If you're looking to retire early by moving to a new city or just want a change of scenery, many cities in the U.S. probably seem like promising candidates.
However, some of the most famous cities in the U.S. no longer appear to be hotspots, and many have turned ice-cold.
A recent FinanceBuzz study tracked growth and decline in cities over a three-year period that began with the last full pre-pandemic year (2019) and ended in 2022. Every U.S. city with a population above 200,000 people in 2019 was included, for a total of 117 cities.
Based on several criteria — from population change to new businesses and percentage of residents with debt in collections — these are the top 10 fastest-declining cities in the U.S.
Earn Points and Miles: Find the best travel credit card for nearly free travel 1. San Francisco
Between 2019 and 2022, San Francisco witnessed a remarkable 8.29% decline in population, marking the most significant drop among the 117 cities in the FinanceBuzz study.
In addition to the population exodus, home values in the city saw sluggish growth, trailing the national average by nearly 73%.
Slow per-capita rates of new home construction and business openings add to the challenges in this legendary city.
If you plan to move here, prepare yourself financially for living in the country's fastest-declining city.
Own a car? Here's 7 warning signs you're paying too much for car insurance. 2. New Orleans
New Orleans stands out for having the highest rate of vacant houses among the cities analyzed, with a staggering 22.9% of homes unoccupied.
The city experienced a 5% population decline over the three years ending in 2022, coupled with meager rates of new home construction and new business openings.
3. New York
Despite its iconic status, New York City is grappling with economic challenges, as home values rose at a rate 71% slower than other cities in the three years ending in 2022.
The Big Apple’s unemployment rate jumped by 1.2%, sharing the highest increase with Detroit among the top 10 declining cities.
Are you a homeowner? Discover 8 savvy money moves to stretch your budget
4. Boston
Boston experienced a 6% decline in population over the three years of the study. Home value increases lagged 62% behind the national average.
These factors collectively position Boston in the top five of the fastest-declining cities, signaling a challenging period for the historic city.
5. Detroit
Detroit's population decline of 7.4% between 2019 and 2022 placed it second only to San Francisco.
Beyond the exodus of residents, per-capita income in the city rose sluggishly, trailing the national average by 75%, the third worst rate in the country.
6. Chicago
Another Midwestern city, Chicago, saw home values rise 58% slower than other cities, which means buying a home there may not be a smart homeowner move .
Additionally, per-capita income growth lagged by 36% compared to its peers over the three years ending in 2022.
Grow Your $$: 11 brilliant ways to build wealth after 40 7. Anchorage, Alaska
Anchorage is the largest city in Alaska. It finds itself on this list due to sluggish home value increases and low per-capita rates of new home construction and new business openings.
These metrics reflect nasty economic headwinds for the northern city.
8. Portland, Oregon
Portland witnessed a 3% decline in population during the study period. At the same time, per capita income (26%) and home values (30%) rose at rates slower than the national average.
The combination of a shrinking population and economic slowdown positions Portland as one of the fastest-declining cities.
9. Honolulu
Despite having a relatively low percentage of the population with debt in collections (15%), Honolulu faces housing challenges.
The city built only 135 new homes per 100,000 residents in 2022, placing it among the 10 lowest rates in the country. Existing home values increased at a rate 51% slower than in other cities nationwide.
9 nearly secret things to do if you fly Southwest 10. Baton Rouge, Louisiana
Baton Rouge joins fellow Louisiana city New Orleans on this list due to slow home values and per capita income growth.
Home values in the city increased 57% slower than those of its peer cities between 2019 and 2022. Meanwhile, income rose 51% slower than the national average, so buying a home here might not be the smartest way to build wealth .
Bottom line
Perhaps 2024 is the year you plan to move to a new city. Maybe you are looking for a new place to get ahead financially or simply want a change of scenery.
However, some of the most famous cities in the U.S. may no longer be prime candidates for such a relocation. Think long and hard about whether moving to these declining cities is the right choice for your future.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
Local News
