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UBS: Chicago’s the Only Undervalued Global Resi Market
Among 24 global cities, only Chicago’s residential real estate—including apartments as well as single-family homes—is considered undervalued. So says UBS in its recently issued Global Real Estate Bubble Index, which accordingly ranked Chicago as the most affordable of global real estate markets.
“Over the last four quarters, real prices have risen by 2% and are now at least 15% higher than at the market trough in 2013,” according to UBS’ capsule summary of the Chicago market. “Nonetheless, prices are still more than 25% lower than in 2006.”
Chicago’s high indebtedness, sluggish employment growth and declining population “will likely continue to hinder significant price increases,” according to UBS. “The housing market has potential substantial upside given the good affordability, but only if economic prospects improve.”
Among the other 23 cities, seven were seen to be at a risk of a real estate bubble, led by Munich and Toronto.
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- ◦Economy
