These 10 Cities Have the Most Overpriced Homes in the U.S.

The mass exodus of Americans moving from big cities like Los Angeles and San Francisco amid COVID-19 resulted in a huge jump in home values in more affordable places, like Utah and Idaho. A recent study now shows buyers are paying peak prices in some areas and could be stuck waiting a while for their home’s value to improve before seeing a return on their investment.

According to researchers from FAU/FIU, here are the 10 most overpriced housing markets in the U.S., along with the premiums — or the percent above their long-term pricing trend — being paid in each market:

1. Boise, Idaho - 80.64%

2. Austin, Texas - 50.72%

3. Ogden, Utah - 49.70%

4. Provo, Utah - 46.16%

5. Detroit, Michigan - 45.57%

6. Spokane, Washington - 45.21%

7. Salt Lake City, Utah - 42.41%

8. Phoenix, Arizona - 42.31%

9. Las Vegas, Nevada - 41.88%

10. Stockton, California - 38.50%

This means homes in Boise, Idaho, are currently selling for 80.64% higher than they should, when considering past home prices in that city.

“In the Top 10 markets, potential buyers might want to consider renting and reinvesting money that they otherwise would have put into homeownership,” Ken H. Johnson, Ph.D., a real estate economist and associate dean in FAU’s College of Business, said in a press release. “Renting and reinvesting has been shown to often outperform ownership in terms of wealth creation.”

Not surprisingly, a tourist-dependent area like Urban Honolulu, Hawaii, is ranked 100th in the FAU/FIU survey, showing homes are selling for 4.93% lower than past home prices. The Aloha State’s housing and job market are still recovering from hard hits during the pandemic.

So, while homes in Hawaii still aren’t cheap, now might be the time to make that big jump to the islands to get the most bang for your buck.