5 Worst East Coast Cities To Buy Property in the Next 5 Years, According To Real Estate Agents
Written by
Laura Beck
Edited by
Joe Evans
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When it comes to real estate, not all investments are created equal. While some cities are booming, others are facing challenges that could make property investments risky.
GOBankingRates talked to Chris Wesser, who runs Redy, a company that helps home sellers find the right agents, about which East Coast cities might be tough spots for buying property in the next few years.
Wesser knows his stuff.
“Predicting which real estate markets will be hot or cold five years from now is exceedingly complex, but investors can increase their odds of success if they develop a methodology and stick to it when making investment decisions,” he told us.
Here are five East Coast cities that might be risky bets for property buyers:
Hartford, Connecticut
Hartford is facing some economic hurdles. Wesser points out, “Technology/Manufacturing/Banking/Job Loss — this means these industries, and jobs in general, are disappearing at a rate likely to cause home value decline without other factors in place to offset or reverse the decline.”
This job loss could lead to fewer people being able to buy homes, potentially driving prices down.
Baltimore, Maryland
Baltimore is another city on Wesser’s list of potential underperformers. Like Hartford, it’s dealing with job losses in key industries. This can create a domino effect: fewer jobs means fewer people can afford homes, which can lead to falling property values.
Philadelphia Suburbs (New Jersey side)
The suburbs of Philadelphia on the New Jersey side are facing a unique challenge.
Wesser explains, “Housing Supply vs. Demand — this means outbound migration leads inbound migration in an area with significant housing supply (too many houses, not enough buyers).”
In simple terms, more people are leaving than moving in, and there are too many houses for sale.
Providence, Rhode Island
Providence is another city that Wesser says could potentially struggle in the coming years. Whether it’s from job loss or population decline, it would be a good idea to be extra careful before you invest your hard-earned money in Providence.
Buffalo, New York
Buffalo rounds out the list of East Coast cities that might be tough for property investors. Like some of the other cities on this list, Buffalo might be dealing with more people moving out than moving in, or struggling with job losses in key industries.
Wesser emphasizes that predicting real estate trends isn’t easy. He says, “It literally requires supercomputers to input 150-200 interdependent variables and begin modeling likely outcomes. Even the largest organizations fail at this, including massive hedge funds, corporations with household names and sophisticated nation-states.”
The Final Word
If you’re thinking about buying property, don’t just look at the price tag. Think about:
- Are people moving to or leaving the area?
- Are there good jobs in the city?
- Are there more houses for sale than people want to buy?
- What’s happening with the local economy?
Of course, just because a city is on this list doesn’t mean it’s absolutely a bad investments. As in all towns, some areas are better than others. In real estate, it’s all about location, location, location. (And what’s struggling now, might be thriving in the future!)
Before you take on any investment, do your homework. Look at the data, talk to local real estate agents, and think about your long-term plans.
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