(AURN News) — Miami faces the highest risk of a real estate bubble among major global cities, according to a new UBS analysis, with Los Angeles also flagged as home prices in both markets outpace local wages.
The UBS Global Real Estate Bubble Index places Tokyo and Zurich just behind Miami in the high-risk category. The report finds housing markets overall have cooled during the past four quarters, as still-elevated financing costs strain affordability and dampen demand.
“With public debt nearing 100% of global GDP by decade’s end (according to the IMF forecast), policymakers face three long-run paths to keep the debt dynamics under control: austerity, inflation, or financial repression,” wrote report authors Claudio Saputelli and Matthias Holzhey in an editorial.
In contrast, the analysis lists San Francisco and New York as having low real estate bubble risk scores. The report also notes that inflation is affecting the market.
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