Yahoo Finance7 Worst States To Buy Property in the Next 5 Years, According to Real Estate Agents

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There are many factors to consider when buying a home, and evaluating factors like cost of living, crime rate, climate change, local issues and property taxes can help you save money. Whether you’re saving to buy a house, waiting for mortgage rates to fall or planning a big move in the next few years, researching the market now can help you decide where to invest later.
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“While no one can predict the market with absolute certainty, the patterns we’re seeing now offer some valuable clues,” said Yawar Charlie, estates director of Aaron Kirman Group at Christie’s International Real Estate and cast member of CNBC’s “Listing Impossible.”
Based on current market trends, GOBankingRates spoke with experts who shared which states to avoid buying property in the next five years and why.
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California
Stunning scenery, a vibrant culture and near-perfect weather make California so appealing, but the affordability is an issue.
“As a real estate broker in Los Angeles, I’ve observed some trends that suggest certain states might become less attractive for homebuyers over the next five years,” Charlie told us.
“It’s not just the high cost of living here that’s a problem. The state also struggles with issues like wildfires and droughts, which can make homeownership even more challenging and expensive,” he explained.
“Additionally, the tech boom, especially in areas like the Bay Area, has driven housing prices to astronomical levels, pushing many to seek refuge in more affordable states.”
Rachel Stringer, a Realtor at Raleigh Realty, added, “Demand continues to outpace supply, keeping inventory tight drastically.
“This supply crunch, coupled with slow wage growth, raises affordability concerns over time,” she explained. “As costs rise faster than incomes, keeping up with mortgage payments could become increasingly difficult.”
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Florida
For many retirees, Florida is a sunny paradise, but one bad storm can quickly make things a nightmare.
“The state’s location makes it extremely vulnerable to hurricanes and rising sea levels driven by climate change,” Stringer told us.
“Serious considerations include rebuilding costs, disruptions and escalating insurance premiums due to storm damage. Coastal properties may lose substantial value if they become uninhabitable due to rising sea levels.”