Despite a general cooling in the housing market, certain regions across the U.S. continue to experience high demand, resulting in buyers paying considerably more than the actual worth of homes.
Florida Atlantic University identified the most overpriced housing markets in the country by comparing average expected home values, based on historical trends, to the average list prices across the 100 largest metro areas. The cities with the most significant percentage differences between these two values were determined to be the most overpriced.
Here’s a ranking of the top 10 most overpriced housing markets in the U.S., listed from least to most overpriced:
10. Nashville, Tennessee
– Average listing price: $420,932
– Expected home value: $296,827
– Difference between home value and list price: 41.81%
9. Tampa, Florida
– Average listing price: $361,065
– Expected home value: $252,643
– Difference between home value and list price: 42.9%
8. Deltona, Florida
– Average listing price: $334,978
– Expected home value: $233,050
– Difference between home value and list price: 43.74%
7. Detroit, Michigan
– Average listing price: $226,101
– Expected home value: $157,046
– Difference between home value and list price: 43.97%
6. Palm Bay, Florida
– Average listing price: $345,520
– Expected home value: $238,308
– Difference between home value and list price: 44.99%
5. Lakeland, Florida
– Average listing price: $303,766
– Expected home value: $209,260
– Difference between home value and list price: 45.16%
4. Memphis, Tennessee
– Average listing price: $225,958
– Expected home value: $154,575
– Difference between home value and list price: 46.18%
3. Charlotte, North Carolina
– Average listing price: $355,613
– Expected home value: $240,670
– Difference between home value and list price: 47.76%
2. Cape Coral, Florida
– Average listing price: $375,812
– Expected home value: $251,100
– Difference between home value and list price: 49.67%
1. Atlanta, Georgia
– Average listing price: $357,677
– Expected home value: $236,627
– Difference between home value and list price: 51.16%
All data is derived from Florida Atlantic University’s Top 100 U.S. Housing Markets and is accurate as of January 31, 2023.
