What’s behind the sky-high home prices in many US cities?
Mark Zandi, the chief economist at Moody’s Analytics, explains why homes in so many cities across the U.S. are overvalued and how long this could last.
Nearly every community in the U.S. is feeling the effects of an overvalued housing market, particularly in some smaller cities in states like Idaho and Tennessee where many sought out a new home during the pandemic.
Data provided to FOX Television Stations by Moody’s Analytics shows homes in 97% of U.S. metro areas are overpriced, with the most overvalued markets seeing homes priced at 50% to 70% more than they’re worth. This overvaluation is compared to the historical norms of local household incomes, rents, and construction costs.
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