage, and 18% say they are using more.

Financing Priorities:

• Interest rate (31%) and speed to close (24%) are the top considerations when choosing financing. 

• Speed to close (47%) is overwhelmingly the top consideration reported by home flippers in the West. 

3. The Biggest Concerns Across U.S. Markets

Organization and Timeline Stress:

• The sale phase causes the most delays (30%) for U.S. home flippers, followed by rehabbing/construction (24%) and acquisition (23%). 

• Lower holding costs would most improve returns according to 56% of flippers, followed by better contractors (32%), faster draws (9%), and more reliable inspections (3%).

Let’s view the full results.

Over the past week, ResiClub members (paid tiers) got these 3 additional housing research articles:

Lennar is so eager to keep its sales running at all-time highs that it’s offering incentives at 2010 levels

"Accidental landlords" are rising in housing markets where sellers have lost pricing power

Monthly report: Home price analysis for 800+ metros, 3,000+ counties, 25,000+ ZIPs

Top ad disclaimer provided by Lennar:

¹ The estimated capitalization rate (cap rate) is provided for informational purposes only and is based on current market conditions and available data. Actual returns and property performance may vary and are not guaranteed. The estimated cap rate does not account for all factors, such as financing costs, taxes, or future market fluctuations. Interested parties should conduct their own independent analysis and seek professional advice before making any investment decisions. Past performance is not indicative of future results. Lennar makes no guarantee of present or future market conditions. Forecasts, projections and other predictive statements should never be relied upon. You should consult your own accounting, legal and tax advisors to evaluate the risks, consequences and suitability of any real estate transaction. Features, amenities, floor plans, elevations, and designs vary and are subject to changes or substitution without notice. Items shown are artist’s renderings and may contain options that are not standard on all models or not included in the purchase price. Availability may vary. Please see a New Home Consultant and/or home purchase agreement for actual features designated as an Everything’s Included feature. This is not an offer in states where prior registration is required. Void where prohibited by law. Copyright © 2026 Lennar Corporation. All rights reserved. Lennar, the Lennar logo and Everything's Included are U.S. registered service marks or service marks of Lennar Corporation and/or its subsidiaries. Alabama – Lennar Homes Coastal Realty, LLC. / Arizona – Lennar Sales Corp.; HSP Arizona, Inc. ROC 242267B-2; ROC 138431B; ROC 144869A; Lennar Arizona Construction, Inc. ROC 228129B; Lennar Arizona, Inc. d/b/a Lennar Homes ROC 232731B; Lennar Communities Development, Inc. ROC 137295KA / California – CalAtlantic Group, Inc. (Responsible Broker: Joanna Duke) #02058246; BMR Construction, Inc. 830955; Lennar Sales Corp. (Responsible Broker: Joanna Duke) #01252753; CalAtlantic Group, Inc. 1037780; Lennar Communities, Inc. 66241; Lennar Homes of California, Inc. 728102 / Florida – Lennar Realty, Inc.; Lennar Homes, LLC CBC038894; CGC062343, CGC1518166, CBC1257529, CGC1523282, CBC1260831, CGC1526578, CBC051237; Standard Pacific of Florida GP, Inc. CGC1506052, CGC1517342; U.S. Home Corporation CGC1518911; WCI Communities, LLC CGC031523 / Idaho – RCE - 57241 / Maryland – CalAtlantic Group, Inc. MHBR No. 128; U.S. Home Corporation MHBR No. 316 / Minnesota – Lennar Sales Corp; CalAtlantic Group, LLC, BC736565; U.S. Home, LLC, BC001413 U.S. Home, LLC / Nevada – Lennar Sales Corp.; Greystone Nevada, LLC 48844; Ryland Homes Nevada, LLC; Lennar Reno, LLC 64226; Ryland Homes Nevada, LLC 56652 / New Jersey – Lennar Sales Corp. / North Carolina – Lennar Sales Corp. / Oregon – Lennar Sales Corp. #201206464; Lennar Northwest, Inc. CCB #195307 / Pennsylvania – Lennar Sales Corp. / South Carolina – Lennar Carolinas, LLC / Tennessee – Lennar Sales Corp. ph. 615-465-4328 / Utah – Lennar Homes of Utah, Inc. / Washington – Lennar Sales Corp.; CalAtlantic Homes of Washington, Inc. CALATHW836LR; Lennar Northwest, Inc.LENNAN1893QG / West Virginia – US Home Corporation d/b/a Lennar; #WV060106. Date 03/26