5 Riskiest Real Estate Investment Cities
If you want to know which cities to avoid in your search for real estate, check out a recent Forbes article on the topic. We will soon discuss the best real estate investing options in the U.S., but for now, let’s focus on the ones that could bankrupt you:
Detroit is one of the U.S. leaders in terms of foreclosure rates, five times the national average. To add insult to injury, jobs are down, housing prices seem as if they can’t sink any lower, and people are moving away from the city.
Cleveland has seen the sixth worst rate of foreclosures in the U.S. at 3%. Prices fell and job growth has been minimal to nil. According to Forbes, Cleveland now has more vacant properties than Miami, “Condo City,” Florida.
Orlando has seen a 1.9% foreclosure rate and 7.4% vacancy rate, according to Forbes. The local job market grew in 2005 and ‘06, but halted in ‘07 and is expected to decline in 2008.
Miami has a huge housing inventory and not enough buyers to keep up, causing prices to drop dramatically. The city has the eighth highest foreclosure rate of all U.S. markets and it has seen a steadily declining job market over the last 17 months.
Las Vegas saw tremendous job growth in 2004 and 2005. Unfortunately, it was largely propelled by the construction industry and has now flatlined. So there is a huge surplus of unsold homes, a high foreclosure rate and zero job growth.
These are the cities that are already in disaster mode or trending toward disaster mode — never a good mix with your hard-earned investment dollars. It’s too bad, because some of these are great cities in which to buy vacation rental properties — but not now! Consider yourself warned!
April 4th, 2008 at 8:36 am
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April 4th, 2008 at 9:35 am
[…] Riskiest Real Estate Investment Cities Garth Turner wrote an interesting post today onHere’s a quick excerptIf you want to know which cities to […]
April 4th, 2008 at 1:41 pm
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April 6th, 2008 at 4:29 am
[…] Tim wrote an interesting post today onHere’s a quick excerpt… check out a recent Forbes article on the topic. We will soon discuss the best real estate investing options in the US, but for now, let’s focus on the ones that could bankrupt you: Detroit is one of the US leaders […] […]