Miami tops global real estate bubble risk, but US cities show diverging trends
“Miami is where ultra-high-net-worth individuals want to live,” MIAMI chairman of the board Eddie Blanco previously said.
“Miami real estate offers more bang for your millions, a business-friendly government, no state income tax, FinTech hub, 365-day sunny weather and more. Meanwhile, the data shows that affordable 30-year condo units are maintaining their price appreciation. The condo market is the entry market for first-time homebuyers.”
Los Angeles, meanwhile, landed in the “elevated risk” category with a score of 1.11, ranking fourth globally.
“Los Angeles is among the least affordable cities in the US, contributing to a shrinking population,” UBS said. The city’s high price-to-rent ratio has kept homeownership out of reach for many, and “prices are likely to trend downward if mortgage rates do not drop,” the report added.
San Francisco and New York, by contrast, fell into the “low risk” category, with scores of 0.28 and 0.26, respectively. San Francisco’s affordability issues persist, despite incomes outpacing home prices in recent years.
