5 Worst Midwest Cities To Buy Property in the Next 5 Years, According to Real Estate Agents

When it comes to buying property , not all cities are created equal. Some places are fantastic for investing, while others might be best to avoid for now.

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GOBankingRates talked to Drew Heberer of Heberer Homes , a real estate expert from Iowa, about which Midwest cities might be risky bets for property buyers in the next few years.

Here’s what he had to say about the five cities that could be tough for real estate investment.

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Detroit, Michigan

Detroit has been trying really hard to make a comeback, but it’s still facing some large-scale problems. Heberer explained, “Although the state and local governments have made significant efforts toward revitalization, Detroit remains one of high crime and economic instability.”

What does this mean? Well, even though the city is working on improving things (and there’s still plenty to love about Detroit!), there’s still reason to pause before considering investment. The city’s economy isn’t strong, which means jobs can be harder to find. When people can’t find jobs, they might not be able to buy houses or pay rent – hence, a riskier place for investment.

All of this adds up to make Detroit a more difficult place to buy property right now. Heberer said it’s “a less than desirable place to live or invest.” This doesn’t mean Detroit will never be the place to park your investment dollars, but for now, it might be smart to look elsewhere if you’re thinking about buying property.

Gary, Indiana

Gary is another city that might give you pause on investing right now. Heberer pointed out, “Large economic struggles and a shrinking population have left most properties devalued.”

Let’s break that down. When a city has “economic struggles,” it means businesses are closing and people are losing jobs. Add into the mix, a population in decline, and it’s not a great combination. After all, when people leave a city, there are fewer people to buy or rent homes.

These problems have caused property values to go down in Gary. This means houses are worth less money now than they used to be. Heberer added, “There is a high inventory with no desire from buyers to live or invest there at this time.” In other words, there are lots of empty houses, but not many people want to buy them.

Cleveland, Ohio

Cleveland is unfortunately dealing with some similar issues, “The very high vacancy rates and continued economic struggles make this a really unattractive proposition for property investors,” said Heberer.

High vacancy rates are not a good thing – because a lot of empty properties — a place is not currently desirable. Breaking that down even further, when a place isn’t desirable, younger professionals don’t flock there and industry can wane.

Add to the mix that Cleveland’s economy is also having problems. When a city’s economy is weak, it’s harder for people to afford homes. This makes it risky for investors to buy property there because they might have trouble finding people to rent or buy their properties.

Flint, Michigan

Flint has been in the news a lot in recent years, and not for good reasons. Heberer explained, “Severe and chronic issues related to the water crisis along with a downhill economic situation have kept property value growth in Flint at a standstill.”

The water crisis in Flint is obviously a big problem, leaving residents with water that’s unsafe to drink. Even though the city has said they’re working on fixing this, it’s still affecting how people think about living there. It begs the question: Would you want to buy a house somewhere you couldn’t safely drink the water?

On top of that, Flint’s economy isn’t thriving. When Heberer says property value growth is “at a standstill,” he means that house prices aren’t going up. Of course, people hope their house will be worth more in the future than when they bought it. In Flint, that might not happen anytime soon.

Youngstown, Ohio

Last on our list is Youngstown. About this city, Heberer said, “With a decreasing population and industrial base, real estate investment in Youngstown is an uphill task. There is not much planning for current development or gentrification that would increase the current situation.”

Let’s unpack that. Youngstown used to be a big industrial city, with lots of factories and jobs in manufacturing. But many of those jobs have gone away, and people have been leaving the city. When a city loses jobs and people, it’s usually bad news for the housing market.

Heberer also mentions that there isn’t much “planning for current development or gentrification.” This means the city isn’t doing much to attract new businesses or improve neighborhoods. Without these kinds of improvements, it’s hard for property values to go up.

The Final Word

While Heberer predictions might come true, It’s important to remember that cities can (and do!) change. Just because these places are having trouble now doesn’t mean they always will. But if you’re thinking about buying property in the next few years, these might not be the best places to do it.

Another good thing to remember is that real estate is all about location, location, location. Even in cities that are struggling overall, there might be some neighborhoods that are doing better. And sometimes, cities that are having problems now can turn things around in the future.

The most important thing is to do your homework before buying property anywhere. Look at how the city is doing overall, check out the neighborhood you’re interested in, and think about whether you’d want to live there yourself. If the answer is no, it might not be the best place to buy property, even if the prices look low.

This article originally appeared on GOBankingRates.com : 5 Worst Midwest Cities To Buy Property in the Next 5 Years, According to Real Estate Agents