I’m a Real Estate Investor: These Are the Worst Cities To Buy Property Right Now
Written by
Vance Cariaga
Edited by
Jenna Klaverweiden
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If you’ve invested in real estate this decade — particularly residential properties — you probably made out pretty well, with median home prices seeing healthy growth.
Whether that growth is sustainable in the future is no sure thing, however. Here are four of the worst cities to invest in property right now, according to Dani Beit-Or, founder and CEO of Simply Do It, a real estate investment firm.
Also see how to diversify your portfolio with real estate.
Austin, Texas
- Median home price (January 2026): $499,950
- Comparison to national median: 18% higher
- Effective property tax rate (Travis County, 2023): 1.5355%
Home prices in Austin are 18% higher that the national median, and property taxes in Texas rank among the highest in the country, according to Rocket Mortgage. Those are two big reasons you might not want to buy property in Austin right now.
“Austin used to be everyone’s go-to investment market. Then competition increased, prices ran up, and returns came down,” Beit-Or told GOBankingRates. “Deals still exist, but they’re harder to find, and margins are much tighter than they used to be.”
Irvine, California
- Median home price (January 2026): $1.42 million
- Comparison to national median: 235% higher
- Effective property tax rate (Orange County, 2023): 0.6659%
Irvine is located in one of the most expensive areas of the country, and if you don’t have a lot of money to invest in property, you’re better off looking somewhere else.
Beit-Or has firsthand knowledge, being a resident of Orange County who “loves” living there.
“But as an investment market, it’s a hard pass,” he said. “Prices are extremely high, cash flow is usually low or negative, and tenant laws strongly favor renters. It’s a fantastic place to live, but not a great place to invest.”
Oklahoma City
- Median home price (January 2026): $258,825
- Comparison to national median: 39% lower
- Effective property tax rate (Oklahoma County, 2023): 0.9841%
If your goal is affordable housing, then Oklahoma City is a good option. But if you’re looking for strong investment returns, you might want to steer clear.
“Metro Oklahoma City is a tricky one,” Beit-Or said. “When investors look at it, they think it checks a lot of good boxes. But what they don’t see and don’t measure is its performance over many years.”
In this case, “performance” refers to price appreciation and rent appreciation over the past 20-odd years — and Oklahoma City falls short on both counts.
“Metro Oklahoma City has consistently performed at the lowest price appreciation and rental appreciation compared to all the others, and it has been very consistently doing so,” Beit-Or said.
Raleigh, North Carolina
- Median home price (January 2026): $395,000
- Comparison to national median: 7% lower
- Effective property tax rate (Wake County, 2023): 0.715%
Raleigh has been a hot housing market for many years thanks to its status as a major hub for higher education, technology and government. The problem for investors is that “hot” real estate markets don’t always equal “profitable” ones.
“Much like Austin, heavy competition pushed prices up too quickly in Raleigh,” Beit-Or said. “That has squeezed margins, and for me, that’s a problem. I want cash flow on day one, and Raleigh doesn’t consistently provide that anymore.”
Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
The median home prices listed are from Redfin. Property tax rates are from the Tax Foundation.
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