http://money.cnn.com/2007/06/14/real_estate/housing_market_affordability/index.htm?postversion=2007061510

You will see the picture on your right with color codes. It looks like the most overvalued markets are in California, Oregan, Washington State (Seattle) and Arizona. There are a few overvalued markets on the east coast, primarily from DC region to NY/NJ/CT (tri-state) corridor. Also a few overvalued markets in Florida along the coast. Texas remained the most undervalued throughout the years with Dallas and Houston almost > 20% undervalued. It’s hard to think about this, with all the job growth, population growth, how could Dallas and Houston remain so cheap? The only reasonable explanation to me is that these locations are not land-locked, meaning, land availability is too relaxed. Job growth and populaton growth won’t overcome such relaxation of land. On the flip side, I have to admit that Dallas and Houston is the best place to relocate to because people can expect to get the highest quality of living from there. Why I say so? 1) Salary in professional jobs in Texas is not much lower than expensive east coast and west coast region. 2) Housing price is only 1/3 of either coast’s level. In that case, your expendible income is very high, leading to more spendings on vacation and other luxury items. One caution: You move into Texas, then you may never move out. The gap between Texas and either coast will be getting wider in the future. Of course, there is no reason to move out while you enjoy a higher quality of life…