TAMPA, Fla. — Two Bay area cities rank high on a list of the most overvalued housing markets in Florida.
New research from a team of real estate economists from Florida Atlantic University and Florida International University shows that Lakeland and Tampa are the most overvalued markets in the state. That means homes are selling at far beyond the expected prices.
What You Need To Know
- Bay area cities top list of most overvalued housing markets
- Studies: Lakeland and Tampa are the most overvalued markets in the state
- 2 Central Florida cities also among Top 30; Boise, Idaho tops the list
- RELATED STORY: Rent control debate heats up in St. Petersburg
Out of a nationwide list, Lakeland and Tampa made it into the top 15. The average home in the Tampa area sold for 41% above the expected price at the end of last year.
Here's how the top Florida cities ranked:
- No. 12 Lakeland
- No. 14 Tampa Bay
- No. 20 Fort Myers
- No. 22 Melbourne
- No. 25 Daytona Beach
- No. 29 Sarasota-Bradenton
The two researchers, Ken Johnson and Eli Beracha, compared the average sale price and pricing trends for 100 cities across the country.
“Mortgage rates have been near historic lows for the last two years and have helped keep housing demand strong through the pandemic,” Beracha said.
The nation's most overvalued market is Boise, Idaho where home buyers pay roughly 77% more than they should, according to the study.