Epic Real Estate Investing - 7 Cities Americans Are Fleeing in 2025 - Mass Exodus Explained | 1453

Episode Date: March 29, 2025

In this episode, we delve into the top seven American cities experiencing significant population declines in 2025 and analyze the surprising trends in their real estate markets. Despite the exodus, cities like Baltimore, Detroit, Washington DC, San Francisco, Chicago, Los Angeles, and New York are seeing increases in home prices and rental incomes. We explore why this is happening, the opportunities it presents for savvy investors, and which specific neighborhoods are thriving amidst the broader urban challenges. Key insights include the importance of neighborhood-specific trends and the growing rental market, even as overall populations decline. The episode concludes with practical advice for investors and a free training offer for those looking to capitalize on these market dynamics. https://lunchbreakdeals.com/ Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. By the end of this, you'll know which seven American cities, these people are fleeing in 2025. I've got the data to prove it. These population shifts are happening right now, and they could affect where you live or invest your money. And what's happening in city number two will really make you think twice about everything you thought you knew.

Plus, I'll reveal a surprising money-making secret about these cities that most investors are completely missing, how some are earning 36% higher returns than the national average. Let's waste no time. Number seven, Baltimore, Maryland. People are leaving Baltimore fast. But why? Safety worries are the main reason. Crime rates are much higher than most cities. Many people don't feel safe in their own neighborhoods. I talked to a family who left last month

after living there for 15 years. They said, we had to move because our kids couldn't even play outside. I'm hearing stories like this all the time now. Roads and bridges are falling apart. Schools are in bad shape. Many families feel they have no choice but to leave. Now, for the unexpected twist that investors need to see, even though people are leaving, Baltimore's home prices tell a totally different story. The average home costs $230,000. That's up 4.8% from last year. Do you get that? People are leaving, but home prices are up. Weird, right? Rents are staying strong too at about $16.85 per month. Smart investors are finding deals in neighborhoods like Bel Air Edison. Homes there cost around $160,000, a cheap way to get into a market

that's growing in value. The city has problems, but some areas are doing really well. The smart money is watching these spots. If you want a better place to look, try Richmond, Virginia. It's just two hours south. It has pretty old buildings, but more jobs and better schools. And check out the fan district in Richmond if you're young and looking for a cool place to live. Number six, Detroit, Michigan. Now, Detroit, it keeps losing people, even though some parts of downtown are getting better. You can see it from space, actually. Satellite photos show whole blocks where houses are empty and nature is taking over. The car factories that built this city never came back fully. City services like trash pickup and police are in really bad shape. The numbers, though, tell a different

story. Detroit's home prices went up by 11.2% last year. Another weird one, right? People are moving out, but home prices went up by 11.2%. The average home costs just $88,000. That makes Detroit one of the cheapest places to buy property in any big U.S. city. Rent prices, those are different in each area, but investors are making money in neighborhoods like DFWT6. At least, Atlanta, C-10, and Berkeley M3. These areas, they're stable and growing, while other parts of Detroit struggle. If you want a better place to look, try Columbus, Ohio. It feels like the Midwest, but has lots of different jobs and a downtown that's getting

really nice. Check out German village in Columbus if you want to invest somewhere with really good potential. Number five, Washington, D.C. The nation's capital is losing people, and it's surprising many experts. Worry about government jobs has created panic, and the high cost of living keeps pushing people to move to the suburbs. For real estate investors, DC offers some interesting chances. There are more homes for sale than usual, which means buyers might find good deals right now. The H Street

Corridor, Hill East, and Carver Langston neighborhoods are really bright spots. They're growing even while people leave other parts of the city. New real estate rules are changing the market. This creates chances for investors who understand what's happening. And I think, is D.C. actually getting better for people who stay? Many residents think so. They say there's less competition for restaurants and events and the neighborhoods, they feel more connected. But if you're looking for a better place to look, try Charlotte, North Carolina. It has city amenities and lots of new jobs. The Noda District in Charlotte feels urban, like D.C., but costs much less.

Before I show you the top four cities people are leaving, let's talk about what this means for real estate investors. The first three cities showing something really strange. In Baltimore, people are leaving, but home prices went up. 4.8% last year. Detroit, even crazier. People are moving out there, but home prices went up 11%. It seems odd, doesn't it?

You'd think home prices would drop when people move away. This goes against what most rational people would expect. Here's what's happening. When people leave a city, it affects different neighborhoods in different ways. Some neighborhoods lose value because fewer people want to live there. But other neighborhoods actually become more valuable. They have a limited supply of homes and areas where people still want to live. This isn't new.

Throughout history, when people move around, it changes real estate. state values. Some areas get worse, but others get better and more expensive. Smart investors look at where people are moving to and from. They figure out which neighborhoods will keep their value, even when the city has its problems. As we look at our top four cities, you're going to see these same patterns, but bigger. There's more risk, but also bigger opportunities if you know where to look. Now, let's get to the cities that are seeing the most dramatic population shifts. Number four, San Francisco. San Francisco's tech workers are leaving in big numbers, and you've probably seen news, stories about empty offices and moving trucks. But the housing numbers tell a different story.

The average home costs $1.2, almost $1.3 million, and prices went up 3.9% even though people are leaving. It defies logic. Massive population losses, yet prices continue climbing upward. The smart investors in Frisco are watching certain neighborhoods. Burnall Heights, Excelsior, No Valley, Outer Richmond, and Outer Sunset. These areas, they stay popular even while the rest of the city has its problems. It's exactly what we talked about earlier. Some spots get better while others get worse. I talked to one investor who said, everyone's looking at who's leaving. I'm looking at who's staying and where they want to live. Number three, Chicago. It's losing people at crisis levels. This city used to attract people from all over the Midwest. Now people are leaving in

record numbers, but we're seeing the same weird pattern that we saw in Baltimore and Detroit. Even though living in Chicago costs 14% more than the national average, home sales are going up slightly. Rent prices are going up a little bit too. This strange mix, people leaving, but prices staying strong. It creates chances for investors who know our follow the population strategy. This means finding which areas the people that are staying, which areas are they moving to? Those are the areas that are going to keep their value, and they are keeping their values, even when the city has these problems, even when a bunch of people are leaving. Now, then wondering about this, too, is Chicago actually getting better for the people who stay? Many long-time residents

say yes. They mention less traffic, easier access to restaurants and parks, and stronger neighborhood communities. Before we get to our top two cities, here's something most investors do not know. Cities losing people are making 36% more rental income than the national average. That's right. While everyone looks at growing cities, smart investors are quietly making way more cash flow in these shrinking markets. The numbers tell the story. Cheaper properties in these exodus cities typically make 8 to 10% profit compared to just 4 to 6% in booming markets. One investor I talked to bought a five-unit building for only $80,000 in a city losing population. That building brings in $43,000 in rent each year.

That's a 54% return before expenses. You just can't find deals like this in growing markets where everyone's fighting over the same properties. What makes this even better? A record, 36% of Americans now proficient. for renting over buying, the highest percentage ever recorded. With fewer people able to afford homes, the round market is booming, even in cities where the population is dropping. And here's another detail most people miss. While American families are moving out of these cities,

international immigrants are moving in. These new residents often rent for several years before buying, which creates strong rental demand in specific neighborhoods. Number two, Los Angeles. L.A. shows the biggest surprise of all the cities that we've looked at. While while people are leaving, like never before, especially families with kids, home prices are expected to go up by 13%. One of the biggest increases among all our Exodus cities. I bet nobody would guess. People leaving in huge numbers, yet prices expected to jump 13%. This big difference, lots of people leaving, but prices going way up, is the most extreme version of what we saw in Baltimore and Detroit. For investors, this means you really need to understand each neighborhood because they're all different.

Heat maps showing where people are moving to and from show exactly where L.A. residents are going, and smart investors are following these patterns. Number one, New York City. This shows the most dramatic example of our strange population versus value pattern. And here's something really interesting. The number of kids under five years old has dropped 18% since 2020. That's the biggest change we've seen in any city. This means families with young children are leaving faster than ever before.

And you'd think home values would crash with so many people leaving. Instead, the average home cost $860,000, which is up 3.9% from last year. This increase, it's not as big as LA's expected 13% or Detroit's 11%, but it shows how strong the housing market can be even when lots of people are moving out. It's the clearest example of something we've seen in all these cities. Just because people are leaving doesn't mean home prices will drop. Some neighborhoods are actually doing better during this exodus. One real estate agent told me, we're seeing bidding wars in parts of Brooklyn that nobody

wanted just a few years ago. Now, let's look at what we learned from these seven cities. While everyone's talking about people leaving, the numbers tell a different story. Baltimore is up 4.8% even with its problems. Detroit, with its problems, had a big jump of 11.2% in home prices. LA, expected to go up 13% in New York, still going up 3.9% with homes costing $867,000. And here's what most people don't see. Even in cities losing people, home values aren't just staying the same. they're going up. But there's an even bigger chance here to make money. While everyone's worried about people moving, two big things are happening at once. One, almost no new homes are being built. Two, more people have to rent instead of buy. And here's why you should care. When people leave expensive

cities like San Francisco, where homes cost almost $1.3 million, they don't vanish. They move to cheaper cities and often become renters. This creates a perfect chance to make money, especially in the cities where people are moving to. While most people worry about the headlines, smart investors are quietly buying property where the population is growing. Now, not everyone thinks this approach makes sense. Russell, Brazil, a well-known real estate agent and investor, disagrees with this strategy. He says, when population goes down, demand goes down too. Lower demand means lower prices. Would I buy a stock I know will lose value just because it pays good dividends?

No way. Russell makes a good point about long-term growth concerns. But our data shows that if you pick the right neighborhoods, in these cities, you can make better cash flow than in growing markets while still keeping your property value. His idea of following the people is right on point, but what's changed is the people all aren't necessarily moving to big cities. They're moving also to little neighborhoods within those cities, even though everybody around them may be leaving. And so there exists the demand Russell's talking about. What's really happening like we've never really seen before, it's a shift in

who lives in these cities, not just how many people. Young families with kids are leaving fastest. That's why we see that 18% drop in children under five in New York, but young professionals and international immigrants are continuing to move in. So this explains why some property types, like family homes and suburbs, might struggle, while others, like downtown apartments, stay valuable. The smartest investors are paying attention to these demographic shifts, not just the total population number. In the end, it comes down to your investing goals. Are you looking at for fast growth or are you looking for steady income? But I bet you're thinking, you know, Matt, this sounds great, but I'm busy. I barely have time to watch YouTube, let alone learn real estate

investing. That's why I made something to help. A free training that you can watch whenever you want, and it's not one of those sales webinar things. It's a real training. It shows you how to find these deals using just your lunch break. No hard math, no quitting your job, just simple steps to get your first property. In it, you're going to learn how to find good deals in changing markets like the ones that we talked about, a simple way to check if a property is worth buying in 15 minutes, and how to build a team so other people do most of the work for you. I put the link below. It's 100% free, no extra stuff, just clear steps to get started. If you only remember one thing from this video, remember this. When people move from one place

to another, it creates opportunity. But only if you know where to look. And what we're learning is, where we look has expanded greatly. We could look at entire states that are growing in population, we could look at the entire city, or we could look at small little villages within those cities. If you follow the people, the money will follow you. I'll see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you.

I'm Matt Terrio, living the dream. Yeah, yeah, we got the cash flow. You didn't know, home for it, we got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.