These ZIP CODES will CRASH HARDEST in 2022!の動画
Some ZIP codes will have a big HOUSING CRASH. Others are SAFE. How can a home buyer or real estate investor tell the difference?
The last Housing Crash brought homes prices down by 25% across America. And in some areas of the country values declined by as much as 70%. Many homeowners and real estate investors LOST EVERYTHING!
But not all areas lost everything. In fact many ZIP codes across Housing Markets like Dallas, Houston, and Washington DC didn’t experience any decline in home prices. In some cases these local real estate markets kept growing.
Why did some areas CRASH but others hold value? Poverty Rate and Appreciation in the Bubble. Neighborhoods that were higher poverty and had a bigger run up in prices ended up having the biggest decline in home values.
For instance, some areas of Dallas, TX had a 50% drop. But nearby wealthy suburbs such as Highland Park and Plano held their value.
Meanwhile – areas across the San Francisco Housing Market also had wide variations. Downtown San Francisco experienced manageable 15% declines, while nearby Oakland was down by as much as 60%
In this case it was previous price appreciation that explained things. Neighborhoods across San Francisco was a rapid run up in values had the biggest crash (like Oakland).
During the last Housing Crash ZIP codes that had 1) High Poverty Rate and 2) Rapid Appreciation ended up crashing by 44%. ZIPs with low Poverty and Appreciation only declined by 10%. Could a similar story play out in the upcoming 2021-2022 Housing Crash?
Home buyers and real estate investors would be wise to monitor these data points in their neighborhood. Luckily free public information from City Data and Zillow allows you to do just that.
Zillow Research: https://www.city-data.com/
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0:00 Your ZIP Code at Risk?
0:48 2007 Crash: Big Differences!
1:38 50% Decline…or No Crash AT ALL?
2:39 Back to Dallas, TX
3:15 High Poverty Rate = BIG CRASH
4:07 Relationship Still Relevant in 2022!
4:46 Higher Investor Demand in Poverty Areas
5:43 2ND DATA POINT that Matters (San Francisco)
6:53 Price Appreciation before the Crash
7:33 Rapid Appreciation = Speculation
8:03 Washington DC is a Great Example
8:47 44% Crash v. 10% Decline
10:09 FREE DATA using City-Data.com
11:10 20% Poverty Rate Threshold
11:37 Zillow Home Price Data by ZIP
12:50 5-Year Growth for EVERY ZIP in America
13:30 RISKY v SAFE Neighborhoods for Real Estate
14:01 Concluding Thoughts!
#HousingBubble #HousingCrash #Dara