Home Prices, Rents Still Significantly Overpriced, Study Finds

Home prices and rents are significantly overpriced in many U.S. metropolitan areas and towns, a new study by the Real Estate Initiative (REI) has found. The REI is a collaboration between Florida Atlantic University, Florida International University, Florida Gulf Coast University, and the University of Alabama.

Homes in Atlanta led the pack of 100 cities in the sample, selling at a premium of 49.55% above what the REI’s mathematical model predicted. Thus, as of February 28, 2023, a home in Atlanta that the model predicted should have sold for $238,541 would have sold for $356, 748 according to actual data from Zillow’s Housing Value Index. Zillow defines the Index as “A measure of the typical home value and market changes across a given region and housing type. It reflects the typical value for homes in the 35th to 65th percentile range.”