This article looks at the top 20 worst-performing housing markets in the United States. If you want to skip the detailed analysis, you can go directly to the next page. Five Worst performing housing market in the US.
What’s happening in the US real estate market?
U.S. real estate activity improved in February, with existing home sales reaching a seasonally adjusted annual rate of 4.38 million units. Existing home sales rose 9.5% in February, the highest monthly increase since February 2023, the National Association of Realtors reported. Sales remained unchanged in the Northeast, while sales increased in the West, South, and Midwest. Sale. However, sales nationwide decreased compared to the previous year. Housing inventory as of February was 1.07 million units, an increase of 10.3% compared to the same month last year.
Home sales in the Northeast were weak in February due to inventory constraints, but home prices were strong. Regional patterns related to home prices showed increases in all regions of the United States in February. In the Northeast, the median price was recorded at $420,600, an increase of 11.5% since 2023. In the Midwest, median prices rose 6.8% year over year. At the same time, prices rose by 9.1% in the West and 4.1% in the South.
Comparison between regional housing markets
As reported by Realtor, a real estate platform, the real estate market in 2024 is likely to recover as mortgage interest rates, which have remained high due to monetary tightening, will decline. However, inventory for sale remains low. As of December 2023, inventories were on average 54.5% below pre-pandemic levels.
With low inventory and limited affordability, buyers continue to search the affordable housing market. The growing popularity of low-priced areas is putting pressure on inventory and causing prices to rise rapidly. These locations offer more amenities than many other metropolitan areas, and buyers are drawn to lower-priced markets where they can enjoy lifestyle comforts without spending as much money. is shown.
Santa Maria-Santa Barbara was identified as the most emerging market in the Wall Street Journal/Realtor.com Emerging Housing Market Index, with a median list price of $1.795 million in December 2023, the most emerging market in the nation. This was approximately 4.5 times the value. Other emerging markets were lower priced and located in the Midwest, South, and Northeast. This points to a trend that indicates a rising housing market is either actually cheaper or prices are so high that affordability is no longer a concern for buyers in the market. Additionally, these markets sell at a fast pace, meaning that homes stay on the market for long periods of time even when prices are rising. On the other hand, properties listed in poor housing markets sit on the market longer before buyers show interest.
Another aspect that Santa Barbara’s western high-priced market and other rising affordability markets have in common is how inventory for sale decreased while homeowners were reluctant to sell their homes during the early days of the pandemic. It’s true. This increased competition among buyers looking for mid-priced homes, causing prices to soar. For example, 62% of Santa Barbara homes were priced at $1 million or more in December 2019, but as less expensive inventory is rapidly pursued and makes up a lower percentage of for-sale inventory, it will become more expensive in December 2023. In March, that changed to 71%. Conversely, properties in the worst-performing markets do not increase in price. Falling prices in such markets are a sign of weakness and lack of growth. Buyers find this unattractive because they want the home to maintain its value even if it doesn’t appraise.
Mid-sized markets attract many buyers because they combine big-city amenities with a small-town feel. Sixteen of the top 20 emerging housing markets have a population of less than 500,000 people. These areas have less congestion and shorter commute times, but the job market appears to be stronger than average. Unemployment rates in hot markets like Concord, Manchester-Nashua, and Portland-South Portland are below national levels.
Purchase promotion by home builders
American home builders continue to meet the needs of diverse buyers in desirable locations across the United States. Famous builders include Dream Finders Homes, Inc. (NASDAQ:DFH), Lennar Corporation (NYSE:Len), and Beazer Homes USA, Inc. (NYSE:BZH). Let’s take a look at what these companies have been up to.
Dream Finders Homes, Inc. (NYSE: DFH) constructs single-family homes in the Southeast, Mid-Atlantic, and Midwest. On March 21, Dream Finders Homes (NYSE: DFH) announced a new home community in Lakewood Ranch, Florida. This community’s ideal location provides access to downtown Sarasota and Siesta Key. Community sales are expected to begin in early April. Pricing for Dream Finders Homes, Inc. (NYSE: DFH) new homes will also be published when community sales begin.
Lennar Corporation (NYSE:LEN) is an American homebuilder that builds affordable, active adult housing. We are also working on the development of high-quality apartment rental properties. On April 2, Lennar Corporation (NYSE:LEN) reported that it has begun sales in its first community in Buffalo City. The Settlers Brook community offers access to downtown Buffalo’s shopping and dining options. Residents can enjoy recreation at nearby Buffalo Lake and local parks. Those seeking the feel of a small community with suburban amenities should consider living in a new community. Home prices in Settlers Brook start in his $300,000 range.
Beazer Homes USA, Inc. (NYSE:BZH) is a leading home builder in the United States. It currently builds homes in multiple states, including Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. On March 19, Beazer Homes USA, Inc. (NYSE:BZH) reported that it had acquired 17 acres of land in Apex for a new community called The Summit. 86 townhomes and 16 single-family homes will be part of the summit. These homes will be designed to be 40% to 50% more efficient than typical new construction homes. Homes in this area are expected to go on sale in the fall of 2025.
Now that we’ve analyzed the U.S. housing market, let’s move on to the top 20 worst-performing housing markets in the country.
America’s 20 worst-performing housing markets
Our methodology:
To create our list of the top 20 worst-performing housing markets in the U.S., we sourced metro-level data from Zillow, a leading real estate source. We chose the year-over-year growth rate of median list prices as of February 2024 as our primary metric to depict the weak housing performance in metropolitan areas. Therefore, the worst-performing real estate markets are those where home prices have declined the most over the past year without any positive increases.
Additionally, we supplemented this metric with the number of days it takes for a home to go on a pending sale. This represents the time local properties spend on the market before going under contract. Long hold times indicate a depressed market where high home prices and unattractive locations are reducing demand. This is because attractive properties with high prices will not remain on the market for a long time.
America’s 20 worst-performing housing markets
20. Binghamton
YoY change in median list price: -1.3%
Days to hold: 10.0
Binghamton is a city in New York City that is not doing well in its housing market. This is clear from the fact that as of February, the median list price of subways was down 1.3% from the previous year.
19. Lubbock
YoY change in median list price: -1.4%
Days to hold: 24.0
Lubbock is located in Texas. Although the city has seen its median list price decline for the year, it takes 24 days for a local property to finally go on hold.
18. Hokko
YoY change in median list price: -1.7%
Days to hold: 37.0
Northport is based in Florida and ranks as one of the worst performing housing markets in the United States. Local properties tend to spend 37 days on the market before being put on hold, indicating a weak market.
17. Colorado Springs
YoY change in median list price: -1.9%
Days to hold: 19.0
As of February, the year-over-year change in median list price in Colorado Springs was -1.9%. As a result, home prices are falling and the city is considered one of the worst-performing housing markets.
16. Miami
YoY change in median list price: -2.0%
Days to hold: 35.0
Local listings in Miami will be placed on hold within 35 days. This indicates that the property will not sell quickly. Furthermore, prices have fallen in urban areas as well.
15. Vallejo
YoY change in median list price: -2.3%
Days to hold: 12.0
Vallejo is located in Solano County, California. The city ranks among the worst-performing U.S. housing markets since February, when the median list price fell 2.3% year-over-year.
14. Visalia
YoY change in median list price: -2.6%
Days to hold: 15.0
Visalia is based in California’s agricultural San Joaquin Valley. The city has one of the worst performing housing markets, as evidenced by a 2.6% decline in median list prices since 2023.
13. Evansville
YoY change in median list price: -3.0%
Days to hold: 14.0
As of February, the median list price in Evansville has fallen 3.0%. Therefore, this city ranks among the 20 worst performing cities in the US housing market.
12. Corpus Christi
YoY change in median list price: -3.3%
Days to hold: 40.0
Corpus Christi property listings take a full 40 days to be placed on hold. Therefore, Corpus Christi’s housing market downturn ranks as one of the worst-performing housing markets in the country.
11. Springfield
YoY change in median list price: -3.3%
Days to hold: 13.0
Zillow reports that the median list price in Springfield has fallen 3.3% from last year. The decline in house prices indicates a slump in the real estate market.
10. Urban Honolulu
YoY change in median list price: -3.9%
Days to hold: 23.0
Properties in urban Honolulu tend to be on the market for 23 days and then put on hold. Additionally, the median list price recorded a 3.9% year-over-year decline.
9. Killeen
YoY change in median list price: -4.1%
Days to hold: 35.0
The city of Killeen is located in Bell County, Texas. The city has been named one of the worst-performing housing markets in the U.S., as home prices have fallen over the years and local properties take five weeks to hit the market.
8. Worcester
YoY change in median list price: -4.4%
Days to hold: 9.0
Worcester is located in Massachusetts and is another underperforming housing market. As of February, the median list price in the city had declined 4.4% year over year.
7. tyler
YoY change in median list price: -5.3%
Days to hold: 49.5
It takes 49.5 days for properties on the market in Tyler to go on hold. The situation in the local housing market has worsened further, with house prices in the city falling by 5.3%.
6. Tulsa
YoY change in median list price: -6.0%
Days to hold: 21.0
Tulsa is based in Oklahoma. As of February, the city’s median list price was down 6% from last year.
Click to keep reading to see the five worst-performing housing markets in the United States.
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Disclosure: None. 20 Worst performing housing market in the US Originally published on Insider Monkey.
