In many major cities, real home prices have declined as high interest rates are dampening demand. Simultaneously, property markets are slowing due to tough financing conditions and rising construction costs. As a result, housing bubble risks have eased in cities like Hong Kong, London, and New York. However, strong demand in the luxury market and a booming stock market are fueling bubble risks in cities like Miami and Los Angeles. This graphic, via Visual Capitalist’s Dorothy Neufeld, shows the cities with the highest real estate bubble risk, based on the UBS Global Real Estate Bubble Index 2024. Methodology To analyze real estate bubble risk, UBS looked at the following factors across 25 major cities: More specifically, bubble risk refers to the likelihood of a significant price correction due to distortions in global property markets Miami Ranks Highest for Housing Bubble Risk With real housing prices increasing nearly 50% since the end of 2019, Miami has the highest bubble risk across cities analyzed. This has pushed the price-to-income ratio higher, as buyers compete for limited waterfront luxury properties. At the same time, the city’s relative affordability compared to other major U.S. metros, along with no state income tax and a favorable climate, has fueled demand. Ranking […]