These CA Housing Markets Are Among America's 5 Most Overvalued

CALIFORNIA — Four of America’s five most overvalued housing markets are in California, according to a recent analysis from U.S. News & World Report.

The outlet used data from November 2024 primarily sourced from its housing market index to determine which markets require the highest percentage of local per capita income for principal and interest on a home. The national median is 36.3 percent, according to U.S. News & World Report.

The publication ranked the five most overvalued homeownership markets as:

1. Kahului-Wailuku-Lahaina, Hawaii: 115.4 percent
2. San Francisco-Oakland-Hayward: 68.3 percent
3. Riverside-San Bernardino-Ontario: 67.8 percent
4. San Diego-Carlsbad: 66.3 percent
5. Los Angeles-Long Beach-Anaheim: 66 percent

In its analysis, U.S. News & World Report cited housing supply’s failure to keep up with job growth in California as the cause of the high prices.

“The loss of an estimated 12,000 structures in the recent Los Angeles area fires will only exacerbate the high costs for both buyers and renters,” according to the outlet.