While San Francisco’s market was listed as “overvalued,” it is not deemed a “bubble risk.” In San Francisco, housing prices have gone up 65% over the past five years, not enough to make the city the most expensive place in the U.S. to buy a home (that title currently belongs to nearby San Jose, Calif. — and it’s not even close). San Francisco’s score in the UBS index is pulled out of bubble territory by the city’s “strong economic fundamentals amid the astonishing boom of tech companies,” according to UBS.
In fact, none of the eight cities that rank as top bubble risks are in the U.S.:
Property taxes are 3.9% to 6.5%. That’s insane. There’s people with a property tax bill equal to their mortgage. It’s like everyone is a renter, since you can’t payoff the property tax bill which keeps increasing.