Florida has 9 of the top 15 most overvalued housing markets in the U.S., study reveals (2024)

BOCA RATON, Fla. (CBS12) — Florida remains the state with the most overvalued housing markets in the nation, according to a new study from Florida Atlantic University (FAU) and Florida International University (FIU).

According to research, prices have lessened month-to-month in many markets around the country, but markets remain significantly overvalued.

“Prices are still moderating in the majority of the country, especially east of the Mississippi,” noted Ken H. Johnson, Ph.D., real estate economist at FAU’s College of Business. “There’s not much price movement. But, once you go west, you see some price declines.”

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Researchers said prices could take years to return to where they should be. In Florida, nine different markets made the top 15 most overvalued markets list.

Those markets are:

• Tampa (43.09 percent)
• North Port (42.59 percent)
• Cape Coral (42.18 percent)
• Lakeland (41.20 percent)
• Palm Bay (40.37 percent)
• Jacksonville (39.29 percent)
• Miami (38.73 percent)
  
• Orlando (38.66 percent)
• Deltona (38.54 percent)

Despite this, experts say those looking to stay in a home after purchasing should not be afraid of losing money on their investment.

“There’s some concern in buying if you are looking to resell in a short time. But, if you are planning on staying in the home for several years, purchasing should perform as well in terms of wealth creation as renting and re-investing,” said Eli Beracha, Ph.D. of FIU’s Hollo School of Real Estate. “For example, in Miami, there’s no reason to suspect a crash in prices as witnessed 15 years ago when the average property lost upwards of 60 percent in its value. Supply and demand are completely different this time around.”

For a full list of the top 100 most expensive housing markets, click here.