Chicago Outshines Major US Cities in Long-term Housing Affordability

Despite widespread concerns about the lack of affordable housing in Chicago, recent data suggests a more nuanced picture. Over the past five decades, Chicago has outperformed other major U.S. cities in maintaining housing affordability, according to a report by Crain’s, citing RealtyHop data.

Resilience in Affordability

Comparing changes in housing affordability among the nation’s largest cities since 1970, Chicago stands out for its resilience. While housing costs have soared nationwide, Chicago's affordability metrics have shown a comparatively modest increase.

Insights from RealtyHop

RealtyHop's analysis, based on the multiple of median household income needed to afford the median-priced house, reveals that Chicago's affordability challenge increased by 33 percent from 1970 to 2022. This increase is notably lower than that of other major cities like Los Angeles, Philadelphia, Miami, and Boston.

Local Perspectives

Local realtor Lucy Hilt notes that Chicago has a reputation for offering better value for homeowners' money compared to other cities. However, Shane Lee, a RealtyHop data scientist, highlights the impact of Chicago's high property taxes, which disproportionately affect homeowners.

Property Tax Burden

In 2022, Chicago had the second-highest effective residential property tax rate among major cities, trailing only Houston. Lee suggests that lowering property taxes could ease the long-term cost burden on homeowners and make the housing market more competitive.