I’m a Real Estate Expert: 3 ‘Cold’ Housing Markets That Could Be a Bargain – GOBankingRates

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When it comes to real estate, it might seem like every listing has multiple bids, cash offers, and open houses swarming with eager, hopeful buyers, but that isn’t the case. While there are many hot markets with competitive bidding wars, several areas across the country, known as cold housing markets, also see little interest.

“Cold markets are where listings linger for an average of over one year,” Kobi Lahav, seasoned real estate broker/real estate investments and Sr. Managing Director/Director of Sales at Living New York said. There are quite a few places where sellers are slashing prices, which is a welcome relief to buyers. 

Lahav explained, “Right now, we see a large number of cold markets concentrated in the Midwest and Florida. Those areas are primarily affected by skyrocketing insurance costs, but you can also see a correlation between areas with lower household incomes and rising interest rates.”

According to the real estate agent, three states have cold housing markets and bargains for homebuyers

New York 

New York City has long been a desirable destination to live in, so it doesn’t seem like the housing market would ever cool down, but Lahav said that’s what is happening. 

“NYC prices have dropped and listings linger on the market for 6-12 months. The reason is high interest rates, the high cost of common charges, taxes, and assessments due to regulations like local law 97, which requires buildings to be energy efficient.”

He continued, “However once these assessments are set and paid for and interest rates come back down, savvy buyers can negotiate a lowered price and enjoy the upside when the market recovers. NYC has a high percentage of higher-income earners who can take advantage of a lower interest rate environment almost immediately.” 


Texas is one of the fastest-growing states, with more than 9 million people moving to the Lone Star state from 2000 to 2022, according to the United States Census Bureau. While it has gained a significant number of new residents and does have hot markets like Austin and Houston, Lahav explained that there are opportunities for homebuyers to get a good price. 

“There are a lot of cold markets in Texas,” he stated. “I think that the lowering of interest rates will drive buyers back into the purchase process. In addition, Texas is going to see the creation of a new stock exchange that is said to rival the NYSE and Nasdaq.” 

Lahav added, “This move will drive more demand for companies to incorporate in that state. Those companies will not concentrate just in Dallas and will look for opportunities for their employees in cold market towns.” 


Florida is a popular place to live and retire, with its sunny climate and good tax breaks. According to Lahav, buyers can find budget-friendly housing.

“In Florida, an oversupply of housing combined with higher insurance costs could drive buyers to areas like Naples and restimulate the housing market there,” he explained. “Wealthy buyers who feel that Miami is overcrowded and too expensive might look for a different option in the state of Florida that enjoys the same weather, the same services at lower prices, and, of course, the lack of state income tax.”

How Trump Could Affect the Housing Market 

Lahav said that things could change for certain states if President Donald Trump takes back the Oval Office. 

“If investors believe that Trump will win the election, and he’s judged by his past actions, he will most likely continue to take federal tax benefits from states like NY and California and transfer them to his electoral base in Florida and Texas.” 

Lahav explained, “My guess is that towns that suffer from hurricanes and see rising insurance costs will see budgets and tax incentives redirected their way by a Trump administration.”

How the Conflict with China Impacts U.S. Real Estate 

Another thing to watch out for that can impact the housing market is the U.S. conflict with China, Lahav stated. 

“I see the US-China relationship continuing to be very tense, which will require more companies to relocate their manufacturing to a different country with easy shipping to the U.S.” He explained, “It seems recently that American companies have rediscovered Mexico, the ease of transportation and the lower cost of wages will see in my opinion a lot of companies shifting to Mexico for manufacturing. The ease of shipping makes it pretty clear.”

As a result, “Towns known for services and blue-collar jobs can benefit immensely from the shipping and storing of goods,” Lahav said. He added, “Towns like El Paso and Brownsville in Texas could see a resurgence of their housing markets in the next five years because of the political landscape and the shifting of manufacturing to Mexico.” 

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