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Some places are fantastic for investing, while others might be best to avoid for now.
Heres what he had to say about the five cities that could be tough for real estate investment.
What does this mean?
), theres still reason to pause before considering investment.
The citys economy isnt strong, which means jobs can be harder to find.
All of this adds up to make Detroit amore difficult placeto buy property right now.
Heberer said its a less than desirable place to live or invest.
Gary, Indiana
Gary is another city that might give you pause on investing right now.
Heberer pointed out, Large economic strugglesand a shrinking population have left most properties devalued.
Lets break that down.
When a city has economic struggles, it means businesses are closing and people are losing jobs.
Add into the mix, a population in decline, and its not a great combination.
After all, when people leave a city, there are fewer people to buy or rent homes.
These problems have caused property values to go down in Gary.
This means houses are worth less money now than they used to be.
In other words, there are lots of empty houses, but not many people want to buy them.
Add to the mix that Clevelands economy is also having problems.
When a citys economy is weak, its harder for people to afford homes.
The water crisis in Flint is obviously a big problem, leaving residents with water thats unsafe to drink.
It begs the question: Would you want to buy a house somewhere you couldnt safely drink the water?
On top of that, Flints economy isnt thriving.
When Heberer saysproperty value growthis at a standstill, he means that house prices arent going up.
Of course, people hope their house will be worth more in the future than when they bought it.
In Flint, that might not happen anytime soon.
Youngstown, Ohio
Last on our list is Youngstown.
There is not much planning for current development or gentrification that would increase the current situation.
Youngstown used to be abig industrial city, with lots of factories and jobs in manufacturing.
But many of those jobs have gone away, and people have been leaving the city.
When a city loses jobs and people, its usually bad news for the housing market.
Heberer also mentions that there isnt much planning forcurrent development or gentrification.
This means the city isnt doing much to attract new businesses or improve neighborhoods.
Without these kinds of improvements, its hard for property values to go up.
Just because these places are having trouble now doesnt mean they always will.
Another good thing to remember is that real estate is all about location, location, location.
Even in cities that are struggling overall, there might be some neighborhoods that are doing better.
And sometimes, cities that are having problems now can turn things around in the future.
The most important thing is to do your homework before buying property anywhere.
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