How Affordable Is Chicago Housing? The U.N. Wants To Know
November 5th, 2009 categories: Chicago Info/News, Chicago News, Chicago Real Estate News, Economic Recovery, Housing Market, Real Estate News
The Chicago housing market is a strong one, even in a struggling economy like the one we’re experiencing now. But a strong housing market generally isn’t a cheap one.
The United Nations is about to find this out.
Raquel Rolnik, the UN Special Rapporteur on Housing, is scheduled to visit seven major cities in the United States to determine just how affordable housing is in this country. She began her tour Oct. 27 with a stop at Fernwood United Methodist Church in the city’s Roseland neighborhood
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I’m not sure what Rolnik thinks about Chicago housing after her visit to Roseland. But she should know that housing in the city, whether we’re talking about condominiums or single-family homes, while not cheap is far more affordable today than it’s been since the housing boom started.
According to statistics from the Illinois Association of REALTORS®, the median sales price of single-family homes, condominiums and townhomes came in at $225,000 in September. That might seem high, but it’s actually down 16.2 percent compared to the median price of $268,600 one year earlier.
To me, this is evidence that it’s possible to find a quality house in a good Chicago neighborhood at a reasonable, if not cheap, price. And housing here has traditionally been a good value, with homeowners generally seeing their residences increase in value if they hold onto them long enough, say five or seven years.
Where many buyers struggle financially when buying Chicago homes is in coming up with enough money for a down payment. Fortunately, many FHA loans still require down payments of as little as 3.5 percent of a home’s purchase price. The first-time homebuyer tax credit of $8,000, along with the new move-up tax credit of $6,500 that Congress is considering now, are a big help in making homes feel more affordable in the city, too.
Housing prices are never going to be low in a city that is as popular and offers as many amenities as Chicago. Housing values are a direct result of location, and Chicago happens to be a location that many people want to call home. But I think you’ll find that for such a major city, Chicago actually boasts relatively affordable housing prices. Don’t believe me? Try finding affordable housing in Los Angeles, San Francisco or New York City.
Again, I have no idea what that U.N. official thinks, but for my money, Chicago is a terrific housing buy.
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