It isn't just some cities that are on the decline. It is hitting the 'burbs too.
I lived in New York City for almost two decades. My wife and I saw Hell's Kitchen improve, and we later lived in South Harlem and saw the start of its return. Then we moved to Michigan and I live in the house my great uncle bought in the early 1970s. My neighborhood was always known as "Rich Roseville," a nicer part of the blue-collar town.
In recent years I've seen the houses less well kept and the area outside of the neighborhood had gone downhill and I seriously worried about the home values falling. It is heartbreaking to see.
So, as it happens, today my wife and I are closing on a house in Grosse Pointe Woods, Michigan. Our property taxes will double, and I'll have a mortgage again, but it is my bet to ensure that my equity isn't lost as I get ever close to "old age." And for a couple of months, I'll have two houses too!