Savvy real estate investors want to buy property in places where home prices are steadily increasing, but in some markets, prices are rising at an unsustainable rate and are at risk of “bursting.” Fortunately, as the global housing market stabilizes, bubble risk has been declining, according to the latest UBS Global Real Estate Bubble Index .
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On a global level, the bubble risk has decreased thanks to post-pandemic price corrections and a housing shortage, which has driven rent prices up. However, there are still some cities around the world that are considered to be at risk for a housing bubble, including three U.S. cities .
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Miami
Miami has the highest bubble risk score of any city in the world and is considered to be at “high” bubble risk.
While housing price growth on a global scale has largely been muted over the last year, prices are still surging in Miami. According to the UBS data, home prices in Miami have risen by almost 50% since the end of 2019, with a 7% rise in the last year.