Boise The Most ‘Overpriced’ Housing Market In The U.S.
Finding it hard to find a house? Seem like a bit much for the house you're looking at? A recent study shows there is a good reason for that!
Feel like spending nearly half a million dollars for a three bedroom, two bathroom home with 1300 square feet in Boise is a bit ridiculous? That's because it is! In fact, according to a study from Florida Atlantic University, Boise is the city with the single highest overvalued housing market in the country. The study notes that, "The nation’s most overvalued market is Boise, Idaho, where homes are selling for 80.64 percent more than they should, based on a history of past pricing. Work-from-home consumers priced out of other markets during the pandemic appear to be leaving those expensive cities and driving up values in Boise, according to Johnson and Eli Beracha, Ph.D., of FIU’s Hollo School of Real Estate." So, the pandemic plays a big role in the rate people are moving to the area for sure, but how to combat this?
Well, the article also has an answer for that: “In the Top 10 markets, potential buyers might want to consider renting and reinvesting money that they otherwise would have put into homeownership. Renting and reinvesting has been shown to often outperform ownership in terms of wealth creation.” So, maybe the right move is to hold off on buying for a bit and wait for things to level out again because at this rate, purchasing a home, depending on how the future goes, could actually lead to losing quite a bit of money and equity. Something to think about!