10 cities where you'll regret buying property in next 5 years, according to real estate agents
Owning property is a dream for many Americans, but some cities appear to be a better investment than others.
GoBankingRates, a personal finance website, asked a handful of real estate agents across the country where they believe to be the worst cities to buy property in the next five years.
Here’s what they said:
Shreveport, Louisiana
Economic growth in Shreveport, Louisiana, "has been modest," Ben Johnson, a real estate agent and the CEO of Big Ben, told GoBankingRates. Johnson said this is mainly because it’s linked to the oil and gas industry, "which, for the last couple of years, has become too volatile."
"The unemployment rate in the city is still higher than the national average," Johnson continued. "Property values have been flat, and the local market has had to grapple with high vacancy rates and almost a total absence of major infrastructure developments."
According to Johnson, this makes Shreveport a less desirable place for property investment, particularly if significant returns are needed.
Atlantic City, New Jersey
Atlantic City, New Jersey, has seen "drastic population loss over the past decade due to lack of job opportunities and economic decline," according to Daniel Rivera, the owner of Proactive Property Management.
This has led to excess housing supply and dropping property values, Rivera added.
"Cities with long-term declining populations should raise red flags for property investors," Rivera told GoBankingRates, adding that investors should be wary of other cities with similar dynamics.
Ontario, California
FILE - Houses line the street in the Inland Empire, the area east of Los Angeles, in Riverside and San Bernardino Counties, May 23, 2003, in Ontario, California. (Photo by David McNew/Getty Images)
One city in California to avoid when it comes to buying property is Ontario, according to Matt Morgan, a licensed California real estate salesperson with IPA Commercial.
"Despite its location within a major logistics hub, the city struggled to attract major employers outside of warehousing," Morgan told GoBankingRates. "Limited infrastructure, residential amenities and public transit hampered its ability to draw young, educated workers needed for a diverse, resilient economy.
"With most jobs concentrated in a single sector exposed to downturns, I expect Ontario’s housing market to remain weak over the next 5-10 years," Morgan added.
Springfield, Massachusetts
Johnson told GoBankingRates that Springfield, Massachusetts, located about 90 miles southwest of Boston, has become troubled economically, with high rates of crime and slow growth in jobs.
"The population has grown little and entire neighborhoods are dominated by older infrastructure and underfunded public services," Johnson told the website, noting that property values have not gone up by as much as the national average – and the property market is flat.
"Together, Springfield entails significant risks for an investor seeking dynamism, growth and stability," Johnson added.
Youngstown, Ohio
Youngstown, Ohio, suffers from "severe economic distress, evidenced by dramatic population loss and high unemployment rates," Samuel Davis, the CEO of London Gardeners, told GoBankingRates.
Youngstown’s population has declined by over 20% since 2010, with a vacancy rate of 12.4% in 2022, according to U.S. Census Bureau data – making it more challenging to find reliable tenants and sell properties quickly.
"There are a large number of vacant and dilapidated properties that have a bad effect on property value," Davis said. "It remains to be seen when meaningful growth will also take hold in its economy or even in its real estate market and property investment."
Rochester, New York
The economy in Rochester, New York, "has been transitioning for a long time due to the fact that most of the industries that used to drive the city [are] either downsized or wholly relocated," Johnson told GoBankingRates.
The real estate agent emphasized how Rochester’s population is on a continuous decline and, correspondingly, there are many empty properties.
"High property taxes and utility bills are also discouraging factors in this area," Johnson said. "The local real estate market has attracted less new investment; therefore, it cannot be considered an effective means for property investors looking for growth and appreciation."
Gary, Indiana
Gary, Indiana, home of the Jackson 5, is another city struggling with economic issues and a declining population, Davis said.
"Its heyday of steel making lives on in the pollution and abandoned property," Davis told GoBankingRates, noting how Gary’s crime rate ranks among the worst in the nation, while the local government has wrestled with budget overruns and structural problems.
The website reported that Gary also struggles with high poverty rates — Census data reported 44.7% in 2022 — and a 22.3% decline in population between 2010 and 2020.
According to Davis, this combination only further creates an unfavorable real estate climate for buying property.
Flint, Michigan
The water crisis in Flint, Michigan, that began in 2014 was devastating for the city’s real estate market, Davis noted.
"Nosediving property values have left the city still reeling from this crisis," Davis told GoBankingRates. "The economic recovery has been painfully slow, with many residents leaving the area."
Problems posed by infrastructure and public health make Flint riskier for purchasing property, according to Davis. This is especially true with the poverty rate hovering at 35.4% the last few years, according to Census records.
Stockton, California
Stockton, California, has had its share of unstable economies and a high rate of foreclosure in the past, according to Johnson.
While the city has made a comeback of sorts, it still has tough times ahead, the website reported.
"The cost of living is pretty high compared to earning an average income that makes it hard to sustain for many of its citizens," Johnson said. "It seems that Stockton’s economy always booms and then busts, which affects property values greatly."
"To investors, the volatility of the city, as well as its prolonged inability to solve the problem of crime, pointed to a high-risk environment for property investment."
Rockford, Illinois
Rockford, Illinois, has languished in economic stagnation, along with a high unemployment rate. This, in addition to 61.9 violent crimes per 10,000 residents in 2022, makes the midwestern city a bad place to buy property, according to Davis.
Rockford "registers a declining population and numerous vacant/separated properties," the real estate agent told GoBankingRates.
"The local economy remained in slow recovery as manufacturing had declined with a housing marker reflecting this instability," Davis said.
"Due to these challenging economic problems, the risks remain in investing in Rockford real estate."
This story was reported from Cincinnati.