These are the top 10 cities where Americans are overpaying for houses
- The housing market remains tight, and some US cities are seeing homes that are listed more than 40% above their historical value.
- New data from Florida Atlantic University broke down the most overpriced housing markets in the country.
Homebuyers in the most overpriced US cities are currently paying a premium of more than 40% compared to historical prices, according to a recent study from Florida Atlantic University.
Atlanta leads the way as the most overpriced city, though five of the top 10 cities are in Florida.
"Florida is so overvalued almost certainly because of the increased demand to live here combined with a shortage of available housing units," said Ken H. Johnson, an economist at FAU. "There are just not enough roofs to go around, given our population and Florida's stature as a prime destination."
High mortgage rates, high prices, and homeowners reluctant to sell because they're unwilling to part with lower rates they've locked in, have all helped keep the US housing market tight in 2023. Nearly a quarter of homeowners have a mortgage rate below 3%, close to the highest proportion on record, Redfin data shows.
FAU researchers compiled current home price data and compared it to historical trends to find which places Americans were overpaying the most. Below are the 10 most overpriced US cities, with the percentage signifying the premium between current prices and long-term pricing trend.
1. Atlanta, Georgia: +48.57%
2. Detroit, Michigan: +45.80%
3. Tampa, Florida: +43.98%
4. North Port, Florida: +43.49%
5. Cape Coral, Florida: +43.35%
6. Memphis, Tennessee: +43.35%
7. Lakeland, Florida: +42.36%
8. Charlotte, North Carolina: +42.19%
9. Palm Bay, Florida: +41.00%
10. Winston, North Carolina: +40.96%