Special Report

Boise City, ID is One of the Most Overpriced Housing Markets in America

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%.

Surging demand, in addition to limited housing inventory, has created a sellers market unlike anything seen in recent memory. Homes are now selling faster than ever before – and also for more money than ever before.

The reasons behind this trend are varied. Certainly, low mortgage rates have contributed to increased demand for housing, although these have begun to rise. Further, during the COVID-19 pandemic, 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.

Because of the high demand for housing in some markets, sellers are able to command a premium price for their homes, and in many parts of the country, homes have become overvalued compared to historical numbers.

A new report from researchers at Florida Atlantic University’s College of Business identifies Boise City, Idaho, as one of the most overpriced housing markets in the country. Currently, the average home in the area is selling for about $500,137, according to estimates from real estate data company Zillow. This is well above the average predicted price buyers should be paying of $280,406 – an estimate based on calculations using historical sales data.

The 78.4% premium home buyers are paying on the average house sold in Boise City ranks as the highest of the 100 metro areas covered in the report.

The ranking of the most overpriced cities is based on a methodology developed by researchers Ken H. Johnson, Ph.D., and Eli Beracha, Ph.D.

 

Rank City Premium paid on avg. homesale (%) Average home price ($) Expected home price ($)
1 Boise City, ID 78.4 500,137 280,406
2 Austin, TX 58.0 534,433 338,345
3 Ogden, UT 55.9 482,461 309,392
4 Phoenix, AZ 50.1 422,463 281,372
5 Provo, UT 49.8 530,171 353,892
6 Las Vegas, NV 49.4 391,346 261,958
7 Spokane, WA 48.9 402,085 269,963
8 Atlanta, GA 47.5 330,218 223,835
9 Salt Lake City, UT 47.3 544,529 369,626
10 Detroit, MI 47.2 225,601 153,230
11 Charlotte, NC 44.6 329,961 228,218
12 Stockton, CA 42.0 526,520 370,716
13 Colorado Springs, CO 41.8 452,127 318,846
14 Lakeland, FL 40.6 267,184 190,054
15 Tampa, FL 39.9 323,040 230,843
16 Memphis, TN 39.7 205,936 147,421
17 Raleigh, NC 38.8 391,444 282,093
18 Dallas-Fort Worth, TX 38.2 338,194 244,743
19 Grand Rapids, MI 38.1 276,826 200,389
20 Fort Myers, FL 37.1 344,810 251,439
21 Nashville, TN 37.1 384,321 280,358
22 Melbourne, FL 36.7 307,812 225,247
23 Dayton, OH 36.5 175,148 128,270
24 Tucson, AZ 36.0 309,330 227,376
25 Youngstown, OH 35.1 132,047 97,723
26 Daytona Beach, FL 35.0 301,804 223,494
27 Indianapolis, IN 34.9 239,443 177,549
28 Columbus, OH 34.1 269,247 200,766
29 Cleveland, OH 33.5 199,727 149,589
30 Greensboro, NC 32.8 203,217 153,022
31 North Port-Sarasota-Bradenton, FL 31.7 397,995 302,276
32 Knoxville, TN 31.3 269,351 205,167
33 Orlando, FL 31.2 332,633 253,560
34 Seattle, WA 31.2 706,964 538,943
35 Denver, CO 31.1 577,543 440,459
36 Cincinnati, OH 31.0 238,813 182,277
37 Winston Salem, NC 30.6 207,123 158,596
38 Chattanooga, TN 30.5 232,860 178,478
39 Jacksonville, FL 30.3 314,569 241,399
40 Albuquerque, NM 27.7 279,710 218,996
41 Buffalo, NY 27.7 226,248 177,168
42 Greenville, SC 27.7 261,408 204,726
43 Akron, OH 27.2 190,207 149,513
44 Kansas City, MO 26.6 261,238 206,412
45 San Antonio, TX 26.4 269,724 213,357
46 Toledo, OH 26.4 154,443 122,213
47 Sacramento, CA 25.3 570,569 455,309
48 Riverside, CA 25.2 529,415 422,957
49 Birmingham, AL 24.6 215,449 172,980
50 Fresno, CA 23.9 360,587 290,985

 

Sponsored: Find a Qualified Financial Advisor:

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.