Real Estate Agents Weigh In On The Some Of The Worst States To Buy Property In Throughout The...

When it comes to buying a new home, there are a lot of factors that come into play. Housing market experts and real estate agents recently spoke to the media about the current state of the US real estate market, detailing some of the worst states to buy a property in within the next 5 years, to hopefully provide some clarity.

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The US housing market is unpredictable, so when it comes time to invest in a property, doing the proper research is integral. Recently, market research and media publication GOBankingRates spoke with real estate agents and experts to determine some of the worst states that prospective buyers should avoid buying a home within the next 5 years based on current market conditions.

For example, while California is one of the most popular living destinations in America, like in many other states, affordability is a major issue. 

“As a real estate broker in Los Angeles, I’ve observed some trends that suggest certain states might become less attractive for homebuyers over the next five years,” Yawar Charlie, estates director of Aaron Kirman Group at Christie’s International Real Estate, told Yahoo Finance

“It’s not just the high cost of living here that’s a problem. The state also struggles with issues like wildfires and droughts, which can make homeownership even more challenging and expensive. Additionally, the tech boom, especially in areas like the Bay Area, has driven housing prices to astronomical levels, pushing many to seek refuge in more affordable states.”

“While no one can predict the market with absolute certainty, the patterns we’re seeing now offer some valuable clues.”

Florida has always been a top destination for individuals entering retirement. The main deterrent is the unpredictable weather and storm patterns. 

“The state’s location makes it extremely vulnerable to hurricanes and rising sea levels driven by climate change. Serious considerations include rebuilding costs, disruptions and escalating insurance premiums due to storm damage. Coastal properties may lose substantial value if they become uninhabitable due to rising sea levels,” said Rachel Stringer, a Realtor at Raleigh Realty.

Illinois is a huge manufacturer for food in America, and Chicago is one of the most popular cities in the nation. Financially speaking though, its residents are struggling.

“Illinois, and specifically Chicago, faces significant financial woes. The state has some of the highest property taxes in the country, and Chicago is grappling with a high crime rate and budget deficits, leading to cuts in essential services and increased taxes,” Charlie stated. 

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“These financial strains make it difficult for residents to justify staying when they could find a safer and more financially stable environment elsewhere.”

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Tony Mariotti, a luxury real estate agent, said Americans planning to invest in property in Louisiana should rethink making any major moves, at least right now. 

“Louisiana is highly susceptible to climate change impacts, such as hurricanes and flooding. These risks can lead to higher insurance costs and potential property damage,” he said to Yahoo

“The state also struggles with lower job growth and economic diversification, making it less attractive for long-term investments. Infrastructure issues add to the challenges of property ownership here.”

Charlie discussed how New York and New Jersey have always been expensive, and the current state of the economy is making prices and inflation increase vastly. 

“Besides the high property taxes, New Jersey is dealing with an exodus of major corporations, which impacts job availability,” Charlie explained.

“The state also has some of the highest health insurance premiums in the country, adding another layer of financial stress for residents. Furthermore, the congestion and traffic, especially for those commuting into New York City, can be a daily frustration.”

“Beyond the high property taxes and cost of living in New York City, there’s also the matter of aging infrastructure. The subway system, for example, has been notorious for delays and breakdowns, making daily commutes a headache. Plus, the pandemic has shifted many jobs to remote work, reducing the need to live in or near the city and prompting many to relocate to suburban or even rural areas,” he said.