When buying a home — be it to live in or to rent out to generate passive income — it’s important to know your local housing market conditions. Is it strong, stable and growing? Are mortgage rates decent? Or is it in an irreversible slump?
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GOBankingRates determined the 50 worst housing markets in the U.S. for growth. To do this, we looked at the 200 largest metro statistical areas (MSAs) according to the real estate market and found the one-year percentage change in home value, the two-year percentage change in home value, the mean days from pending to close, the share of listings with a price cut and the mean price cut.
Here are some key findings:
Read on for details on the 50 U.S. housing markets that are the worst for growth.
50. Salinas, California
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49. Orlando, Florida
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48. Baton Rouge, Louisiana
47. Eugene, Oregon
46. Shreveport, Louisiana
45. Reno, Nevada
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44. Salisbury, Maryland
43. Jackson, Mississippi
42. Longview, Texas
41. Greeley, Colorado
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40. San Francisco
39. Laredo, Texas
38. Ogden, Utah
37. Huntsville, Alabama
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36. Myrtle Beach, South Carolina
35. Spokane, Washington
34. Portland, Oregon
33. Pensacola, Florida
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32. Salt Lake City
31. Lubbock, Texas
30. Corpus Christi, Texas
29. Waco, Texas
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28. Lakeland, Florida
27. Killeen, Texas
26. Port St. Lucie, Florida
25. Houston
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24. Nashville, Tennessee
23. Colorado Springs, Colorado
22. Denver
21. Honolulu (Urban)
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20. Ocala, Florida
19. Provo, Utah
18. Palm Bay, Florida
17. Beaumont, Texas
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16. Boise City, Idaho
15. Jacksonville, Florida
14. Lafayette, Louisiana
13. Deltona, Florida
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12. Dallas
11. Boulder, Colorado
10. Tampa, Florida
9. Phoenix
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8. Santa Cruz, California
7. Naples, Florida
6. Crestview, Florida
5. Cape Coral, Florida
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4. San Antonio
3. North Port, Florida
2. New Orleans
1. Austin, Texas
Methodology: For this piece, GOBankingRates looked at the 200 largest metro statistical areas (MSA) according to the real estate market and found the following 10 factors. For each MSA, GOBankingRates found (1) a one-year percentage change in home value, (2) a one-year change in home value in USD, (3) a two-year percentage change in home value, (4) a two-year change in home value in USD, (5) for-sale inventory, (6) mean days from listing to pending, (7) mean list-to-sale ratio, (8) mean days from pending to close, (9) share of listings with a price cut, and (10) mean price cut. All data was sourced from Zillow’s June 2024 data. All 10 factors were then scored and combined with the highest score being the worst housing markets . In final calculations, factors (1), (2), (9) and (10) were weighted 2x and factor (5) was weighted 0.5x. All data was collected and is up to date as of Jul. 29, 2024.
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This article originally appeared on GOBankingRates.com : 50 Worst Housing Markets in the US for Growth