5 Types of Homes Likely to Lose Value by 2025

Amidst high interest rates and housing prices, prospective buyers may find opportunities in certain home types predicted to depreciate in value. Real estate experts anticipate a decline in the following properties:

1. Condos and Urban Apartments:

* Oversupply in housing markets due to excessive construction
* Declining demand as more individuals embrace remote work, leading to shifts towards suburban and rural areas

2. Older Suburban Homes:

* New construction in suburbs and exurbs overshadows older properties
* Homes 10-30 years old in these areas struggle to maintain value

3. Certain Luxury Properties:

* Oversupply in some markets due to high construction rates
* Interest rate hikes and economic uncertainty reduce purchasing power of wealthy buyers

4. Properties in High Unemployment Areas:

* Financial instability and job insecurity impact local demand and value
* Declining housing prices due to reduced affordability

5. Vacation Homes or Second Homes:

* Cautious buyers prioritize primary residence over additional properties
* High insurance and maintenance costs associated with vacation homes