Patrick Villanova wrote an article today
about the ten cities with the highest vacancy rates for housing.
At first thought this makes an investor think they could find
a deal, a steal, a great rental property. However the reasons
why there are houses empty in these different cities overlap
with: employment, crime, natural disasters, cost of utilities...
his article here today https://finance.yahoo.com/news/cities-where-housing-vacancy-rates-120000612.html
The reasons behind many of these houses remaining empty and not for sale are complicated. Seven of the cities are in Florida, several others in the south. I do not believe the numbers reflect owners with low interest rates holding on to empty houses waiting for generational gains. Many of the houses are older, need repairs, suffered from natural disasters, but I believe there are good houses, properties that can become units for first time home buyers and investors to repair and hold for long term rentals.
New Orleans, LA
In 2022, New Orleans vacancy rate is the highest of 343
cities – 22.9%. Over the previous five years, the city saw its population
decrease by 4.2%. In total, there were 44,746 vacant housing units in 2022,
nearly 8,000 more than five years earlier.
Flooding, politics, crime rates... Bring back tourism and I would buy
here due to the culture and restaurants. Latoya Cantrell needs to get eyes on the ball. Put cameras and audit every transaction in the permits and planning department. Audit the lifestyles of every employee and fire at will. The General Plan must preserve and plan to save the city's historic fronts. Get Federal money, they owe Louisiana.
2. Tuscaloosa, AL
Tuscaloosa home to the University of
Alabama, had a vacancy rate of 22.5%. Despite a minimal population increase of
0.3% from 2017 to 2022, the city reported 12,050 empty housing units by the end
of that five-year period.
There are Jobs in Tuscaloosa: manufacturing, health care
and social assistance, and educational services. This makes properties valuable. But the city has high crime rates. It is a charming college town. I would invest here.
3. Detroit, MI
Detroit's vacancy rate is 21.9%. The city's population
diminished by 6.0% over five years, with 68,048 housing units vacant in 2022.
However, the city had approximately 31,000 more vacant housing units at the
start of that five-year period compared to 2022.
Highest homicide rate (crime), cheap, low paying jobs, snow/ice,
higher utility cost, flooding, storms, and earthquakes. Natural hazards cost money. Very low cost housing in the $80000 range. I would buy in Bloomfield Hills but Detroit is too cold and rough for me.
4. Pompano Beach, FL
10 miles north of Fort Lauderdale, Pompano Beach's vacancy rate was 21.7%. The city saw its population grow by just 0.8%
between 2017 and 2022, to end up with 13,376 unoccupied housing units.
Flooding, can’t get insurance, winds, heavy traffic, higher
crime rate, no jobs seem to make this Florida town a no for housing. Even snow birds suffering in the Artic Storm this week frown on this move.
5. Fort Lauderdale, FL
Fort Lauderdale, 21.4% of housing units were vacant in 2022.
While the city's population grew by 0.9% during the five-year period that
started in 2017, there were 21,751 vacant residences in 2022.
So many Florida towns on the list. DeSantis fix your home state. Florida was once booming. Weather and climate change are tearing off roofs and flooding towns - this is a major planning mess. There are many jobs here in marine, manufacturing, finance, insurance, real estate, high
technology, avionics/aerospace, film and television production. Fort Lauderdale has a twenty percent higher cost of living than other Florida cities, crime rate
of 41 per one thousand residents, Fort Lauderdale has one of the highest crime rates in
America. Problems I cannot overcome alone.
6. Clearwater, FL
Clearwater vacancy rate of 20.7% in 2022 is identical to five years earlier when 20.8% of housing units were empty. While
the city's population grew by 1.0% between 2017 and 2022, there were 12,641
vacant housing units by the end of that five-year stretch.
Crime stats high, hot/humid in summer, white sand beaches, Pinellas
county highest number of homeless in FL, tornadoes,
hurricanes, and storm surges. The State of Florida needs to get this beautiful place back up to what it once was.
7. Paradise, NV
Paradise, 20.5% of housing units were vacant in 2022, while
the population declined by 21.0% between 2017 and 2022. There were 19,210 units
of unoccupied housing by the end of that five-year period.
It gets to 115 degrees for a couple months, water shortages, high insurance costs, high crime, high utility
cost. However there are job in casinos. Not for me.
8. Birmingham, AL
Alabama's largest city lost 7.7% of its residents between 2017
and 2022, with a tailing vacancy rate of 18.9%. In total, Birmingham reported
20,644 empty residences in 2022 or about 3,000 fewer than the city recorded
five years earlier.
Causes: hurricanes, tornadoes, and
floods; high crime rates. There are jobs in Birmingham in Retail, Finance
and insurance, Technical, scientific, and professional services.
9. Jackson, MS
In 2022, Jackson had a vacancy rate of 18.7%. The city faced a
notable population reduction of 10.4% between 2017 and 2022, with 14,325 empty
housing units by the end of that period – nearly 4,000 more vacants housing
units than five years earlier.
Highest crime rates, it’s the SOUTH, 61% natural disaster risk,
flooding, no water with Escherichia coli contamination and the City knew about it, tornadoes, Gulf
Coast hurricanes make this also a no for me.
10. Cape Coral, FL
Cape Coral recorded the 10th-highest vacancy rate in the country
with 18.4% homes sitting empty in 2022. Despite the city's robust population
growth of 11.5% from 2017 to 2022 – more than any other city in the top 10 –
there were 18,392 vacant
four major hurricanes have hit outside of Cape
Coral's city limits, including Donna, Charley, Irma, and Ian. Hurricane Ian has had a significant impact on local businesses, with many
storefronts destroyed and roofs torn. Special
flood hazard zones, can’t get insurance, put your house on stilts, have a metal
roof and no trees near the house. House prices dropping 3.6% Humid and hot in summer. Its a maybe if I can get my house above flood levels.
All these locations allow a home buyer to do a 203k FHA loan which would give them $30000 in improvements to get the house water tight, warm, have HVAC, fix a roof - but not a total gutting rehabilitation. All of these cities have affordable houses. If you want a list of the vacant houses in a certain city, give me a call, you may need to track down the owner. Next try to determine the valuation with comparable sales to make an offer to the owner of record. You need a contractor to look inside and an inspector as a vacant house is going to have things that are not working.
