The Beracha and Johnson Housing Ranking Index

All about the Beracha and Johnson Housing Ranking Index

The Beracha and Johnson Housing Ranking Index measures the difference between statistically estimated average home prices (long-term pricing trend) and actual average home prices for the largest metro housing markets in the US. The index follows the methodology of:
Gravatt, D., E, Beracha, and K.H. Johnson, A Note on the Estimation of the Degree of Over- or Under-Pricing of Housing Markets Relative to their Long-Term Pricing Trend, 2021, Journal of Housing Research, 2021, 31:1, 1-3. 10.1080/10527001.2021.2007584

The index uses open-source data from Zillow’s ZHVI Index as the building blocks for the Over- or Under-Pricing of each measured housing market. Over-Pricing is described as a Premium and Under-Pricing is described as a Discount. The difference between a market’s long-term pricing trend and actual average prices for a market is measured in terms of a percentage difference in order to gather an understanding of the magnitude of a market’s Premium or Discount.

Results are reported monthly in conjunction with the American Real Estate Society.