As the real estate market evolves and trends change, there are several types of homes that may see their market values decrease in 2024.
The market value of homes are influenced by a number of factors, including economic conditions, shifts in buyer preferences, and changes in environmental policy. Here are the homes that are expected to see a decline in their market value this year, according to Go Banking Rates.
Homes in Regions Prone to Climate Disasters
One of the several home types that may lose their market value this year includes houses located in areas prone to disasters related to climate. These climate-related disasters include hurricanes, flooding, and wildfires.
Part of the reason why homes in climate-vulnerable areas may see a drop in value is the increasing frequency of disasters and rising insurance costs. In some places such as California, insurance companies are withdrawing coverage altogether due to the frequency and severity of climate disasters, making homes in these states less attractive to prospective buyers.
Outdated Properties
Homes that have not been updated or renovated in the past 10 years could be considered outdated, which may make it difficult to attract prospective buyers. Should they attract buyers, the homes would unlikely sell at premium prices.
To counter this, homeowners should consider updating their homes to add modern amenities, including high-speed internet, security systems, energy-efficient appliances, and smart home technology.
Urban Condominium Units
The COVID-19 pandemic has spurred many homeowners to look for properties in more spacious suburban or rural areas rather than in densely packed urban locations. According to the outlet, the trend may continue in 2024 and likely affect the value of luxury condominium units in urban cities, especially because they face decreasing demand. While remote work plays a role in the falling demand for luxury urban condos, the high maintenance fees associated with these properties also deter potential buyers.
Houses Near Polluting Industries
Houses located near factories, refineries, or heavily-trafficked highways may see a decline in market value as they are often subject to poor air quality and noise pollution, making them far less attractive to prospective buyers. As the real estate market evolves, more homeowners are including environmental health and air quality as some of the factors influencing their buying preferences.
