50 Cities With the Most Overpriced Homes

The U.S. is currently experiencing its longest economic expansion on record. Over the past decade, gross domestic product rose, unemployment rates fell and thoughts of the Great Recession faded into the abyss of time. While all of that was happening, much of the U.S. housing market recovered as well. U.S. home prices were up more than 50% in 2018 since bottoming out in the 2008 recession, according to global property analytics firm CoreLogic, and they’re expected to increase by 5.6% by September 2020.

The steady rise in home values is an encouraging sign for the economy, but too much growth can lead to instability — and instability naturally leads to collapse. A hot housing market may indicate a budding town with a healthy employment rate, attractive jobs and growing wages. However, it could also mean that sellers are becoming greedy and listing homes far above their natural value.

To determine which housing markets in the U.S. are the most overpriced, GOBankingRates used data from Zillow to analyze the difference between the median list price and median home value for single-family residences in the nation’s largest housing markets. Home values in these cities are growing especially fast — Chattanooga, Tennessee, for example, saw a 14% increase in home prices over the past year alone, according to a separate GOBankingRates study. Prospective homebuyers should be wary: One of these cities could be the location of the next housing bubble.

Last updated: Dec. 19, 2019

50. Little Rock, Arkansas

  • Median list price in 2019: $218,415.10

  • Median home value in 2019: $140,360

  • Difference between list price and home value: $78,055.10

49. Overland Park, Kansas

  • Median list price in 2019: $396,944.45

  • Median home value in 2019: $318,550

  • Difference between list price and home value: $78,394.45

48. Greenville, South Carolina

  • Median list price in 2019: $269,716.50

  • Median home value in 2019: $190,640

  • Difference between list price and home value: $79,076.50

47. Glen Allen, Virginia

  • Median list price in 2019: $404,193

  • Median home value in 2019: $324,520

  • Difference between list price and home value: $79,673

46. Goldsboro, North Carolina

  • Median list price in 2019: $167,234.95

  • Median home value in 2019: $87,330

  • Difference between list price and home value: $79,904.95

45. Mission, Texas

  • Median list price in 2019: $210,977.25

  • Median home value in 2019: $129,980

  • Difference between list price and home value: $80,997.25

Pictured: McAllen, Texas, a neighboring city

44. Concord, North Carolina

  • Median list price in 2019: $288,780.85

  • Median home value in 2019: $207,560

  • Difference between list price and home value: $81,220.85

43. McAllen, Texas

  • Median list price in 2019: $219,580

  • Median home value in 2019: $137,540

  • Difference between list price and home value: $82,040

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42. Pensacola, Florida

  • Median list price in 2019: $227,870

  • Median home value in 2019: $145,350

  • Difference between list price and home value: $82,520

41. Woodstock, Georgia

  • Median list price in 2019: $340,976

  • Median home value in 2019: $257,420

  • Difference between list price and home value: $83,556

40. Santa Barbara, California

  • Median list price in 2019: $1,326,575

  • Median home value in 2019: $1,242,050

  • Difference between list price and home value: $84,525

39. Escondido, California

  • Median list price in 2019: $624,533.65

  • Median home value in 2019: $538,070

  • Difference between list price and home value: $86,463.65

38. Holland, Michigan

  • Median list price in 2019: $288,340

  • Median home value in 2019: $200,960

  • Difference between list price and home value: $87,380

37. Frisco, Texas

  • Median list price in 2019: $486,455.60

  • Median home value in 2019: $398,510

  • Difference between list price and home value: $87,945.60

36. Allen, Texas

  • Median list price in 2019: $409,868.20

  • Median home value in 2019: $319,670

  • Difference between list price and home value: $90,198.20

35. Beaumont, Texas

  • Median list price in 2019: $200,773.70

  • Median home value in 2019: $108,700

  • Difference between list price and home value: $92,073.70

34. Plymouth, Minnesota

  • Median list price in 2019: $471,739.50

  • Median home value in 2019: $377,160

  • Difference between list price and home value: $94,579.50

33. Sumter, South Carolina

  • Median list price in 2019: $178,576

  • Median home value in 2019: $82,400

  • Difference between list price and home value: $96,176

32. Alpharetta, Georgia

  • Median list price in 2019: $501,744.20

  • Median home value in 2019: $405,520

  • Difference between list price and home value: $96,224.20

31. Los Angeles

  • Median list price in 2019: $831,343.80

  • Median home value in 2019: $735,060

  • Difference between list price and home value: $96,283.80

30. Savannah, Georgia

  • Median list price in 2019: $232,712

  • Median home value in 2019: $136,280

  • Difference between list price and home value: $96,432

29. Napa, California

  • Median list price in 2019: $780,670

  • Median home value in 2019: $683,240

  • Difference between list price and home value: $97,430

28. Olathe, Kansas

  • Median list price in 2019: $360,485

  • Median home value in 2019: $263,050

  • Difference between list price and home value: $97,435

27. Franklin, Tennessee

  • Median list price in 2019: $575,085.50

  • Median home value in 2019: $477,640

  • Difference between list price and home value: $97,445.50

26. Houston

  • Median list price in 2019: $293,654.40

  • Median home value in 2019: $195,790

  • Difference between list price and home value: $97,864.40

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25. Hoover, Alabama

  • Median list price in 2019: $391,873.30

  • Median home value in 2019: $293,740

  • Difference between list price and home value: $98,133.30

24. Tampa, Florida

  • Median list price in 2019: $324,054.90

  • Median home value in 2019: $225,020

  • Difference between list price and home value: $99,034.90

23. Jersey City, New Jersey

  • Median list price in 2019: $578,090

  • Median home value in 2019: $478,670

  • Difference between list price and home value: $99,420

22. Santa Fe, New Mexico

  • Median list price in 2019: $504,228.30

  • Median home value in 2019: $400,330

  • Difference between list price and home value: $103,898.30

21. Chattanooga, Tennessee

  • Median list price in 2019: $252,585

  • Median home value in 2019: $146,400

  • Difference between list price and home value: $106,185

20. Sugar Land, Texas

  • Median list price in 2019: $410,760.05

  • Median home value in 2019: $304,180

  • Difference between list price and home value: $106,580.05

19. Huntsville, Alabama

  • Median list price in 2019: $262,082

  • Median home value in 2019: $153,360

  • Difference between list price and home value: $108,722

18. Charlottesville, Virginia

  • Median list price in 2019: $444,794.85

  • Median home value in 2019: $334,840

  • Difference between list price and home value: $109,954.85

17. Monroe, Louisiana

  • Median list price in 2019: $208,920

  • Median home value in 2019: $96,350

  • Difference between list price and home value: $112,570

16. Newport Beach, California

  • Median list price in 2019: $2,546,800

  • Median home value in 2019: $2,433,680

  • Difference between list price and home value: $113,120

15. The Woodlands, Texas

  • Median list price in 2019: $456,946.40

  • Median home value in 2019: $343,520

  • Difference between list price and home value: $113,426.40

14. Miami

  • Median list price in 2019: $476,100

  • Median home value in 2019: $359,150

  • Difference between list price and home value: $116,950

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13. Tyler, Texas

  • Median list price in 2019: $263,515.65

  • Median home value in 2019: $145,100

  • Difference between list price and home value: $118,415.65

12. Gainesville, Georgia

  • Median list price in 2019: $304,830

  • Median home value in 2019: $186,350

  • Difference between list price and home value: $118,480

11. Chicago

  • Median list price in 2019: $336,970

  • Median home value in 2019: $212,260

  • Difference between list price and home value: $124,710

10. Vienna, Virginia

  • Median list price in 2019: $936,431.75

  • Median home value in 2019: $806,110

  • Difference between list price and home value: $130,321.75

9. Rogers, Arkansas

  • Median list price in 2019: $321,854.75

  • Median home value in 2019: $184,960

  • Difference between list price and home value: $136,894.75

8. Fort Lauderdale, Florida

  • Median list price in 2019: $496,465

  • Median home value in 2019: $355,730

  • Difference between list price and home value: $140,735

7. Irving, Texas

  • Median list price in 2019: $370,463.35

  • Median home value in 2019: $226,170

  • Difference between list price and home value: $144,293.35

6. Boston

  • Median list price in 2019: $743,090

  • Median home value in 2019: $596,680

  • Difference between list price and home value: $146,410

5. New Orleans

  • Median list price in 2019: $327,650

  • Median home value in 2019: $168,820

  • Difference between list price and home value: $158,830

4. Dallas

  • Median list price in 2019: $387,659.90

  • Median home value in 2019: $224,620

  • Difference between list price and home value: $163,039.90

3. New York

  • Median list price in 2019: $788,240

  • Median home value in 2019: $616,890

  • Difference between list price and home value: $171,350

2. Arcadia, California

  • Median list price in 2019: $1,468,940

  • Median home value in 2019: $1,228,250

  • Difference between list price and home value: $240,690

1. Bethesda, Maryland

  • Median list price in 2019: $1,219,050

  • Median home value in 2019: $971,090

  • Difference between list price and home value: $247,960

More From GOBankingRates

Methodology: GOBankingRates analyzed the 722 biggest housing markets in the United States according to Zillow’s housing data to find the 50 cities with the most overpriced homes. GOBankingRates found (1) the 2019 median list price for all homes in each city and (2) the 2019 average home value for single-family residences in each city, both sourced from Zillow’s 2019 housing data, which spans from January 2019 to October 2019. Subtracting factor No. 2 from factor No. 1 gave (3) the difference between the median list price and average home value for each city. GOBankingRates then ranked the cities in terms of factor No. 3, with the greatest positive difference corresponding to the city with the most overpriced homes. All data used to conduct this study was compiled and verified on Nov. 27, 2019.

This article originally appeared on GOBankingRates.com: 50 Cities With the Most Overpriced Homes

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