While certain cities around the world could be at risk of another housing bubble it appears Chicago will be spared this time around. A recent report compiled by Swiss Bank UBS looked at 18 cities from Vancouver to Singapore and even New York, with Chicago coming in at the very bottom, the only city on the list found to have undervalued homes.
While the report credits that to fiscal problems including the unemployment rate in Chicago, there is a silver lining. Homeowners in the Chicago-area will likely not have to worry about crashing home prices like other cities. Vancouver, particularly, came in at the very top, as the UBS study found it has the greatest risk of a housing bubble. The cities of Hong Kong, Munich, Sydney, Stockholm and London are also at a greater risk.
Chicago’s bubble score only came to -0.7, compared to a 2.14 score for Vancouver, putting Chicago in the “undervalued range”. As for the other U.S. cities on the list, Boston and New York ranked as “fair-valued” and San Francisco was ranked as “overvalued”.
The bank takes into account things like construction activities, price-to-rent and price-to-income ratios, plus measures of mortgage lending.