Which RE Markets did the best in 2008?

Question

Which real estate markets did the best in 2008?? I heard NYC was not affected very much in the 2008 crash. I dont know if that is correct. I know Phoenix took a big hit.

Cameron Tope · Answer

Small towns in the midwest seemed to hold up pretty well during 2008. I buy in Athens, OH a small college town. The college didn't stop accepting kids so things were pretty much business as usual. While you don't see much appreciation in these areas, during crashes they remained relatively unchanged.

Frank Wong · Answer

The markets where the fundamentals made sense and people were actually buying homes to live in instead  of buying 2,3,5 rentals thinking it was free money bc of fake appreciation.

Steve Vaughan · Answer

What was also important was niche/strategy and asset class.  You could have been in the 'best market' but if you were in luxury/resort STRs or flipping,, you were looking for a chair.

My B and rural C class LTRs did fine.  A class LTRs were hit pretty hard.

Cameron Tope · Answer

Yes, Colleges are closing now but the question was about 2008.

We'll see how it plays out with student aid. If universities are accepting students then they will be paying out aid.

This is another great reason why you diversify and always keep some cash.

Bill F. · Answer

@Patrick J.

BP put out an article with a bunch of great data about about different market returns and I wrote a thread detailing some factors that have driven RE returns based on tier data.

Jeffrey Daniels · Answer

@Patrick J. Many people far wiser than I are detailing how today's market isn't anything like '08. Phoenix could see a large drop in demand while still having it outstrip supply considerably. If lost wages result in increased evictions, rents may decrease. Personally, I still don't see owners losing property value.

Jeffrey Daniels · Answer

@Cameron Tope it's sounding like many Colleges are closing for at least the remainder of the year. A portion of students rely on financial aid to pay the rent, and if they're not in school they may not be receiving those funds.

Scott Wolf · Answer

@Patrick J. NYC saw a major price drop during the  '08 crisis.  This article from the NY Times puts it at 24% in Manhattan.

Nick Rutkowski · Answer

Upstate New York wasn't effected as much price wise, the market price is as elastic as corn though. I think places like FL and TX who are seeing a influx of wealthier boomers will have the best ROI. Looking at NY, we suspended mortgages, evictions, and foreclosures taking the burden off the workers and put it on the landlords and banks. Maybe this could cause a fall in prices for investments in NY... time will tell.

Which RE Markets did the best in 2008?

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