Five US Cities Where Real Estate Has Been Hardest Hit
The upside to this down market is that investors now have a plethora of investments to choose from. From sea to shining sea, you see For Sale signs popping up on front lawns everywhere. It is, most definitely, a buyer’s market and will be for some time to come.
The very best deals are typically in the markets that are hardest hit. If you want to know where to investigate for investments, you should check out the following five U.S. cities for the best real estate deals:
#1 – Detroit, MI – The city hardest hit by the economy, Detroit, experienced 4.8 times the national average for foreclosures last year. Homes in this city start from as low as $1,400.00. No, that’s not a typo. They literally start from as low as one-thousand four-hundred dollars. That’s about $1.22 per square foot. It would cost you more to build one of these houses. So, how could you not invest in rental property in this city with prices this low? Detroit, however, is not known for its safety. No, on the contrary, it’s actually the second most dangerous city in which to live in the whole U.S. of A. Regardless, you have to admit, that is some pretty tempting pricing on that Detroit real estate. Keep in mind, you don’t have to live there to invest, and there are property management companies that you can hire to manage the property for you.
#2 – Stockton, CA – This city has 4.8% of its households in some form of foreclosure action. Homes in Stockton start from as low as $20,000, and rent for as low as $390 per month. That’s a record low for even the Stockton area. Speaking of records, there a record number of homes being auctioned off in this area, too. It’s unfathomable. Who would not want to invest in this area? Unfortunately, this city is not known for being safe, either. Stockton ranked number eight on the list of the most dangerous metropolitan areas in which to live. There are some very good deals here, though, so you may want to pencil one of these auctions into your busy investing schedule.
#3 – Las Vegas – No, it’s not true. Au contraire, everything that happens in Vegas does not stay in Vegas where a 4.2% foreclosure rate has been noted. This once very booming city that sprawled with new growth is now somewhat stigmatized. Due to exceptionally rapid growth, home values became over-inflated over such a short period of time that when the real estate crash abruptly occurred there, it left many home owners holding the bag on homes that won’t be worth their purchase price for years to come. In spite of this, there are still lots of good deals in this market. Home prices start from as low as $126,000. Las Vegas is also ranked fourth on the list of most dangerous metropolitan cities.
#4 – Riverside-San Bernardino – California has been one of the states hit hardest by the down economy in regards to real estate. Average home prices still beat out the national average, but individual home prices have plummeted. Homes start as low as $25,000 in these markets, record lows for both. San Bernardino is the twenty-fourth most dangerous city and eighth most dangerous metropolitan city, although, Riverside did not fall within the top cities for crime.
#5 – Sacramento – Ranked fifth in the list of best cities to buy real estate is Sacramento. Midtown Sacramento, a.k.a. The Grid, has hip bistros and shops that cover the twenty-four square blocks at its center. Even this area of Sacramento holds exceptional real estate investment opportunities, including commercial properties. Home prices start at an incredible low of $15,000 in this market. This city did not fall within the top cities for crime.
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