A recent study by Florida Atlantic University and Florida International University found the 15 US cities where house prices are more expensive than they should be and the most overpriced real estate markets in the country.
The study found that people in the city of Boise, Idaho, are paying an incredible 73% premium.
The researchers found that homes in Boise should cost $299,202 on average. However, a typical buyer is currently shelling out more than $516,548. This is approximately $217,000 more than what it should cost.
15 US cities where house prices are more expensive than they should be
Experts used data from real estate portal Zillow and other sources to determine the difference between the expected price of an average home in a given city, based on historical trends, and the prices buyers are actually paying today.
The difference between those two prices is what the researchers determined as each housing market’s markup rate.
The top 15 cities with the most overvalued prices are:
- Boise City, Idaho: 73% markup
- Austin, Texas: 68% markup
- Ogden, Utah: 65% markup
- Las Vegas, Nevada: 61% markup
- Atlanta, Georgia: 58% markup
- Phoenix, Arizona: 58% markup
- Provo, Utah: 57% markup
- Fort Myers, Florida: 56% markup
- Spokane, Washington: 56% markup
- Salt Lake City, Utah: 56% markup
- Charlotte, North Carolina: 55% markup
- Lakeland, Florida: 53% markup
- Tampa, Florida: 52% markup
- Raleigh, North Carolina: 51% markup
- Detroit, Michigan: 51% markup
As for the cities where they are currently paying the least premium, there is Baltimore, Maryland, where they are paying the lowest premium at just 2.6% on average. Premiums are also low in Honolulu, Hawaii at 2.9% and New York at 3.6%.
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