You’ve decided to buy a new home. While ideally, you may want to focus solely on discovering the perfect house, there’s lots more to consider. For example, location, cost of living, climate risks, and even local economic conditions all play a role in determining whether your investment will leave you “happily ever after” or in the depths of despair.
Below are several states that experts suggest you might want to think twice about before buying property over the next five years.
California: Beauty Comes at a High Price
California’s breathtaking landscapes and year-round mild weather have always been an attraction. But living in the Golden State comes with its challenges. According to Yawar Charlie, estates director at Aaron Kirman Group, the cost of living in California is sky-high, and it’s only getting worse. Beyond the financial strain, California experiences environmental challenges, including wildfires and droughts. As appealing as California might be, the high costs—both financial and environmental—could make it a less attractive option for homebuyers.
Florida: Paradise with a Price
Florida’s warm climate and scenic beaches have always made it a retirement destination. However, Rachel Stringer, a realtor at Raleigh Realty, warns that the state’s vulnerability to hurricanes and rising sea levels could indicate trouble for homeowners. “Serious considerations include rebuilding costs, disruptions, and escalating insurance premiums due to storm damage,” Stringer notes. The risk of coastal properties becoming uninhabitable due to climate change is a significant concern. What might seem like paradise today could become a costly burden tomorrow.
Illinois: Financial Struggles and High Taxes
Illinois is another state where potential homebuyers should tread carefully. While the state boasts major cities and immense farmlands, its financial outlook is concerning. With some of the highest property taxes in the country, combined with a high crime rate and budget deficits, the state is becoming increasingly unattractive.
Louisiana: Climate Risks and Economic Hurdles
Known for its vibrant culture and rich history, Louisiana might seem like an appealing place to settle down. But Tony Mariotti, founder of RubyHome, highlights significant risks. “Louisiana is highly susceptible to climate change impacts, such as hurricanes and flooding,” Mariotti warns. These risks lead to higher insurance costs and potential property damage. In addition to the concerns of lower job growth and infrastructure challenges, it becomes clear that Louisiana might not be the best long-term investment.
New Jersey: High Costs and Economic Uncertainty
New Jersey’s proximity to New York City has always been a draw, but recent trends suggest it might be losing its appeal. Charlie points out that the state is dealing with an exodus of major corporations, which impacts job availability. Combined with high property taxes and health insurance premiums, the financial strain on residents is growing. The daily grind of commuting into New York City through congestion and traffic only adds to the frustrations.
New York: Costly Living and Infrastructure Woes
New York is infamous for its high cost of living, but there’s more to worry about than just the price tag. “Beyond the high property taxes, there’s the matter of aging infrastructure,” says Charlie. The state’s public transportation system, particularly in New York City, has been a constant source of frustration with its delays and breakdowns. The shift to remote work during the pandemic has also resulted in many people moving away from the city.
West Virginia: Declining Industry and Population Drain
West Virginia’s economy has always been tied to the coal industry. However, as that industry declines, so does the state’s appeal to homebuyers. Rachel Stringer notes that “as jobs dry up, the population drains in these small towns, leaving little demand for housing.” This makes it tough for homeowners to sell their properties at a fair price.
Home Sweet Home
Choosing where to buy a home is one of the most significant decisions you’ll make. While every state has its charm, some come with more risks than others. By staying informed about market trends and potential challenges, you can make a smarter decision that will pay off in the long run.
