{"id":44519,"date":"2026-04-06T18:34:09","date_gmt":"2026-04-06T18:34:09","guid":{"rendered":"https:\/\/christiancorner.us\/index.php\/2026\/04\/06\/want-to-avoid-bad-investments-these-housing-markets-carry-the-greatest-risks-2\/"},"modified":"2026-04-06T18:34:30","modified_gmt":"2026-04-06T18:34:30","slug":"want-to-avoid-bad-investments-these-housing-markets-carry-the-greatest-risks-2","status":"publish","type":"post","link":"https:\/\/christiancorner.us\/index.php\/2026\/04\/06\/want-to-avoid-bad-investments-these-housing-markets-carry-the-greatest-risks-2\/","title":{"rendered":"Want to avoid bad investments? These housing markets carry the greatest risks"},"content":{"rendered":"<p>\n<\/p>\n<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\" id=\"post-content\" :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n                            <!-- Table of contents: mobile --><\/p>\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n                    <button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n                        <default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><default:path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/default:svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">in this article<\/p>\n<p>                    <\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">While real estate <\/span><span data-preserver-spaces=\"true\">often described<\/span><span data-preserver-spaces=\"true\">    While being the best way to make money, it can also be the fastest way to lose it. Making a good investment often depends on location. choose good and ride <\/span><span data-preserver-spaces=\"true\">equity<\/span><span data-preserver-spaces=\"true\">    Wave of financial freedom. Conversely, a poor choice can land you in money trouble.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Today&#8217;s investment decisions involve much more than jobs, crime and future growth. <\/span><span data-preserver-spaces=\"true\">Insurance shocks, climate risks and utility costs can destroy net income <\/span><span data-preserver-spaces=\"true\"><\/span><span data-preserver-spaces=\"true\">    Possibility <\/span><span data-preserver-spaces=\"true\">For <\/span><span data-preserver-spaces=\"true\">Appreciation<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">    Aggregating county-level data from researchers like ATTOM and the First Street Foundation sheds light on counties where attractive investments may hide significant risks.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">according to<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.attomdata.com\/news\/market-trends\/home-sales-prices\/2025-year-end-housing-impact-report\/\"><span data-preserver-spaces=\"true\">    atom<\/span><\/a><span data-preserver-spaces=\"true\">Analysis of 594 U.S. counties, particularly vulnerable counties, showing differences from normal <\/span><span data-preserver-spaces=\"true\">boom and bust<\/span><span data-preserver-spaces=\"true\">    Four risk factors were taken into account in the suspect analysis: <\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">criminal activity<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">unemployment rate<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">home affordability<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Share of properties under water (at least 25% above the mortgage balance market)<\/span><\/li>\n<\/ul>\n<h2><span data-preserver-spaces=\"true\">There are some dangerous counties in California<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The riskiest market with a population over 1 million is Riverside County, California, with 2.4 million residents. It ranks 29th out of all markets analyzed at the national level. Here, buyers spend around 66% of their average local salary on home buying costs. With Q4 average home price<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/2832\/riverside-county-ca\/\"><span data-preserver-spaces=\"true\">    $600,000<\/span><\/a><span data-preserver-spaces=\"true\">This is almost double the national average. Foreclosure was filed on one in 811 properties, double the national rate.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Nationally, a typical homeowner spends less than<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.nytimes.com\/2025\/10\/23\/realestate\/are-you-paying-more-than-30-of-income-on-housing-costs.html\"><span data-preserver-spaces=\"true\">    one third<\/span><\/a><span data-preserver-spaces=\"true\">    of their annual income on the cost of purchasing the house, and<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.prnewswire.com\/news-releases\/us-foreclosure-activity-increases-in-2025-302662322.html\"><span data-preserver-spaces=\"true\">    1 in every 1,274 households<\/span><\/a><span data-preserver-spaces=\"true\">    Foreclosure is in process by the fourth quarter of 2025. About 65.7% of the 364 counties analyzed by ATTOM<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.attomdata.com\/news\/market-trends\/home-sales-prices\/2026-rental-affordability-report\/\"><span data-preserver-spaces=\"true\">    January 2026 Affordability Report<\/span><\/a><span data-preserver-spaces=\"true\">    Buying a home requires more than a third of the buyer&#8217;s salary.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The takeaway for investors here is clear: If you can&#8217;t easily invest in an expensive market, don&#8217;t bother. Taking loans and carrying high leverage, despite the appreciation of home prices and prestigious homes, will lead you into a world of trouble. It&#8217;s just not worth it.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">San Bernardino (<\/span><span data-preserver-spaces=\"true\">fourth most risky<\/span><span data-preserver-spaces=\"true\">    The larger county, 49th overall) is also volatile, with one in every 777 properties receiving a foreclosure filing and buyers spending more than 54% of their salary <\/span><span data-preserver-spaces=\"true\">Home<\/span><span data-preserver-spaces=\"true\">    Cost.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Other California counties at risk include Fresno and Contra Costa, which have high unemployment rates.<\/span><\/p>\n<div class=\"justify-center \" x-data=\"{ IabAdad_block_: popAd(('r720x90'), '1') }\" :class=\"IabAdad_block_.linkURL ? 'flex pt-8' : 'hidden'\">\n<div class=\" hidden sm:block\"><\/div>\n<div class=\"block sm:hidden\">\n          <img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r320x50\" :alt=\"IabAdad_block_.r320x50Alt\" loading=\"lazy\" fetchpriority=\"low\"\/>\n        <\/div>\n<\/p><\/div>\n<h2><span data-preserver-spaces=\"true\">&#8220;Affordable&#8221; cities are fraught with risk<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Compared to West Coast counties, Philadelphia County is relatively affordable, but a shocking 8% of owners there are underwater on their mortgage, with the foreclosure rate being three times the national average.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Philly is known as an investor-oriented city. By 2023, large corporate investors owned 8.8% of single-family rentals, and in specific distressed neighborhoods, accounted for 20% of sales of investor-purchased homes, according to<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.philadelphiafed.org\/community-development\/housing-and-neighborhoods\/ownership-profile-of-single-family-residence-properties-in-philadelphia-large-corporate-investors#:~:text=The%20*Ownership%20Profile%20of%20Single-Family%20Residence%20Properties,high%20as%20in%20some%20real%20estate%20markets.\"><span data-preserver-spaces=\"true\">    Philadelphia Federal Reserve Bank<\/span><\/a><span data-preserver-spaces=\"true\">. There is heavy investor presence<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.inquirer.com\/real-estate\/housing\/investor-real-estate-rental-homeowner-philadelphia-drexel-reinvestment-fund-20221013.html#:~:text=In%20these%20cities&#039;%20most%20distressed%20neighborhoods%20--,the%20Nowak%20Metro%20Finance%20Lab%20at%20Drexel.\"><span data-preserver-spaces=\"true\">    evicted owner-occupiers<\/span><\/a><span data-preserver-spaces=\"true\">. home ownership rate<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.philadelphiafed.org\/community-development\/housing-and-neighborhoods\/affordability-challenges-and-barriers-to-homeownership-in-philadelphia#:~:text=Philadelphia&#039;s%20homeownership%20rate%20fell%20from,households%20are%20at%2057.4%20percent.\"><span data-preserver-spaces=\"true\">    Fell from 57.5% to 52.4%<\/span><\/a><span data-preserver-spaces=\"true\">    Between 2005 and 2023.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This is a classic red flag for investors. Prospective landlords from nearby New York and New Jersey flocked to the city lured by the prospect of cheap housing and good rents, paying little attention to employment or the large number of investor-owned properties that destabilized the neighborhood&#8217;s character. When the labor-intensive hassle of managing these properties \u2013 raising rent, evicting tenants, making repairs \u2013 became too much and their <\/span><span data-preserver-spaces=\"true\">cash flow<\/span><span data-preserver-spaces=\"true\">    Projections bleak, they put properties into foreclosure, destroying their own credit and further damaging the neighborhood.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Louisiana Southern leads worst performers<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Seven of the 10 counties with the highest underwatering rates were in Louisiana, according to <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.attomdata.com\/news\/market-trends\/home-sales-prices\/q2-2025-housing-impact-report\/\"><span data-preserver-spaces=\"true\">ATTOM&#8217;s Q2 2025 data<\/span><\/a><span data-preserver-spaces=\"true\">Led by Rapides Parish, where 17.3% of households are <\/span><span data-preserver-spaces=\"true\">were owned<\/span><span data-preserver-spaces=\"true\">    Far more than the value of the property. Other southern poor performers were Dorchester County, South Carolina; Charlotte County, Florida; and Kaufman County, Texas.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Florida <\/span><span data-preserver-spaces=\"true\">is full<\/span><span data-preserver-spaces=\"true\">    investment with landmines<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Florida is slipping into &#8220;no-go&#8221; territory for entirely different reasons: <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/news\/florida-most-counties-risk-falling-115900847.html\"><span data-preserver-spaces=\"true\">16 out of 50 US counties <\/span><\/a><span data-preserver-spaces=\"true\">Home prices located there are most at risk of falling, more than in any other state. Its riskiest markets are Charlotte County and St. Lucie County on the Gulf Coast.<\/span><\/p>\n<p><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/news\/trends\/florida-home-prices-falling-attom\/\"><span data-preserver-spaces=\"true\">realtor.com<\/span><\/a><span data-preserver-spaces=\"true\">    Commenting on the findings, senior economist Joel Berner said, &#8220;Many Florida homeowners unknowingly bought at the peak of the market following the sharp rise in prices in 2021 and 2022 and are now at risk of seeing their home value decline as the market continues to soften.&#8221;<\/span><\/p>\n<p><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.attomdata.com\/news\/most-recent\/foreclosure-rates-by-state\/\"><span data-preserver-spaces=\"true\">ATTOM&#8217;s 2026 Criminal Report Ranks<\/span><\/a><span data-preserver-spaces=\"true\">    The state is in the top five in terms of foreclosure rates (No. 1 is Indiana), with more than 4,500 properties in foreclosure as of February, indicating significant market stress for investors. Unlike many other regions, much of Florida&#8217;s risk comes from increased insurance costs and climate events, both of which can increase expenses and reduce investment returns or home values.<\/span><\/p>\n<aside class=\"my-10 xl:my-4\">\n<p class=\"font-bold mt-0 mb-4 text-xl text-slate capitalize\">You might also like<\/p>\n<\/aside>\n<p><span data-preserver-spaces=\"true\">First Street Foundation 12th Annual<\/span> <span data-preserver-spaces=\"true\">\u201c<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/assets.riskfactor.com\/media\/The%2012th%20National%20Risk%20Assessment.pdf\"><span data-preserver-spaces=\"true\">Property prices are in trouble<\/span><\/a><span data-preserver-spaces=\"true\">The report predicts Florida and Texas will experience the largest declines in property values \u200b\u200bin the country, citing Broward, Duval, Miami-Dade, Pasco, Hillsborough, Palm Beach and other expensive enclaves as particularly vulnerable to climate-related value declines because insurance costs are higher.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">&#8220;The traditional drivers of real estate value \u2013 location, economy and amenities \u2013 are being transformed by a new calculus that must account for long-term environmental vulnerability,&#8221; the First Street Foundation report said.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Cash flow shortage: falling rent<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">As another key risk metric, investors should consider falling rents. Rising insurance costs and foreclosures, coupled with low employment in many areas, put pressure on rental income as landlords struggle to cover expenses. ATTOM&#8217;s <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.attomdata.com\/news\/market-trends\/single-family-rental\/2026-single-family-rental-market-report\/\"><span data-preserver-spaces=\"true\">2026 Single-Family Rental Market Report<\/span><\/a><span data-preserver-spaces=\"true\">    shows that in more than half of the tracked counties, rents for three-bedroom homes are projected to decline between 2025 and 2026. When rents stagnate or decline while acquisition costs rise, net yields fall, and investors find it harder to maintain positive cash flow.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Additionally, rental yields have fallen by 3% in high-cost coastal counties in Florida, California, Tennessee and Virginia. <\/span><span data-preserver-spaces=\"true\">To<\/span><span data-preserver-spaces=\"true\">    4%<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">final thoughts<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Cash flow analysis is now less simple. Comparing properties across counties requires weighing foreclosures, taxes, employment, wage growth, and insurance, as similar-looking properties can have very different outcomes.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">One major theme that emerged is investing in the Midwest and Northeast <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/news\/florida-most-counties-risk-falling-115900847.html\"><span data-preserver-spaces=\"true\">Nine of the 50 safest counties are in Wisconsin and the others in states like Minnesota and Ohio<\/span><\/a><span data-preserver-spaces=\"true\">Seems like a safe proposition. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Add interest rates as another wild card into the proposition, and it&#8217;s possible to make an argument for investing in an area where cash flow is low on paper based on costs and rental income.<\/span><span data-preserver-spaces=\"true\">but other<\/span><span data-preserver-spaces=\"true\">    Factors like foreclosure rates, employment, and climate create a more stable environment. If the purchase facility is provided in an all-cash scenario with a view to refinancing when rates fall, the long-term outlook may be better, albeit less short-term. <\/span><span data-preserver-spaces=\"true\">cash-on-cash return<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>in this article While real estate often described While being the best way to make money, it can also be the fastest way to lose it. Making a good investment often depends on location. choose good and ride equity Wave of financial freedom. Conversely, a poor choice can land you in money trouble. Today&#8217;s investment<\/p>\n","protected":false},"author":1,"featured_media":44523,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60],"tags":[2481,1411,12338,3100,490,3086,2066,1091],"class_list":["post-44519","post","type-post","status-publish","format-standard","has-post-thumbnail","category-meditation","tag-avoid","tag-bad","tag-carry","tag-greatest","tag-housing","tag-investments","tag-markets","tag-risks"],"_links":{"self":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/44519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/comments?post=44519"}],"version-history":[{"count":1,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/44519\/revisions"}],"predecessor-version":[{"id":44526,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/44519\/revisions\/44526"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media\/44523"}],"wp:attachment":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media?parent=44519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/categories?post=44519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/tags?post=44519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}