Are you looking to buy a home in 2021? Or an investment property? Then make sure to avoid buying in these 5 cities!

The five markets covered in this video are ones that home buyers and real estate investors will want to avoid in 2021. Simply put, their investment fundamentals do not match up with the prices that need to be paid to buy real estate right now.

These markets are:

Austin: wait...what? I thought Austin was the hottest real estate market in the country? Well, it is. And that's exactly why savvy investors will avoid Austin in 2021. Since every developer and home builder is flocking to Austin, the metro is now permitting too many new housing units for how many people are moving in.

New Orleans: can you believe that NOLA still hasn't recovered from Hurricane Katrina? That's right - 15 years later, the city still has fewer jobs than than it did pre-Katrina. And with stiff job losses occurring in the current recession this is a market for real estate investors to avoid.

New York: The city and its surrounding suburbs lost nearly 900k jobs in 2020. That's a 10% decline, more than 2x higher than the city has experienced in any previous downturn over the last 30 years. This does not look like a situation where New York will simply bounce back!

Los Angeles: LA real estate is really, really expensive. Whereas the average home value in the US is roughly 4x the average income, Los Angeles home values are more like 15x the local average income. That ridiculous value to income differential simply isn't sustainable going forward.

Boise: This market is a legitimate grower, with top-level population and income gains. However, home prices have spiraled out of control, increasing by 20% over the last year up to $370k on average. That's higher than Austin and Phoenix, two markets with stronger fundamentals. Boise is in a bubble!

Data sources:
Home Price Data: Zillow ZHVI
Permitting Data: US Census Bureau
Jobs Data: Bureau of Labor Statistics

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