What will the looting/riot in Kenosha do to the RE market?

Question

What do you think will happen to the real estate market in Kenosha post riot/looting? What has happened to the RE markets in the past after looting was done in other small cities?

Jay Hinrichs · Answer

WEll we are in ground zero here in Portlandia..  it has no effect on residential real estate or the market that i can see..

what it DOES effect though is commerical downtown real estate were Rioters and looters are operating every night..

Sad that protestors get a free pass for social distancing and other Covid things we are all trying to adhere to.. plus no real reprecussions for the Looting and other illegal acts these so called peaceful protestors are doing..

I mean in CA were I am from Northern CA were wild fires are reality.. Looters get SHOT literally.. and for sure get arrested.. Nothing more Heinous than looters coming behind fire lines to steal from burnt out owners..

what your seeing now is business people protecting everything they have lived and worked for..  put the shoe on the other foot.. its insane what these folks are doing.. what is damages real estate wise though is reputation.

And look you are now not wanting to buy 3 properties because of it.. Even though its probably no where near were your buying in reality  distance wise.

Tara Jenkins · Answer

@Edgar Perez I am also an investor in Kenosha.  I have 3 additional properties I am in the process of purchasing there too so it is an important question to ask.  I don’t mean to be insensitive, I am just trying to get an idea of what has happened to other small cities where this has happened to in the past.

Matthew Nye · Answer

I invest in Kenosha and Racine area. I agree with @Brock Mogensen. Short term dip, possibly no effect on the far west (interstate) side, long term Kenosha / Pleasant Prairie will continue seeing people sneak across the border from IL, which will buoy prices

Most of the damage has been concentrated in downtown and uptown...I would wager most BP members would be looking elsewhere in Kenosha anyway to invest

After night 3 of riots (when a double homicide occurred), night 4 was peaceful and the law enforcement is now so significant I anticipate (fingers crossed) things will subside

As always, best time to buy something good is when it has hair on it in the headlines.

Prayers appreciated as well for my little town, for both peace and justice.

Edgar Perez · Answer

@Tara Jenkins Im sorry but being from Kenosha, living in Kenisha and an investor in the area, I feel that is an incentive question at this time. I understand your financial concerns as I have the same questions but now is not the time

Corina Eufinger · Answer

It will hurt the downtown area significantly for commercial spaces and businesses.  Given the development taking place north and west of downtown residential housing will still be in demand.  Unfortunately it sets back any progress made towards revitalizing the downtown in the past 10 years.  Businesses will be more attracted to Pleasant Prairie, Somers, Bristol etc.  Because my heart breaks for Kenosha, that's all I'm going to say at this moment.  I wouldn't be stopping investing in Kenosha if it were me.  In fact if I were an investor in that area, I'd likely be a little more active over the next month or so.

However, if the protests continue to be deadly like they were last night that changes the outlook dramatically for residential.  Shootings leave more of a scar on residential real estate market than the rioting and looting of businesses in a current events matter.  Believe my heart aches for people like B&L Office Furniture and others. I am not minimizing what is happening to them but looking at it from real estate,  the deeper scars will come if shootings and violence continue.

Brock Mogensen · Answer

I think long term Kenosha will bounce back but short term gains will be wiped out.  There has been massive job growth and new companies coming to the Kenosha/Pleasant Prairie area..which lots of it will be retracted. I was born and raised in Kenosha and own property there..sad to see this happen to a town that has come so far in the past few years.

Tara Jenkins · Answer

@Matthew Paul are you asking why I am asking because I am from Chicago and there has been looting in Chicago or because I am not from Kenosha?  I feel like there is a big difference between a big city like Chicago and a small city like Kenosha.   I am new to investing and want to know the more long term effects of looting in a smallish city are.

Matthew Paul · Answer

@Tara Jenkins You are asking this , and you are from Chicago ?  Short term nobody will be looking to buy , long term is a toss up

Edgar Perez · Answer

@Tara Jenkins thank you and I better understand now, these details and feelings were not expressed in the initial post which is what I was responding to.

Tara Jenkins · Answer

@Edgar Perez clearly I am putting those 3 properties on hold. My heart breaks for Kenosha. I am not trying to ask this question in regards to financial gain, but more to gain knowledge about my market. I am asking from the biggerpockets community who may have gone through this situation in the past.

What will the looting/riot in Kenosha do to the RE market?

Most Popular Reply