have helped to quell Toronto’s risk of a housing bubble, but the city’s real estate market remains woefully overvalued., with a score of 1.21.
The annual index scores the housing markets of 25 select cities across the world on how at-risk they are of a housing bubble. Cities with a score between 0.5 and 1.5 are considered overvalued, while anything over 1.5 represents a bubble risk. Only two cities were deemed at-risk in the 2023 edition of the Index — Zurich and Tokyo — a significant downgrade from last year, when nine cities were placed in the bubble risk category. In 2022,"Low financing costs have been the lifeblood of global housing markets over the past decade, driving home prices to dizzying heights," the report reads. "However, the abrupt end of the low interest rate environment has shaken the house of cards.