Are you as shocked as we are?
No, really, we think everyone knows things are pricey out here, and Forbe's is utilizing some interesting methodology to glean "overpricey' from the "pricey," and turn it into everyone's favorite, a Top 10 list.
Well, we weren't the worst; that honor went to San Diego.
From the get-go, this was less interesting than it could have been, because they only examined the top 40 largest metro areas -- so this is basically a top 25% list. Then again, we guess you have to compare apples with apples.
The article posits that the markets in "bubble territory" are those with a high price-to-earnings ratio (in other words, a measure of value representing return on investment per dollar spent), low affordability, low income growth, and a high cost of living. The article states that:
San Francisco, ranked fourth, fits that bill. Despite home prices growing at a 2% clip over last year, according to the Natioanbl Assoc. of Realtors (NAR), the city by the bay ranks third to last in expected income growth, reports Moody's. Not good news in a market where only 7.5% of housing is affordable for the median-income earner. Combine that with a housing P/E ratio over 50, and it isn't difficult to imagine some softening on the horizon."
The list, in order, went: San Diego, Miami, Sacramento, San Francisco, D.C., Honolulu, New York, Los Angeles, Boston, and San Jose.
Hey -- there's a lot of "-ists" on that list.