Move to Austin or Chicago? (Arlington, Spring: 2013, crime rates, home)

[texastrigirl]

I think they said they valued school systems as a their top priority? Back in the day most of my friends lived in the Lincoln Park area, etc. but they all moved to the burbs of Chicago when it came time for their kids to go to school. And these are native Chicagons, most of them. Just a thought. Honestly, I don't think you can even compare downtown Austin or say Hyde Park for example to any neighborhood in the city of Chicago. It's just so much bigger there - like 4 times bigger than Austin City Limits. How do you compare that??

[buffettjr]

Originally Posted by janejanejanejanejane

I would move to Texas cause you will get a pay raise by doing it. We do not have state taxes.
If you can take the heat, Austin is my fav city in Texas,I would do it!

I strongly disagree with the comment about pay raises and us having no state taxes.

First, your salary will likely be higher in Chicago to compensate for the higher cost of living. Depending on how much higher you could be better or worse off. You could get more matching for your retirement fund if your company matches into a 401(k), as a higher salary means a percentage match is more free money, for example. As for taxes, Austin has some of the highest property taxes in the nation coupled with one of the highest sales taxes in the nation. To say we pay no state taxes is flat out wrong. I live in a 1,000 sq ft home and pay $6,700 per year in property taxes. In addition, we have an unregulated home insurance industry, creating some of the highest insurance rates in the nation.

You didn't mention weather in your OP, but considering the extremes of the two places you chose, it should likely be considered. Chicago can get below 0 and spent a lot of time below freezing. Central Texas, by contrast, is statistically the hottest place in the United States of America to live this year. It doesn't cool down at night here like it does in the desert, and thus we have higher average temperatures. We just hit 125 consecutive days above 90 degrees this year, for example, with many more in store. That's consecutive without a break, even on overcast days. The total number of non-consecutive 90 degree days is likely to be far, far higher by the end of the year. We had 85 days that were at least 100 degrees or hotter. That doesn't count days like yesterday where it was 99. We have a lot of 97-99 degree days.

[Gemini1963]

I agree with buffettjr. In fact, our posts sound similar enough (see post #5 on this thread, same OP, Chicago board: pros and cons: Chicago vs. Austin) that I'm prompted to assure the OP that we're not one and the same person! Just great minds thinking (and suffering) alike....

But buffettjr's info about the taxes/salary/COL is very on-point, too.

[Roadking2003]

Comparing Chicago and Austin is quite extreme. But here are my thoughts.

Weather: Chicago has brutally cold winters and Austin has brutally hot summers. For most people, that alone will make their decision.

Cost of living: Austin is about 15% cheaper overall, with even a bigger gap for food and housing. Google it.

Schools: I'm sure both cities have some excellent schools. You just have to choose the right district.

Jobs: Austin unemployment is lower, but with the size of Chicago I suspect there wouldn't be much difference. On the other hand, Austin is a technology center.....

Higher education: Austin has UT which has outstanding education opportunities.

Cultural diversity: Chicago would have to have an edge here... it's a city that's five times as big.

[Roadking2003]

Originally Posted by buffettjr

I strongly disagree with the comment about pay raises and us having no state taxes.

Actually, the tax situation is not very important. It's total cost of living that is important.

Austin has a much lower cost of living, which shouldn't surprise anybody.

[motherofthree]

I moved from NW Indiana 4 years ago. We lived an hour drive from downtown Chicago. IN has property, sales and income tax and that combined was lower than TX property and sales tax combined. I completely disagree when people say it's cheap to live here.

[austinnerd]

Originally Posted by buffettjr

I strongly disagree with the comment about pay raises and us having no state taxes.

First, your salary will likely be higher in Chicago to compensate for the higher cost of living. Depending on how much higher you could be better or worse off. You could get more matching for your retirement fund if your company matches into a 401(k), as a higher salary means a percentage match is more free money, for example. As for taxes, Austin has some of the highest property taxes in the nation coupled with one of the highest sales taxes in the nation. To say we pay no state taxes is flat out wrong. I live in a 1,000 sq ft home and pay $6,700 per year in property taxes. In addition, we have an unregulated home insurance industry, creating some of the highest insurance rates in the nation.

Hmm, Chicago has a 5% state income tax (vs 0%) , 9.75% sales tax (vs 8.25%). The property tax rates for the Chicago area seem to vary wildly (1.45% for Chicago proper to over 5% for some outlying areas?), or maybe I'm reading it totally wrong? I'll just go with the 1.45% and assume about 2.5% for Austin.

So, if you make $100000 a year in income and own a $250000 house, your tax breakdown will look roughly like this:

Property Tax: Chi $3600 Aus $6250
Income Tax: Chi $5000 Aus $0

So your total taxes based on income and property come to about $8600/yr for Chicago and $6250/yr for Austin. So while Austin's property tax rate is indeed higher, the lack of state income tax does more than make up for it. The difference becomes larger if you go with a cheaper house, but it shrinks as your income shrinks. Then there is the difference is sales tax amounts as well. The statement about higher relative salaries in Chicago vs Austin can definitely be a bigger deal however.

However, when you look at the numbers and factor everything in, really the differences are relatively minor, you gain in one area and lose in others. And by minor I mean that if one had a definite preference for one location vs the other, chances are any "real" price differential probably would be swamped by quality of life issues (cold, heat, cuisine, athletics, education, etc).

Can't speak to the home insurance costs. And the fact that you pay $6700 for your 1000 sqft house speaks more to the value of your house (at roughly $300/sqft which is higher than avg in Austin) more than it does the property tax rate.

[buffettjr]

All good points, Austinnerd. I was simply making the case that "Texas has no taxes" was certainly incorrect.

To your point on RE taxes, it might be even more in favor of Austin however if it turns out to be impossible to find a $250,000 house in Chicago. I'm not familiar with real estate prices there or what the commute would be for a house at or below that price.

[eepstein]

It really comes down to the basic question. Do you want to live in a big city with everything that a big city has, or do you want to live in a college town that "thinks" its a big city?

Originally Posted by kh1980

My husband'd work has given him an oppurtunity to move either to Chicago,IL or Austin. We are trying to weigh the pros and cons. For a background, husband has a tech consultant job, we are immigrants and our two kids go to elementary school and we'd be ok if we have to live upto 40 mins drive away from the city. Things to consider (in order) would be better school system, job oppurtunities in tech field, future education prospects for kids, real estate prices, cost of living, community structure and cultural diversity. I have visited Chicago city but have never been to Austin. Would be really great if someone can give me comparison/suggestion! Thanks

[Rubredvelvet]

Current Chicagoan here... come and move here. Buy our home so we can leave!!!

Unless your big into city crap its a waste. Highest taxes around, very high cost of living, corrupt politicians (I know thats everywhere, but Chicago has become a joke about it), school system is incredibly weak currently, no jobs (in fact many bigger companies are leaving IL currently for surrounding states), and of course the bad weather.

But there are some positives here. If you enjoy concerts, sports, museums, etc... Chicago is great for that. To me the city is a hassle! We hate paying 20 bucks to park downtown for some event.