Overpriced and not too overpriced US real estate markets from Forbes

Here’s an article on overpriced real estate markets. The authors calculated a P/E ratio for each market involving home prices and rental income. Low affordability, low income growth and a high cost of living are also issues here.

Starting with the most overpriced:

1. San Diego
2. Miami
3. Sacramento
4. San Francisco
5. Washington
6. Honolulu
7. New York
8. Los Angeles
9. Boston
10. San Jose

We also have the least overpriced real estate markets:

1. Charlotte, N.C.
2. Austin
3. Raleigh, N.C.
4. Detroit
5. St. Louis
6. Pittsburgh
7. Orlando
8. Philadelphia
9. Indianapolis
10. El Paso

Keep in mind that these listing don’t necessarily talk about which cities are good real estate investments. The article warns agains investing in Detroit, and I’ve blogged about the same thing here. Philadelphia has economic concerns that are hurting areas outside of Center City. Pittsburgh does look good to many investors, however.

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