25 Metro Areas With the Most Overpriced Homes

The steady rise in U.S. home values is an encouraging sign for the economy — banged up as it’s been by the pandemic. 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.

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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.. 

Prospective homebuyers should be wary: One of these cities could be the location of the next housing bubble.

Last updated: Sept. 3, 2021

• 2021 home value: $1,063,089
• 2021 median listing price: $561,128
• Difference between home value and list price: $501,961

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• 2021 home value: $1,158,318
• 2021 median listing price: $799,718
• Difference between home value and list price: $358,600

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• 2021 home value: $732,480
• 2021 median listing price: $576,879
• Difference between home value and list price: $155,601

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• 2021 home value: $540,712
• 2021 median listing price: $387,070
• Difference between home value and list price: $153,642

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• 2021 home value: $898,067
• 2021 median listing price: $757,519
• Difference between home value and list price: $140,547

• 2021 home value: $307,801
• 2021 median listing price: $169,744
• Difference between home value and list price: $138,056

• 2021 home value: $375,260
• 2021 median listing price: $237,838
• Difference between home value and list price: $137,422

• 2021 home value: $443,545
• 2021 median listing price: $308,402
• Difference between home value and list price: $135,143

• 2021 home value: $666,847
• 2021 median listing price: $531,744
• Difference between home value and list price: $135,103

• 2021 home value: $302,514
• 2021 median listing price: $176,456
• Difference between home value and list price: $126,059

• 2021 home value: $280,643
• 2021 median listing price: $156,713
• Difference between home value and list price: $123,930

• 2021 home value: $399,160
• 2021 median listing price: $278,058
• Difference between home value and list price: $121,102

• 2021 home value: $341,410
• 2021 median listing price: $221,792
• Difference between home value and list price: $119,618

• 2021 home value: $335,549
• 2021 median listing price: $225,994
• Difference between home value and list price: $109,555

• 2021 home value: $389,064
• 2021 median listing price: $280,031
• Difference between home value and list price: $109,033

• 2021 home value: $612,028
• 2021 median listing price: $503,228
• Difference between home value and list price: $108,800

• 2021 home value: $351,064
• 2021 median listing price: $244,153
• Difference between home value and list price: $106,912

• 2021 home value: $239,419
• 2021 median listing price: $134,152
• Difference between home value and list price: $105,267

• 2021 home value: $289,154
• 2021 median listing price: $184,326
• Difference between home value and list price: $104,828

• 2021 home value: $381,647
• 2021 median listing price: $279,304
• Difference between home value and list price: $102,343

• 2021 home value: $351,009
• 2021 median listing price: $251,613
• Difference between home value and list price: $99,396

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• 2021 home value: $734,297
• 2021 median listing price: $634,584
• Difference between home value and list price: $98,713

• 2021 home value: $367,204
• 2021 median listing price: $269,624
• Difference between home value and list price: $97,580

• 2021 home value: $281,332
• 2021 median listing price: $185,137
• Difference between home value and list price: $96,195

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• 2021 home value: $347,092
• 2021 median listing price: $252,271
• Difference between home value and list price: $94,820

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Chris Jennings contributed to the reporting for this article.

Methodology: GOBankingRates analyzed the biggest Metro Statistical Area (MSA) housing markets in the United States according to Zillow’s Housing Data to find the 25 Metros With the Most Overpriced Homes. GOBankingRates found the (1) 2021 Average Home Value for each city and subtracted that from each city’s (2) 2021 Average Median List Price, both sourced from Zillow’s May 2021 Housing Data. This gave each city a value that represented the (3) difference between Median List Price and Home Value. GOBankingRates then ranked the cities in terms of factor 3 with the greatest positive difference being worst. All data was compiled and is up to date as of July 7, 2021.