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Atlanta, GA 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 Atlanta, Georgia, as one of the most overpriced housing markets in the country. Currently, the average home in the area is selling for about $330,218, according to estimates from real estate data company Zillow. This is well above the average predicted price buyers should be paying of $223,835 – an estimate based on calculations using historical sales data.

The 47.5% premium home buyers are paying on the average house sold in Atlanta ranks as the eighth 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.

RankCityPremium paid on avg. homesale (%)Average home price ($)Expected home price ($)
1Boise City, ID78.4500,137280,406
2Austin, TX58.0534,433338,345
3Ogden, UT55.9482,461309,392
4Phoenix, AZ50.1422,463281,372
5Provo, UT49.8530,171353,892
6Las Vegas, NV49.4391,346261,958
7Spokane, WA48.9402,085269,963
8Atlanta, GA47.5330,218223,835
9Salt Lake City, UT47.3544,529369,626
10Detroit, MI47.2225,601153,230
11Charlotte, NC44.6329,961228,218
12Stockton, CA42.0526,520370,716
13Colorado Springs, CO41.8452,127318,846
14Lakeland, FL40.6267,184190,054
15Tampa, FL39.9323,040230,843
16Memphis, TN39.7205,936147,421
17Raleigh, NC38.8391,444282,093
18Dallas-Fort Worth, TX38.2338,194244,743
19Grand Rapids, MI38.1276,826200,389
20Fort Myers, FL37.1344,810251,439
21Nashville, TN37.1384,321280,358
22Melbourne, FL36.7307,812225,247
23Dayton, OH36.5175,148128,270
24Tucson, AZ36.0309,330227,376
25Youngstown, OH35.1132,04797,723
26Daytona Beach, FL35.0301,804223,494
27Indianapolis, IN34.9239,443177,549
28Columbus, OH34.1269,247200,766
29Cleveland, OH33.5199,727149,589
30Greensboro, NC32.8203,217153,022
31North Port-Sarasota-Bradenton, FL31.7397,995302,276
32Knoxville, TN31.3269,351205,167
33Orlando, FL31.2332,633253,560
34Seattle, WA31.2706,964538,943
35Denver, CO31.1577,543440,459
36Cincinnati, OH31.0238,813182,277
37Winston Salem, NC30.6207,123158,596
38Chattanooga, TN30.5232,860178,478
39Jacksonville, FL30.3314,569241,399
40Albuquerque, NM27.7279,710218,996
41Buffalo, NY27.7226,248177,168
42Greenville, SC27.7261,408204,726
43Akron, OH27.2190,207149,513
44Kansas City, MO26.6261,238206,412
45San Antonio, TX26.4269,724213,357
46Toledo, OH26.4154,443122,213
47Sacramento, CA25.3570,569455,309
48Riverside, CA25.2529,415422,957
49Birmingham, AL24.6215,449172,980
50Fresno, CA23.9360,587290,985

Samuel Stebbins, 24/7 Wall St. via The Center Square

The Georgia Virtue
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