Top 100 Housing Markets
Researchers Ken H. Johnson, Ph.D., and Eli Beracha, Ph.D., use open-source Zillow data to rank the 100 most overpriced or underpriced U.S. metros. Their method helps readers gauge local premiums or discounts and make informed real estate decisions.
About the Top 100 U.S. Housing Markets Report
A key objective of this real estate initiative is to provide insights that support more informed decision-making in the housing market. To achieve this, a ranking of the top 100 housing markets nationwide has been developed and will be released monthly as the Beracha and Johnson Housing Market Ranking.
Each month, the ranking evaluates these markets based on the extent of overpricing or underpricing, using publicly available housing price indices (HPIs). A positive score indicates a premium, meaning the average property in a metro area is selling above its historically implied price. Conversely, a negative score reflects a discount, suggesting that properties are selling below their historical implied value. The ranking also quantifies the degree of premium or discount as a percentage difference between current market prices and where they should be based on statistical modeling.
The Beracha and Johnson Housing Market Ranking builds upon Case-Shiller and other widely used housing price indices. While HPIs estimate the average property price in a given market at a specific time, they do not determine the extent to which properties are selling above or below their implied value. This ranking fills that gap by providing a direct measure of market premiums or discounts, offering deeper insights beyond what traditional HPIs reveal.
By understanding whether housing in a given metro area is generally selling at a premium or a discount, buyers, sellers, real estate professionals, and policymakers can make more informed decisions within their respective markets.