Don’t Buy A House In These 5 US Cities

When it comes to buying a house, location matters. But there’s one factor you might overlook: the population of the city you’re considering. The U.S. Census Bureau predicts that nearly half of the 30,000 cities in the U.S. will experience population decline by the end of this century. While overall population is expected to increase, urban areas are losing residents as people move to suburban and rural regions.

The impact of shrinking populations extends beyond demographics. It affects the housing market, too. In cities with declining populations, there are fewer prospective buyers, leading to potential declines in home prices.

According to a Freddie Mac study reported by Insider Monkey, home values in shrinking cities depreciated by an average of 2.7%, compared to a 3.8% appreciation in growing cities.

Here are five cities to be cautious about when buying a home:

1. Detroit, Michigan

Once the fifth largest U.S. city, Detroit has lost 61% of its population since the 1950s. Despite this decline, home values have risen recently. However, it’s essential to consider the long-term trend before investing.

2. Birmingham, Alabama

Despite its warm climate and proximity to Gulf Shores, Birmingham’s population continues to shrink. Home prices are rising, but they remain 52% below the national average. Selling a home here might become challenging.

3. St. Louis, Missouri

High crime rates, a tight job market, and suburban migration have contributed to St. Louis’s 7.14% population loss in the past five years. Home prices are already dropping.

4. Baltimore, Maryland

Baltimore’s population has declined by 6.82% in recent years. While home prices have risen, the city’s proximity to Washington, D.C., may help maintain property values.

5. Cleveland, Ohio

Cleveland has experienced a 6.2% population decline. Although home prices have risen, be cautious not to overspend, as selling might be challenging in the future.

Remember, understanding population trends can be crucial when making a real estate investment. Choose wisely to ensure your home appreciates over time.

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