What Markets Did Poorly the Last 10 Years?

[Robert C.]

Maybe the answer is none! But one thing that has always bothered me since the last recession is that it seems like EVERYBODY has been a winner in REI. That could be the bias of posters on BP, too. Can anyone point to places that did poorly, or performed significantly under expectations?

People always say that real estate is local, so then shouldn't there be more variation in outcomes even during an expansion? 

There's the idea floating around that much of the reason REI and the stock market have done so well this round is because of the money that was pumped into the system during the GFC, and it's not because there was anything special about the fundamentals of any particular asset class. Well, what does that mean going forward if we're talking trillions more coming out of this next downturn? Where does all that money end up?

We've all got time on our hands, so now seems like a good time to reflect on how the last 10 years have gone, and maybe that can give us some hints as to what our crystal balls are telling us. 

[Karl B.]

It depends on what you mean by places that did poorly. I mean, if you're talking little to no appreciation, Erie PA (a city I invest in/grew up in) would be a great example. However, the cash flow is typically very, very good. 

The main reason for this lack of appreciation is in the past: local government has been pathetically bad. 

City Council is still a joke though the mayor (despite everyone's complaints) is the best mayor we've had since the 1980s (if not earlier - everybody from 1990 on was bad - I was born in the 1980s so I don't know who the last good mayor was). 

If local government can improve and make the city business friendly there could actually be appreciation.