I’m a Real Estate Investor: 11 Southern Cities Where You Should Avoid Buying Property

i’m a real estate investor: 11 southern cities where you should avoid buying property

happy couple standing next to for sale sign shaking hands with real estate agent

Real estate investors have always valued property in the South. The appeal is clear when you consider the vast amounts of open space, warm weather and beautiful scenery in many Southern cities. But when it comes to making the best investments, not every city is created equal. In fact, some places should just be avoided entirely.

GOBankingRates spoke to real estate investors about where they’re avoiding investing in the South. Here’s what they said.

Also here are 34 Southern cities where home prices are projected to spike in 2025.

For You: I’m a Real Estate Investor: 10 Places I Would Never Buy Property

Trending Now: Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup

i’m a real estate investor: 11 southern cities where you should avoid buying property

New Orleans River Paddle boat colorful sky stock photo

New Orleans’ Hurricane Risks Outweigh Rewards

The charm of New Orleans’ rich culture and history is undeniable. But if you’re investing in real estate here, you can’t afford to ignore the risk of hurricanes.

“New Orleans’ vulnerability to natural disasters and economic volatility dampens its appeal for multifamily investment,” said Graham Sowden, Chief Investment Officer (CIO) at RREAF Holdings, a firm that has overseen over $4 billion in multifamily transactions across the South.

Stephen Kovach, CEO at Global Advisers, said that New Orleans can be challenging because “post-pandemic recovery has been slower compared to other southern cities, impacting economic stability.”

Try This: Cheapest Places To Buy a Home in Every State

Learn More: 7 Locations Where Housing Prices Are Plummeting Post-Pandemic

i’m a real estate investor: 11 southern cities where you should avoid buying property

Louisiana Shreveport

Shreveport’s Declining Population Is a Concern  

“Economic stagnation and population decline pose challenges for multifamily investment in Shreveport,” Sowden said.

If you’re considering investing in real estate, few factors are as critical as the city’s population growth. If the populace shrinks, that means declining demand for housing and commercial properties.

Discover Next: Don’t Buy a House in These 5 US Cities That Have Shrinking Populations and Fewer Buyers

i’m a real estate investor: 11 southern cities where you should avoid buying property

Oklahoma City, Oklahoma, USA downtown skyline at twilight.

Louisiana and Oklahoma’s Weak In-Migration

Arvind Cheruku, partner and CIO at Fulshear Central, warns against investing in Louisiana and Oklahoma altogether. “There aren’t many people moving into these states from California or Illinois or New York,” he said.

Cheruku also said that these states’ business environments “may not be conducive to investment growth.” Because of the harsh operating conditions, some investors are steering clear right now.

i’m a real estate investor: 11 southern cities where you should avoid buying property

Aerial shots of downtown Austin, Tx stock photo

Austin’s Overheated Market

Even the booming capital of Texas gives Cheruku pause these days. “I would currently be very careful and opportunistic when investing in Austin,” he said.

Cheruku believes “some of the price appreciations have been unrealistic and out of touch with the market.” This is a sign that the value is probably artificially inflated, which makes him cautious.

i’m a real estate investor: 11 southern cities where you should avoid buying property

Montgomery, Alabama, USA with the State Capitol at dawn.

Mobile and Montgomery’s Economic Headwinds

“Despite its strategic location, Mobile faces economic headwinds and demographic challenges that impact multifamily investment potential,” Swoden said.

Similarly, “Economic challenges and population trends impact multifamily investment prospects in Montgomery compared to other Southern markets,” he said.

Because of these reasons, the expert investors we spoke to are mainly avoiding these markets right now.

Explore More: Dave Ramsey: Why You Shouldn’t Pay Off Your Mortgage Early Even If You Can

i’m a real estate investor: 11 southern cities where you should avoid buying property

Jackson, Mississippi, USA skyline over the Capitol Building.

Jackson and Meridian’s Struggles

Sowden pointed to Jackson and Meridian, Mississippi as two cities presenting challenges for multifamily investment.

“With economic struggles and population decline, Jackson presents challenges for multifamily investment in the Southern region,” he said.

Kovach said that Jackson is also an issue because of its inadequate infrastructure and dependence on the public sector: “The city’s economy is heavily reliant on public sector jobs, which limits growth opportunities in other sectors.”

Likewise, “Economic challenges and demographic trends hinder multifamily investment potential in Meridian,” he said.

i’m a real estate investor: 11 southern cities where you should avoid buying property

Monroe is the eighth-largest city in the U.

Monroe’s Demographic Hurdles

Monroe, Louisiana is situated between Shreveport and Jackson, Mississippi, in what would seem to be the perfect spot. But Sowden said it still makes him hesitate.

“Despite its strategic location,” he said, “Monroe faces economic headwinds and demographic challenges that impact multifamily investment potential.”

i’m a real estate investor: 11 southern cities where you should avoid buying property

Gulfport Mississippi

Gulfport’s Stagnant Growth

Rounding out the list of cities to avoid, Sowden said that “Economic struggles and limited population growth pose challenges for multifamily investment in Gulfport, Mississippi.”

Check Out: 5 Types of Homes That Will Plummet in Value in 2024

i’m a real estate investor: 11 southern cities where you should avoid buying property

Aerial drone view of Birmingham, Alabama skyline with park and train station in the foreground.

Birmingham’s Slow Down

Kovach said that Birmingham has been “experiencing slower economic growth compared to other cities in the region. Challenges include a less diversified economy and lower levels of new business investment​.”

He said that even though there have been some efforts to improve economic inclusion, “the pace of change may not be sufficient to drive significant investment returns in the short term.”

i’m a real estate investor: 11 southern cities where you should avoid buying property

Young couple buying a new house.

Avoid Potential Pitfalls

By following the advice of Sowden, Kovach and Cheruku, investors can avoid pitfalls in an already difficult market. Just remember you should always do your own research before making any large investments.

More From GOBankingRates

    This article originally appeared on GOBankingRates.com: I’m a Real Estate Investor: 11 Southern Cities Where You Should Avoid Buying Property

    OTHER NEWS

    23 minutes ago

    Arch Manning makes push for Texas Longhorns to land five-star WR Dakorien Moore

    23 minutes ago

    PlayStation Fan Makes Awesome Discovery Inside a Random Dumpster

    23 minutes ago

    Minecraft's Tricky Trials Update Makes a Good Case for a Village Update

    23 minutes ago

    Sharks Free Agent Targets: Bruins' Jake DeBrusk Would Be A Perfect Fit

    23 minutes ago

    Oilers’ Kane travelling to Florida, ‘possibility’ to play in Game 5

    23 minutes ago

    It's Time For The Montreal Canadiens to Accelerate Their Rebuild

    23 minutes ago

    Jamie Carragher names German star who could be a 'problem' for Trent Alexander-Arnold

    23 minutes ago

    Islanders & Potential Player Additions

    23 minutes ago

    T20 World Cup: Proteas fixtures for the Super Eight

    23 minutes ago

    Albania are charged by UEFA over fan trouble during Euro 2024 clash with Italy - including provocative messages, lighting of fireworks, and throwing objects

    23 minutes ago

    Slovenia 1-1 Denmark: Christian Eriksen marks his return to the Euros with a goal 1,100 days after he collapsed on the pitch at Euro 2020... as Erik Janza's screamer salvages draw

    25 minutes ago

    DeChambeau takes three shot lead into U.S. Open final round

    25 minutes ago

    Eriksen's fairytale Euro comeback spoilt by Slovenia in 1-1 Euro draw

    27 minutes ago

    1 in critical condition after water rescue on Vancouver Island

    27 minutes ago

    Israeli army to pause daytime fighting near southern Gaza to help flow of aid

    27 minutes ago

    Walt Disney World Food Prices Have “Significantly” Out-Paced Inflation – Report

    28 minutes ago

    Ruth Langsford shares sweet tribute to her late father and sister in throwback Father's Day snap

    31 minutes ago

    Sending Canadian vessel to Cuba alongside Russia's was carefully planned: Minister

    31 minutes ago

    ‘10 German bombers’: The song the FA tried – and failed – to stamp out

    31 minutes ago

    Trudeau says he has 'concerns' about some findings of foreign interference report

    32 minutes ago

    Seven Serbia fans arrested ahead of Euro 2024 clash with England

    32 minutes ago

    Carlos Alcaraz confident he can convert clay form to grass ahead of Queen’s

    32 minutes ago

    Euro 2024: Eriksen scores opener 3 years post-cardiac arrest

    33 minutes ago

    Voters starting to ‘hold the government to account’

    33 minutes ago

    Toronto corner store at risk of closing over zoning dispute with city

    33 minutes ago

    Wayne Rooney’s ‘extreme’ comments about Trent Alexander-Arnold called into question

    33 minutes ago

    David Beckham attends King's awards

    33 minutes ago

    England's starting lineup for Euro 2024 opener against Serbia is confirmed as Trent Alexander-Arnold gets the nod in midfield

    33 minutes ago

    Holland fans are accused of doing 'blackface' in attempt to dress up as legend Ruud Gullit during Euro 2024 victory over Poland

    35 minutes ago

    Nick Jonas to star in The Last Five Years on Broadway

    38 minutes ago

    Watch: Angel Reese gets flagrant foul in collision with Caitlin Clark

    39 minutes ago

    Biden appears to freeze up, has to be led off stage by Obama at mega-bucks LA fundraiser

    39 minutes ago

    Video: Chrissy Teigen, Jessica Alba, and Gwen Stefani honor their husbands and dads on Father's Day

    39 minutes ago

    Video: David Beckham thanks wife Victoria for their 'incredible' family as former footballer leads the Father's Day tributes with Amanda Holden, Amy Dowden and Perrie Edwards

    39 minutes ago

    Jill Halfpenny says the tragic sudden death of her partner Matt Janes in 2017 finally helped her grieve her father - who also passed away prematurely four decades earlier

    39 minutes ago

    Minecraft Fan Shares Interesting Concept For a New Pillager Structure

    39 minutes ago

    COVID disappointment driving Portugal's Cancelo at Euros

    39 minutes ago

    Italy need to learn killer instinct says Buffon after narrow win

    39 minutes ago

    Singapore golfer Shannon Tan encouraged by joint-3rd finish ahead of Olympics

    39 minutes ago

    What large car should you buy in 2024?