WRE News: Miami Ranks as Third Most Overvalued Real-Estate Market Globally by UBS

Miami, FL – October 31, 2023 – UBS has identified Miami as one of the world’s most overvalued real-estate markets, ranking it third on their list of 25 cities in a recent research note. The city’s score of 1.38 on the Global Real-Estate Bubble Index places it in “overvalued” territory, edging closer to the “bubble” range of 1.5 and above, a level last seen during the mid-2000s housing bubble. The high real-estate valuations in Miami are primarily attributed to its elevated price-to-income ratio and city-to-country home price ratio. The city has experienced strong demand from out-of-state and foreign buyers, with the most sought-after destinations being Miami, Singapore, and Dubai. Prices have surged, with some areas seeing up to 40% price growth and 50% higher rents over the past two years. Miami’s home prices have also outperformed the national average, doubling over the last decade, while the national median home price stagnated.