Thinking about buying a home in the US? Whether you’re already living here or planning a move, choosing the right location is key. The US offers a wide variety of places to live, from bustling cities to scenic small towns, but not every state is a great investment right now.
Some areas are becoming too expensive, while others face natural disasters or economic issues. Here are seven states that experts say you might want to avoid when looking to buy property.
1. California: High Prices and Climate Risks
California is a dream for many with its sunny weather, stunning landscapes, and big cities like Los Angeles and San Francisco. However, real estate experts, like Yawar Charlie from CNBC’s Listing Impossible, warn that the state’s sky-high property prices make it tough to buy.
The average home here costs around $786,938, which is more than double the national average. On top of that, California faces frequent natural disasters, including wildfires, earthquakes, and droughts, which can further complicate homeownership.
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2. Florida: Beware of Storms and Rising Insurance Costs
Florida’s year-round warm weather, palm trees, and theme parks are tempting, but the state’s vulnerability to hurricanes and rising sea levels might make you think twice.
Realtor Rachel Stringer points out that these climate issues can lead to costly insurance premiums and expensive home repairs. Coastal homes, in particular, are at risk of losing value if rising seas make them uninhabitable.
3. Illinois: High Taxes and Financial Struggles
Illinois, home to Chicago, has a lot to offer in terms of culture and history. But with some of the highest property taxes in the country, combined with Chicago’s growing crime rates and budget issues, buying here may not be the best move right now.
Yawar Charlie warns that the state’s financial problems and cuts to essential services could make it harder for homeowners to justify staying, especially when there are more affordable and safer options elsewhere.
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4. Louisiana: Climate Change Driving Up Costs
Louisiana might sound appealing with its rich culture and the lively city of New Orleans, but climate change is making homeownership more expensive here. The state is highly susceptible to hurricanes and flooding, which can lead to costly insurance and potential property damage.
Real estate expert Tony Mariotti also points out that Louisiana’s slow job growth and lack of economic diversity make it less attractive for long-term investments.
5. New Jersey: High Taxes and Fewer Jobs
New Jersey might seem like a cheaper alternative to living in New York, but high property taxes and other expenses can add up quickly. Yawar Charlie explains that many big companies are leaving the state, impacting job opportunities.
On top of that, New Jersey residents often face long, congested commutes to New York City, making daily life more stressful and expensive.
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6. New York: Sky-High Prices and Ageing Infrastructure
Living in New York may seem like a dream come true, but now might not be the best time to buy. Along with high property taxes and expensive living costs, the state is dealing with aging infrastructure. The subway system, for example, is notorious for delays, making commuting a headache.
Plus, many people are moving out of the city in favor of suburban areas, thanks to the rise in remote work, leaving fewer people looking to buy homes in the city.
7. West Virginia: Struggling Job Market
West Virginia is known for its beautiful mountains and outdoor scenery, but the declining coal industry has hit the state’s economy hard.
According to Rachel Stringer, many small towns are losing jobs, which means fewer people are buying homes. If you invest here, you might struggle to sell later or get a fair price for your property.
While these states might not be the best options for property buyers right now, every real estate decision depends on your personal situation. Do your research and consider all the factors before making a move!