Miami is the number one city in the world that could see a housing crash if one were to happen.
That’s according to the Union Bank of Switzerland (UBS) recent Global Real Estate Bubble Index, which ranks Miami as number one among 20 major cities worldwide. Miami was followed by Tokyo and Zurich.
A housing bubble happens when property prices increase above their underlying value.
The UBS report doesn’t believe a crash is imminent, but it does point out some of the reasons why Miami is vulnerable.
· Miami’s inflation-adjusted home prices have climbed faster over the past 15 years than any other city in the UBS study.
· The UBS score says the Miami housing market is not normal and is currently a ‘high risk’.
· 44 out of 50 major US metros are seeing properties linger on the market longer than usual, Miami is the area worst hit.
· Houses in Miami are sitting unsold for nearly three months — almost four weeks longer than a year ago.
· Property prices have also plummeted in Miami, sparking fears that a crash could be on the horizon.
· The average sale price of Miami homes was $595,000 in July, down from $640,000 the year before.
· Miami’s current price-to-rent ratio has surpassed even the measure of the 2006 U.S. housing bubble.
UBS points out a huge reason why many condo owners are selling is from the state’s over regulation following the collapse of the Surfside condos from 2021, including higher insurance premiums.
From July 2024 to June 2025, Florida has lost approximately $109 billion in total market value due to decreasing property values, yet local property taxes for many remain high.
