12 Cities To Avoid If You Plan To Buy a House by 2030
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The goal of homeownership might be in sight for you before 2030. Many Americans dream of owning a home, and getting in on a market before it gets hot only sweetens the fantasy. However, some cities are not great areas to buy, even if prices are low and it seems like there might be potential for growth.
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Here are 12 cities to avoid if you plan to buy a house before 2030.
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Fresno, California
While it is located in the heart of California’s Central Valley, the only thing growing is the bad weather and poor air quality.
“The city of Fresno is cheap but has air quality problems,” said Johnny Austin of Sell My House Now LLC.
“Its economy is limited, because it only relies on agriculture for jobs, making it vulnerable to economic changes that affect property value,” Austin added. “This means that many people do not want to live in the area because it has bad air, which affects their health.”
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Phoenix
If you think Phoenix is hot, it might just be the weather, not the housing market.
According to Scott Beloian, the broker and owner of Westcoe Realtors in Riverside, California, Phoenix “saw massive overbuilding and price inflation in the mid-2000s that led to a housing crisis.
“Prices are still far below peak levels today,” Beloian continued. “While the market has heated up again recently, Phoenix remains heavily dependent on construction and migration, both of which can slow quickly. I would wait for more stable market conditions before buying there.”
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Detroit
Once a bustling metropolis of industry, Detroit has fallen on hard times and has tried for decades to regain the glory it had nearly half a century ago.
“Detroit has faced significant economic challenges, including high unemployment and a struggling auto industry,” said Kwame Darko, the founder of KD Buys Houses.
“Although there have been efforts to revitalize the city, its economic instability continues to affect the real estate market,” Darko said. “The city also struggles with a declining population, which has led to an oversupply of housing and decreased demand.”
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Toledo, Ohio
Toledo’s population continues to decline, and so does its industry, according to Austin. While the city watches everyone exit, prices for homes are dropping, yet the jobs and economy to afford one in the area are dwindling.
“The manufacturing sector has been unable to recover from previous recessions, leading to reduced housing demand and stagnant home prices, making the city risky for long-term buyers,” Austin said.
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Buffalo, New York
Even with Niagara Falls as a neighbor, Buffalo is not the place to plant roots.
Darko said, “Buffalo has experienced a steady population decline, leading to a surplus of housing and lower demand.
“The city also faces economic challenges, including lower wages and a struggling job market, which can negatively affect the housing market,” Darko added.
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Las Vegas
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Beloian said Las Vegas “also went through a huge housing boom and bust. Its economy remains largely dependent on tourism, which experiences ups and downs.
“Home prices are well below previous highs, but have shot up sharply again, raising bubble concerns,” Beloian added, noting that the market feels overheated and due for a correction.
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Cleveland
Cleveland is another city in Ohio that potential homebuyers should cross off their list of places to buy before 2030.
Cleveland’s real estate market has been slow to recover from the 2008 financial crisis, according to Darko.
“While housing here may be affordable, the market’s slow appreciation rates are a concern,” Darko said. “High vacancy rates in residential properties further indicate a lack of demand and could negatively impact property values.”
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Gary, Indiana
Michael Jackson and his family put Gary, Indiana on the map, with the musical family owning a house in the area at the start of their careers. Now, Gary is known for economic plight, abandoned buildings and a lot of crime-related problems.
“Poverty levels are high in Gary, as evidenced by vacant houses everywhere, and crime rates are also very high, contributing to real estate problems,” Austin said.
“Gary used to be a vibrant industrial town, but now fewer jobs are available, resulting in many unoccupied buildings with low market value,” Austin continued, adding that these continuous economic challenges and social issues make Gary unattractive to people looking for new homes.
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Jackson, Mississippi
There are lots of places in the southern region of the United States to investigate and research for buying a home in the next five years. Unfortunately, Jackson is not one of them.
“Jackson’s economic instability and slow job growth contribute to an unstable real estate market,” Darko explained. “Additionally, high poverty rates in the city can lead to lower property values and less stability in the housing market.”
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Seattle
Along with San Francisco, Seattle is a northwestern tech based town that, in Beloian’s opinion, faces “limited land, anti-growth policies and home prices that far outpace incomes.
“Only the very wealthy can afford homes,” Beloian said. “With limited room for further price appreciation, these markets feel ready for stagnation or declines over the next 10 years. For most buyers, the numbers simply won’t make sense.”
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St. Louis
Darko said, “St. Louis is known for its high crime rates, which can deter potential homebuyers and impact property values.”
“The city’s economic decline in various sectors, coupled with slow job growth, adds to the uncertainty of its real estate market,” added Darko.
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Baltimore
Baltimore is popular among tourists due to its historical sites. However, as Austin pointed out, some regions have very high crime levels, while others struggle economically within the same locality.
“Property values tend not to be stable around Baltimore, since they can drop significantly when crimes persist or if there is no business activity in specific neighborhoods over time,” Austin said.
“Investors can shy away from buying houses here because taxes are usually steep,” Austin added. “The combination of high property taxes and socio-economic issues can deter long-term investment.”
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