15 California Cities You Should Never Buy Property In

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The story is that California is the land of opportunity, sunshine and dreams. But for those of us who like our investments to have a bit of sanity, not all Golden State cities are worthy of a spot on your property wish list. Some places just check all the red flag boxes – from soaring costs, dicey infrastructure, unpredictable market trends and so on.

For first time homebuyers, or experienced investors, it is equally important to be able to identify where not to dump your hard earned cash as it is to find the next hot area. Here are 15 cities in California where buying property is less than a stellar move. This is your friendly neighborhood heads up before you sign on the dotted line.

Stockton

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Stockton was once known as an agricultural hub, but for years has struggled economically and socially. In 2012, the city declared bankruptcy and, while it has made strides since, crime rates are still of concern. Many neighborhoods aren’t quite recovering their appeal and property values don’t quite match the risks. Throw in the volatile housing market, and Stockton looks like a roll of the dice you’d rather not take.

San Bernardino

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San Bernardino usually gets its 15 minutes of fame for all the wrong reasons. It has some of the highest crime rates in the state and still hasn’t recovered from filing for bankruptcy in 2012. Home prices might beckon in comparison to coastal cities, but the long term growth potential is doubtful. It could feel like buying property here is like trying to build a sandcastle too close to the tide.

Compton

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Compton, though, has made enormous strides to reinvent itself, but its reputation for crime and safety concerns hasn’t completely disappeared. The prices of real estate might seem attractive, but there is baggage. In addition to schools, the performance metrics of these schools also struggle and it affects property value growth over time. Investing here feels like more of a gamble than a plan for many.

Fresno

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Affordable? Sure. A sound investment? Maybe not. Fresno is less attractive for long term growth with high unemployment rates and few significant economic drivers. The city depends on agriculture, thus vulnerability to market changes and climate changes. There’s something of a ‘bet on the underdog’ feeling to buying property here, but it’s an underdog that’s still working out its game plan.

Bakersfield

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Oil and agriculture are huge parts of Bakersfield’s economy and, as such, it is sensitive to market changes. According to IQAir, air quality in this area is also consistently rated as some of the worst in the nation. On the surface, home prices look great, but the environmental and economic uncertainty make it a dicey place to sink your roots—or your dollars.

Victorville

Sure, Victorville might seem like a budget friendly option for first time buyers, but don’t let low prices fool you. It struggles with high unemployment rates, few amenities and no strong economic growth. You might wonder where all the action is, and why you’d invest here, as you drive through its sprawling desert landscape.

Oakland

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Oakland has a thriving culture and is close to San Francisco, but the prices of homes are too high given the risks. The city still has to deal with its pockets of high crime and homelessness, which influences property values. It can sometimes feel like paying champagne price for a cocktail that’s not quite shaken right.

Modesto

Modesto has affordable housing, but its economy is stagnant and has higher than average crime. Agriculture dominates the city’s economy and the city is easily susceptible to droughts and market dips. For many investors, the long tail risks of the business simply do not justify the low entry cost.

Merced

While Merced is billed as the “Gateway to Yosemite,” that doesn’t necessarily make it a property hotspot. The city is confronted with unemployment, low wages and limited economic diversity. While UC Merced is promising, it is not enough to offset the fundamental problems.

Barstow

There’s nothing charming about Barstow feeling like the middle of nowhere. This city is situated on the I-15 and suffers from few jobs to go around and an unpleasant housing market. Here it might sound like a steal, but it’s more of a head scratcher when looking at the longer term.

El Centro

According to the Bureau of Labour, El Centro is frequently at the top of the charts for unemployment rates. Agriculture is central to the city’s economy, but there are growing challenges to water supply and climate. Buying property here is more of an experiment than a solid investment.

Hemet

For years, Hemet has had poor schools and high crime rates. Housing prices may seem attainable, but the long term potential to grow is doubtful. Residents have difficulties obtaining employment opportunities and the quality of life is very low which does not attract property investors.

Lancaster

In Lancaster, Antelope Valley, it’s affordable, but not much else. The city suffers from crime, no economic drivers and few cultural or recreational amenities. Here, for many, feels like buying the minimum and hoping for a miracle.

Riverside

Riverside may be a surprise for some on this list, but its rising home prices don’t always match the city’s rising economy. The market feels overheated, but there’s potential for appreciation.

Tulare

Agriculture is such an important part of Tulare’s economy, the city is especially vulnerable to market changes and droughts. City faces challenges when it comes to attracting and retaining new residents being limited with amenities and slow economic growth. Buying here makes you wonder if perhaps you have sown seeds into soil that’s simply too dry.

Disclaimer: This list is solely the author’s opinion based on research and publicly available information.