Profit Margins Continue to Rise Alongside Home Prices

As home prices have increased over the past few years, greater profits have followed. According to property data provider ATTOM’s 2025 U.S. Home Sales Report, the sale of the average single-family home in Q-3 2025 resulted in a profit margin of 49.9%, compared with 49.3% the prior quarter. Additionally, the typical home sale netted $123,100 in raw profit, which is up by 1.9% from the previous quarter but down by 3.5% from Q-3 2024.

At the same time, home prices continue to increase. The median national sales price in Q-3 2025 was $370,000, up by 1.2% from the previous quarter and up by 3.4% from the same time last year.

Even in areas where profit margins declined, they remained healthy. Profit margins fell quarter-over-quarter in 92 of the 157 largest metro areas analyzed in the report, and fell year-over-year in 132 of those metros. Ocala, Fla., saw the biggest annual profit margin decrease, falling from 88.3% to 58%. Ocala was followed by Punta Gorda, Fla., and Vallejo, Calif., where profit margins fell from 88.3% to 58% and from 66.4% to 43%, respectively.

The largest annual increases in home sale profit margins came in St. George, UT (up from 26.3 percent in the third quarter of 2024 to 37.2 percent in the third quarter of 2025); Gulfport, MS (up from 26.2 percent to 35.7 percent); Augusta, SC (up from 37.8 percent to 43.7 percent); Lexington, KY (up from 42.9 percent to 48.6 percent); and Dayton, OH (up from 55.1 percent to 60.7 percent).