Real Estate Investors Beware: 20 U.S. Cities Where Home Values are Falling
Investing in real estate can be a smart financial choice, but it comes with risks. Purchasing a single-family home to rent out means facing potential issues such as irresponsible tenants, vacancies, and costly maintenance. In addition, it’s vital to buy in areas likely to appreciate in value. However, some cities are experiencing the opposite trend.
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GOBankingRates recently analyzed cities across the United States to identify locations where single-family home values are decreasing. Below are the top 20 cities where real estate investors are earning the least.
Brenham, Texas
- Average single-family home price: $315,304
- Percentage of homes sold below list price: 74.2%
- Median price cut (percentage): 4.1%
- Share of listings with price cuts: 24.9%
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Check Out: 10 Housing Markets That Will Plummet in Value Before the End of 2024
Ponca City, Oklahoma
- Average single-family home price: $122,767
- Percentage of homes sold below list price: 70.1%
- Median price cut (percentage): 5.2%
- Share of listings with price cuts: 24.5%
Read More: America’s 50 Fastest-Growing Suburbs With Home Values Under $500,000
Alexandria, Louisiana
- Average single-family home price: $128,998
- Percentage of homes sold below list price: 61.6%
- Median price cut (percentage): 3.3%
- Share of listings with price cuts: 27.0%
Burlington, Iowa
- Average single-family home price: $119,022
- Percentage of homes sold below list price: 67.9%
- Median price cut (percentage): 4.7%
- Share of listings with price cuts: 25.5%
Tampa, Florida
- Average single-family home price: $396,438
- Percentage of homes sold below list price: 64.9%
- Median price cut (percentage): 2.4%
- Share of listings with price cuts: 33.8%
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Houma, Louisiana
- Average single-family home price: $185,437
- Percentage of homes sold below list price: 57.7%
- Median price cut (percentage): 3.5%
- Share of listings with price cuts: 22.5%
Wheeling, West Virginia
- Average single-family home price: $138,989
- Percentage of homes sold below list price: 62.8%
- Median price cut (percentage): 4.4%
- Share of listings with price cuts: 27.0%
Beaumont, Texas
- Average single-family home price: $151,005
- Percentage of homes sold below list price: 63.5%
- Median price cut (percentage): 3.7%
- Share of listings with price cuts: 24.2%
Fort Madison, Iowa
- Average single-family home price: $109,069
- Percentage of homes sold below list price: 72.5%
- Median price cut (percentage): 5.8%
- Share of listings with price cuts: 21.3%
Check Out: 5 Housing Markets That Will Plummet in Value Before the End of 2025
Top 15 Cities Where Home Sales Are Struggling
In today’s real estate landscape, certain cities have shown trends where investors are facing challenges. Here’s a look at these cities and the current housing statistics that define their markets.
Palm Bay, Florida
- Average single-family home price: $314,804
- Percentage of homes sold below list price: 70.0%
- Median price cut (percentage): 2.4%
- Share of listings with price cuts: 33.9%
New Orleans, Louisiana
- Average single-family home price: $232,661
- Percentage of homes sold below list price: 67.3%
- Median price cut (percentage): 3.1%
- Share of listings with price cuts: 26.7%
Somerset, Kentucky
- Average single-family home price: $184,404
- Percentage of homes sold below list price: 72.9%
- Median price cut (percentage): 3.7%
- Share of listings with price cuts: 28.8%
Sevierville, Tennessee
- Average single-family home price: $379,462
- Percentage of homes sold below list price: 68.2%
- Median price cut (percentage): 2.1%
- Share of listings with price cuts: 35.5%
The Villages, Florida
- Average single-family home price: $408,342
- Percentage of homes sold below list price: 78.5%
- Median price cut (percentage): 2.9%
- Share of listings with price cuts: 28.0%
Austin, Texas
- Average single-family home price: $550,856
- Percentage of homes sold below list price: 64.4%
- Median price cut (percentage): 2.7%
- Share of listings with price cuts: 31.6%
Athens, Texas
- Average single-family home price: $241,154
- Percentage of homes sold below list price: 79.7%
- Median price cut (percentage): 3.6%
- Share of listings with price cuts: 29.6%
Punta Gorda, Florida
- Average single-family home price: $419,564
- Percentage of homes sold below list price: 81.2%
- Median price cut (percentage): 3.3%
- Share of listings with price cuts: 24.1%
London, Kentucky
- Average single-family home price: $169,043
- Percentage of homes sold below list price: 79.4%
- Median price cut (percentage): 4.0%
- Share of listings with price cuts: 30.1%
North Port, Florida
- Average single-family home price: $341,398
- Percentage of homes sold below list price: 81.8%
- Median price cut (percentage): 2.9%
- Share of listings with price cuts: 29.1%
Lake Charles, Louisiana
- Average single-family home price: $186,296
- Percentage of homes sold below list price: 66.3%
- Median price cut (percentage): 2.8%
- Share of listings with price cuts: 25.8%
Methodology: This analysis by GOBankingRates ranks cities based on their real estate profitability for investors. Data on average home values was gathered from Zillow Home Value Index as of September 2024, with additional insights on price cuts and sales sourced from Zillow Research Data. The compilation of data took place on October 4, 2024.
Source: GOBankingRates
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