10 US cities where housing prices fall

Property prices in most cities in the United States are constantly growing, reaching new heights.

Фото: Depositphotos

However, this situation has not developed in all regions, and in the United States there are several megacities where housing prices are falling, the newspaper writes Realtor.

In each case, there is a special reason for the decline in prices, including the construction boom, which caused supply to exceed demand; massive layoffs or closure of companies amid economic downturns associated with falling oil prices; and natural disasters.

To find out where prices are falling, experts compared the average housing costs for two years in the largest US cities in 350. The comparison included periods from May 2016 of the year to April 2017 of the year and from May of 2017 of the year to April of 2018.

Infographics: Realtor

Regions of the USA, where housing prices are falling:

1. Santa Maria - Santa Barbara, California

• Average house price: $ 951 600
• Price reduction for the year: -17,7%

This area was hit hard by forest fires and landslides in the 2017-2018 years. Because of them, more 20 people died, the losses were estimated at 400 million dollars.

2. Pottsville, PA

• Average house price: $ 72 300
• Price reduction for the year: -8,1%

This region suffers from high unemployment (5,7%), which is significantly higher than the average for the US (4,1%), so many leave the city due to the inability to earn a living there.

3. Napa California

• Average house price: $ 823 900
• Price reduction for the year: -6,7%

In 2017, forest fires in the region claimed the lives of 44 people, more than 8 000 houses and other buildings were destroyed.

4. Austin TX

• Average house price: $ 373 000
• Price reduction for the year: -4,3%

This city for many years attracted more and more new residents, and the builders of housing in response to this stream built new houses, but it seems a little overdone. And now, in order to sell what they have built, they have to lower prices.

5. Beckley, WV

• Average house price: $ 134 000
• Price reduction for the year: -4,2%

The main industry in the city is coal mining, which is in decline in the United States. Since 2012, the number of jobs in this area has decreased by 42%, which has led to a decline in the economy in the city, rising unemployment and lower housing prices.

6. College Station, Texas

• Average house price: $ 301 700
• Price reduction for the year: -3,6%

In this city, supply in the real estate market exceeded demand, which led to lower prices.

7. Corpus Christi, TX

• Average house price: $ 237 600
• Price reduction for the year: -3,1%

Hurricane Harvey in 2017 destroyed or damaged about 80% of homes in this city. The risk of a repetition of such a storm led to lower housing prices.

8. Anchorage, Alaska

• Average house price: $ 299 000
• Price reduction for the year: -3,0%

The economy of this city is heavily dependent on the oil market, and since it has been declining since 2015, the city is losing jobs. However, now oil prices are rising again, so it is likely that real estate prices in Anchorage, too, will soon cease to decline.

9. Houma louisiana

• Average house price: $ 176 900
• Price reduction for the year: -2,7%

This city also depends on the oil industry and has suffered from lower oil prices.

10. Bismarck, North Dakota

• Average house price: $ 263 200
• Price reduction for the year: -1,8%

In the middle of 2000, the discovery of oil in the region caused a big boom, which led to an increase in property prices in Bismarck. But when oil prices fell, its production in the region also declined, which affected the number of jobs and real estate prices.

Read also on ForumDaily:

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