The rankings, from Swiss bank UBS, shows that the San Francisco housing market is over-valued along with Los Angeles.
Both cities remain in 10th and 11th places respectively in the Global Real Estate Bubble Index while New York and Boston are considered ‘fair value’ and Chicago is ‘under-valued’, the only one of the top 20 list to be so.
However, there’s no room for complacency.
"The recovery in the US housing market following the bursting of the housing bubble in 2007 has taken national home prices to new heights. In our opinion, housing affordability is significantly more challenged than conventional wisdom posits," said Jonathan Woloshin, Co-Head of Americas Fundamental Research at UBS Wealth Management's Chief Investment Office.
While real housing prices have increased 23% since 2012, San Francisco has seen a 65% rise and despite a recent slowdown are 6% above the national average UBS says. Wages have only increased 10% in the past 5 years.
The city most at risk of a housing bubble in North America – and globally – is Toronto. It is joined in the ‘at risk’ category by Stockholm, Munich, Vancouver, Sydney, London, and Hong Kong.
More market update:
Home prices may be rising to unaffordable levels in many US markets but only one American city features in the global top 10 listing of financial centers at risk of a bubble.