Sales Manager
Early data from 2026 is starting to show something many investors in the DC-Maryland-Virginia region have been waiting for: investor activity is quietly increasing again.
After several years where intense retail buyer competition made acquisitions extremely difficult, the balance between retail buyers and investors appears to be shifting. That shift is beginning to show up in the numbers.
Across the U.S., investors have recently accounted for roughly 27-30% of home purchases, one of the highest participation levels recorded in recent years.
Markets like the DC-Maryland-Virginia region tend to see investor activity increase when affordability pressures rise for retail buyers. That dynamic is becoming more visible locally.
In Maryland, investment properties are often being acquired 40-45% below the median home price, highlighting how investors are targeting value opportunities and distressed properties where retail buyers are less active.
Retail buyers today are extremely payment sensitive due to mortgage rates and are far less willing to take on renovation projects than they were a few years ago.
That leaves a growing segment of listings where investors have a clear advantage.
Properties that need work are sitting longer and trading at larger discounts compared to renovated homes, which is exactly where investors tend to step in.
Fix and flip margins tightened significantly during 2022-2024 as acquisition prices surged and construction costs rose.
But across the Mid-Atlantic region, average gross flip returns have generally stabilized in the mid-20% range, showing improvement from the compressed margins investors saw during the peak of the seller’s market.
The biggest driver right now isn’t higher resale prices. It’s the return of acquisition discounts on properties that need significant work.
Retail buyers are increasingly focused on turnkey homes, which leaves renovation-heavy opportunities for investors.
In other words, the best flips right now are the properties retail buyers simply don’t want to take on themselves.
One noticeable change in today’s market is buyer leverage during inspections.
Retail buyers are using inspections much more aggressively than they did during the ultra-competitive years.
For investors, that means inspection repair budgets need to be built into your numbers from day one.
Even well-executed renovations are seeing buyers request credits or additional repairs before closing. Flips can still be very profitable, but underwriting needs to assume some level of post-inspection negotiation.
From our perspective on the lending side, deal flow across the DMV has been gradually picking up in early 2026.
Most of the projects we’re financing right now fall into two buckets:
We typically see this strategy most often at higher price points, where finished homes trade north of $1,000,000, and the spread between the existing property and the finished product justifies the scale of construction.
In these situations, investors are effectively rebuilding the property to match the expectations of today’s retail buyers, who are still paying strong premiums for larger, modernized homes in desirable neighborhoods.
The DMV market hasn’t necessarily become easier overall, but it has become more investor-friendly again.
Retail buyers remain active for turnkey homes, but many are hesitant to take on renovation projects themselves.
That hesitation is creating opportunities for investors who can:
For disciplined investors who buy right and manage projects well, 2026 is shaping up to be a much more workable environment than the past few years.
