Study: Austin ranked No. 2 for most 'overpriced' homes

Real Estate
Kitchen 1940174 1280
A new study ranked Austin as second in the U.S. for having one of the most overpriced housing markets. | Pixabay

A new study ranked Austin as second in the U.S. for having one of the most overpriced housing markets. 

Researchers Ken H. Johnson, Ph.D., of Florida Atlantic, and Eli Beracha, Ph.D., of Florida International, developed a methodology to find the top 100 most overpriced or underpriced metropolitan cities in the U.S., according to a Florida Atlantic University (FAU) press release

They used open-source data from Zillow and other real estate providers for their research. The new information allows viewers to see the average premium or discount that they are paying in their area, helping them to make more informed decisions about their housing investments.

Austin ranked No. 2 with homes going for 50.72% more than they should, behind Boise, Idaho at 80.64%, according to FAU. 

No other metros in Texas appear with Austin among the 10 most overpriced home markets. Dallas-Fort Worth was No. 19; San Antonio was No. 48 and Houston was No. 57, according to FAU. 

The study covers single-family homes, townhomes, condos and co-ops, according to CultureMap Austin

In July, the average price of homes in the Austin area hit a high of $480,000, which is 37% more than the same time last year, according to CultureMap Austin.