Report Names Lakeland-Winter Haven Worst for Real Estate Investing

The Lakeland-Winter Haven Metropolitan Statistical Area topped the list in a report of cities where it was least wise to invest in a home.

The report was commissioned by Forbes magazine and compiled by Local Market Monitor, a Cary, North Carolina real estate research firm.

We asked LMM for the top ten markets where it was least wise to invest in a home. Lakeland topped the list in part because second-home and speculative investing was rampant there during the boom. The practice drove prices up artificially, giving them a long way to fall. — Francesca Levy, Forbes

LMM selected markets with a population over 40,000. The areas were ranked based on job forecasts, population growth and home-price changes.

The list of ten cities includes Florida markets Orlando-Kissimmee, Daytona Beach-Deltona, Ormond Beach, Port St. Lucie, and Fort Myers-Cape Coral. The list rounded out by two Nevada markets and cities in Micigan, Idaho and Arizona.

“I’m a bit surprised there are no California markets in this list,” says LMM president Ingo Wizner. “But the California markets by and large have hit bottom, and the Florida, Nevada and Arizona markets have not. Probably because the latter had so many ‘investor’ properties.”

According to Wizner, cities who made the list were “investor markets” where home buyers were speculating on home prices through the purchase of second homes. He stated the poorer markets have less organic demand for housing when speculation is removed.

Glittering ponds or no, you should not buy a home in the Lakeland-Winter Haven Metropolitan Statistical Area if you’re interested in selling it at a profit any time soon — Francesca Levy, Forbes

The Forbes Article

Local Market Monitor

America’s Best Housing Markets For Investors – Forbes

At the other end of the spectrum, Lakeland, Fla.; Reno, Nev.; and Orlando are the absolute worst real estate markets into which you could put your money, with LMM calling them “frankly dangerous.” Home prices in these metros have dropped to dramatic lows–in Lakeland, they fell 18% between the second quarters of 2009 and 2010. Worse yet, they are forecast to continue declining. America’s Best Housing Markets For Investors – Forbes, Sept. 10, 2010

Creative Commons License front photo credit: D.B. Blas

2 thoughts on “Report Names Lakeland-Winter Haven Worst for Real Estate Investing

  1. Ms. Levy failed to mention a timeline other than the generic timeline of “any time soon”. If she is talking about flipping a property, I would have to agree.

    I beg to differ otherwise. I think the Lakeland-Winter Haven area is a great place to invest in Real Estate and definitely a great place to live, prices are low and if you are wiling to hang on to a property – and that is the most determining factor and rent it out or do owner financing, it is definitely worth it. As a Realtor® I would never advise an investor to flip a property in today’s market and the experienced investor is well aware of the situation in the Lakeland-Winter Haven area.

  2. Realtors are entitled to their opinion too.

    But most of us have been watching our property values drop like a falling knife for quite some time. While this is a great place to live, for many, it’s becomming harder and harder because a century of land development mismangement by feckcless governments and greedy developers came home to roost during the recession. Thanks to our ponzi scheme development-based economy, experts agree that Florida will be among the last to recover. How’s that working for you? How many years of excess residential and commerical property do we have in the inventory?

    This set of statisitics (five cities in Florida at the top of the “worst investment list”) is a great reason to vote FOR Amendment 4 and stop this madness.

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