This Is the Most Overpriced Housing Market in America

By Douglas A. McIntyre Published Jan 21, 3:00PM EST

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This Is the Most Overpriced Housing Market in America — © dszc / E+ via Getty Images

Demand for housing has risen sharply in 2021, and that has affected prices. According to the carefully followed S&P CoreLogic Case-Shiller Indices, home prices nationwide rose 19.1% in October, compared to the same month last year. In several markets, the figure was over 25%.

Because of the high demand for housing in some markets, sellers are able to command a premium price for their homes – and the most overpriced housing market in America is Boise City, Idaho. (And this city has the most expensive houses in America.)

No single factor has caused these increases in demand for housing. Certainly, low mortgage rates have contributed, although these have begun to rise. Tens of thousands of people have departed expensive coastal cities such as New York and San Francisco, where home prices exceed twice the national median, for cities inland where prices have been lower. The ability to work from home, brought on by the COVID-19 pandemic, has allowed many Americans to become mobile.

Ironically, the move inland has pushed home prices higher in cities people have found attractive for their new lives. With limited supply, bidding wars, in which more than one buyer puts an offer for the same home, have also contributed to price increases. Homes in some cities now stay on the market for just a few days. (Still, you can buy a home for under $100,000 in these American cities.)

The high demand for homes in recently desirable cities has caused them to become overvalued, compared to historical numbers. Florida Atlantic University’s College of Business has tracked the value of homes in the top 100 U.S. housing markets.

The researchers, Ken H. Johnson, Ph.D., and Eli Beracha, Ph.D., “have developed a methodology to score the top 100 most overpriced or underpriced metropolitan cities in the U.S.” They used data from Zillow, specifically the Zillow Home Value Index, and a series of complex formulas that take into account home prices over a period of years.

24/7 Wall St. reviewed the study to find the most overpriced housing market in America. The city that carries the largest premium for home prices is Boise City, Idaho, with a premium of 78.36%. This is well above the second-highest premium, which is 57.96% in Austin, Texas.

No cities on either coast made the top 10 cities on the list. Tampa, Florida, which is ranked 15th, carries the highest premium of coastal cities at 39.94%.

Click here to see this Is the most overpriced housing market in America

50. Fresno, CA
> Premium on home price: +23.92%
> Avg. home price: $360,587
> Expected home price: $290,985

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49. Birmingham, AL
> Premium on home price: +24.55%
> Avg. home price: $215,449
> Expected home price: $172,980

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48. Riverside, CA
> Premium on home price: +25.17%
> Avg. home price: $529,415
> Expected home price: $422,957

47. Sacramento, CA
> Premium on home price: +25.31%
> Avg. home price: $570,569
> Expected home price: $455,309

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46. Toledo, OH
> Premium on home price: +26.37%
> Avg. home price: $154,443
> Expected home price: $122,213

45. San Antonio, TX
> Premium on home price: +26.42%
> Avg. home price: $269,724
> Expected home price: $213,357

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44. Kansas City, MO
> Premium on home price: +26.56%
> Avg. home price: $261,238
> Expected home price: $206,412

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43. Akron, OH
> Premium on home price: +27.22%
> Avg. home price: $190,207
> Expected home price: $149,513

42. Greenville, SC
> Premium on home price: +27.69%
> Avg. home price: $261,408
> Expected home price: $204,726

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41. Buffalo, NY
> Premium on home price: +27.70%
> Avg. home price: $226,248
> Expected home price: $177,168

40. Albuquerque, NM
> Premium on home price: +27.72%
> Avg. home price: $279,710
> Expected home price: $218,996

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39. Jacksonville, FL
> Premium on home price: +30.31%
> Avg. home price: $314,569
> Expected home price: $241,399

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38. Chattanooga, TN
> Premium on home price: +30.47%
> Avg. home price: $232,860
> Expected home price: $178,478

37. Winston Salem, NC
> Premium on home price: +30.60%
> Avg. home price: $207,123
> Expected home price: $158,596

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36. Cincinnati, OH
> Premium on home price: +31.02%
> Avg. home price: $238,813
> Expected home price: $182,277

35. Denver, CO
> Premium on home price: +31.12%
> Avg. home price: $577,543
> Expected home price: $440,459

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34. Seattle, WA
> Premium on home price: +31.18%
> Avg. home price: $706,964
> Expected home price: $538,943

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33. Orlando, FL
> Premium on home price: +31.19%
> Avg. home price: $332,633
> Expected home price: $253,560

32. Knoxville, TN
> Premium on home price: +31.28%
> Avg. home price: $269,351
> Expected home price: $205,167

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31. North Port-Sarasota-Bradenton, FL
> Premium on home price: +31.67%
> Avg. home price: $397,995
> Expected home price: $302,276

30. Greensboro, NC
> Premium on home price: +32.80%
> Avg. home price: $203,217
> Expected home price: $153,022

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29. Cleveland, OH
> Premium on home price: +33.52%
> Avg. home price: $199,727
> Expected home price: $149,589

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28. Columbus, OH
> Premium on home price: +34.11%
> Avg. home price: $269,247
> Expected home price: $200,766

27. Indianapolis, IN
> Premium on home price: +34.86%
> Avg. home price: $239,443
> Expected home price: $177,549

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26. Daytona Beach, FL
> Premium on home price: +35.04%
> Avg. home price: $301,804
> Expected home price: $223,494

25. Youngstown, OH
> Premium on home price: +35.12%
> Avg. home price: $132,047
> Expected home price: $97,723

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24. Tucson, AZ
> Premium on home price: +36.04%
> Avg. home price: $309,330
> Expected home price: $227,376

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23. Dayton, OH
> Premium on home price: +36.55%
> Avg. home price: $175,148
> Expected home price: $128,270

22. Melbourne, FL
> Premium on home price: +36.66%
> Avg. home price: $307,812
> Expected home price: $225,247

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21. Nashville, TN
> Premium on home price: +37.08%
> Avg. home price: $384,321
> Expected home price: $280,358

20. Fort Myers, FL
> Premium on home price: +37.13%
> Avg. home price: $344,810
> Expected home price: $251,439

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19. Grand Rapids, MI
> Premium on home price: +38.14%
> Avg. home price: $276,826
> Expected home price: $200,389

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18. Dallas-Fort Worth, TX
> Premium on home price: +38.18%
> Avg. home price: $338,194
> Expected home price: $244,743

17. Raleigh, NC
> Premium on home price: +38.76%
> Avg. home price: $391,444
> Expected home price: $282,093

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16. Memphis, TN
> Premium on home price: +39.69%
> Avg. home price: $205,936
> Expected home price: $147,421

15. Tampa, FL
> Premium on home price: +39.94%
> Avg. home price: $323,040
> Expected home price: $230,843

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14. Lakeland, FL
> Premium on home price: +40.58%
> Avg. home price: $267,184
> Expected home price: $190,054

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13. Colorado Springs, CO
> Premium on home price: +41.80%
> Avg. home price: $452,127
> Expected home price: $318,846

12. Stockton, CA
> Premium on home price: +42.03%
> Avg. home price: $526,520
> Expected home price: $370,716

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11. Charlotte, NC
> Premium on home price: +44.58%
> Avg. home price: $329,961
> Expected home price: $228,218

10. Detroit, MI
> Premium on home price: +47.23%
> Avg. home price: $225,601
> Expected home price: $153,230

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9. Salt Lake City, UT
> Premium on home price: +47.32%
> Avg. home price: $544,529
> Expected home price: $369,626

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8. Atlanta, GA
> Premium on home price: +47.53%
> Avg. home price: $330,218
> Expected home price: $223,835

7. Spokane, WA
> Premium on home price: +48.94%
> Avg. home price: $402,085
> Expected home price: $269,963

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6. Las Vegas, NV
> Premium on home price: +49.39%
> Avg. home price: $391,346
> Expected home price: $261,958

5. Provo, UT
> Premium on home price: +49.81%
> Avg. home price: $530,171
> Expected home price: $353,892

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4. Phoenix, AZ
> Premium on home price: +50.14%
> Avg. home price: $422,463
> Expected home price: $281,372

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3. Ogden, UT
> Premium on home price: +55.94%
> Avg. home price: $482,461
> Expected home price: $309,392

2. Austin, TX
> Premium on home price: +57.96%
> Avg. home price: $534,433
> Expected home price: $338,345

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1. Boise City, ID
> Premium on home price: +78.36%
> Avg. home price: $500,137
> Expected home price: $280,406

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.