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 Grand Rapids, Michigan, as one of the most overpriced housing markets in the country. Currently, the average home in the area is selling for about $276,826, according to estimates from real estate data company Zillow. This is well above the average predicted price buyers should be paying of $200,389 – an estimate based on calculations using historical sales data.

The 38.1% premium home buyers are paying on the average house sold in Grand Rapids ranks as the 19th 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

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