"2% rule" cities? Or should they be called, "Cities that Americans are Ditching?"

[Scott Trench]

Came across this article today and thought it might make for a good discussion:

These are the Top 20 Cities Americans are Ditching

I think it’s funny that some of the cities that many investors suggest as good places to look for 2% rule properties (like Milwaukee, WI and Memphis, TN) are ranked on this list - this data certainly doesn't bode well for long-term rent growth or appreciation prospects on cash-flow properties! I think that this gives me pause give pause as I was previously looking to invest out of state in the larger cities that merely had the best price to rent ratios.

That said - the article does point out that some of these cities ARE gaining in population, due to things like immigration. But even with that caveat, I look at this and I see that Americans just don't want to live in certain places and are moving out in pretty large numbers. I wouldn't want to put my own money in a place that ranks highly for that metric, unless someone could convince me that some plan is place to change that.

Economic growth and the long-term prospects of my target market are definitely a huge part of my decision making process as I’m looking to pick a market for my first out-of-area real estate investment.

Anybody have any thoughts on how to choose a great market to invest in?