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We are moving to Chicago in the next couple of months for my husband’s job and we are looking for suggestions on where to buy a house in the suburbs. We will likely be in the home 7-10 years and would like to be in a desired area to making our home purchase a good investment. Our budget is $1 million.
Priorities:
Family - We are starting a family very soon so looking for a good area for families. We would like to purchase a home with more of a neighborhood feel versus a busy street. We would like a decent yard. We would like a good school district - from what I have read, it seems like all are great but I still wanted to mention it.
Commute - We would like to be within a 45-minute train commute to the Loop area.
Downtown/Walkability - We are able to walk everywhere now which we love. I know we will have to give that up with suburb life but we would still like a little downtown. We are open to at the very least driving a few minutes and being able to walk around a downtown. It does not have to be anything amazing, just something would be nice.
I have gone through all recent posts on this site before posting.
Last edited by citytosuburbs0; 03-10-2021 at 02:01 PM..
We are moving to Chicago in the next couple of months for my husband’s job and we are looking for suggestions on where to buy a house in the suburbs. We will likely be in the home 7-10 years and would like to be in a desired area to making our home purchase a good investment. Our budget is $1 million.
Priorities:
Family - We are starting a family very soon so looking for a good area for families. We would like to purchase a home with more of a neighborhood feel versus a busy street. We would like a decent yard. We would like a good school district - from what I have read, it seems like all are great but I still wanted to mention it.
Commute - We would like to be within a 45-minute train commute to the Loop area.
Downtown/Walkability - We are able to walk everywhere now which we love. I know we will have to give that up with suburb life but we would still like a little downtown. We are open to at the very least driving a few minutes and being able to walk around a downtown. It does not have to be anything amazing, just something would be nice.
I have gone through all recent posts on this site before posting.
Good investment is subjective. I advise people buying real estate in the Chicagoland area to treat their primary residence as an expense rather than an investment. For all the hoopla about the 'hot market,' sales prices are still down from the mid-2000s. A lot of the homes that are finally selling in my area, Lake Forest, are still selling for less than they were purchased for in the '80s and '90s. I purchased my own home for almost $200k less than it sold for in 1991, and it is only 32 years old with mechanicals, a paver driveway, and a roof that have been done within the last 7 years. Carrying costs—taxes, utilities, maintenance, and insurance—in Illinois are about as high as you could possibly get. Understand, that $1 million home is typically going to come with an $18-20k annual tax bill—at the very least. Long story short, not losing a fortune should be your primary concern. Hitting the property jackpot is highly unlikely.
That being said, you have a lot of options. With your preferences and constraints, I think that everything along the southern half of the North Shore are good candidates—Evanston, Wilmette, Kenilworth, Winnetka, Glencoe, Glenview, and Northbrook are worth a look. Communities away from the lakefront like Park Ridge, Arlington Heights, Palatine, Oak Park-River Forest, Riverside, La Grange, Western Springs, Hinsdale, and Clarendon Hills are also worthy of consideration. I'm sure there are others that people can opine on.
Good investment is subjective. I advise people buying real estate in the Chicagoland area to treat their primary residence as an expense rather than an investment. For all the hoopla about the 'hot market,' sales prices are still down from the mid-2000s. A lot of the homes that are finally selling in my area, Lake Forest, are still selling for less than they were purchased for in the '80s and '90s. I purchased my own home for almost $200k less than it sold for in 1991, and it is only 32 years old with mechanicals, a paver driveway, and a roof that have been done within the last 7 years. Carrying costs—taxes, utilities, maintenance, and insurance—in Illinois are about as high as you could possibly get. Understand, that $1 million home is typically going to come with an $18-20k annual tax bill—at the very least. Long story short, not losing a fortune should be your primary concern. Hitting the property jackpot is highly unlikely.
That being said, you have a lot of options. With your preferences and constraints, I think that everything along the southern half of the North Shore are good candidates—Evanston, Wilmette, Kenilworth, Winnetka, Glencoe, Glenview, and Northbrook are worth a look. Communities away from the lakefront like Park Ridge, Arlington Heights, Palatine, Oak Park-River Forest, Riverside, La Grange, Western Springs, Hinsdale, and Clarendon Hills are also worthy of consideration. I'm sure there are others that people can opine on.
Thank you for the reply! We’re aware of the high taxes. I was thinking property value would increase, and we’d see a better increase in highly desired areas, so this is eye opening.
Thank you for the reply! We’re aware of the high taxes. I was thinking property value would increase, and we’d see a better increase in highly desired areas, so this is eye opening.
Hiruko isn't wrong, there are no guarantees with respect to property appreciation in and around Chicago these days, you'll need to pick your town or area very carefully. In addition to the fallout from Covid and the civil unrest not being fully known, the property tax situation is definitely a drag on real estate prices here. I'm not trying to turn you off on moving here, it can be a good place to live and work. You just have to be "smart" in your choices. I would look hard at picking up a "distressed" property in a very good neighborhood (maybe in foreclosure, a little run down, etc.) and put the difference in cost into fixing it up to your liking. In your price range, you're likely going to redecorate to fit your tastes anyway, I would think, so you may as well not pay for updates twice. Buy location, a desirable lot (say, on higher ground to avoid water woes), Good Bones, and make improvements over time as your budget and priorities dictate, especially with respect to things like landscaping. I myself expect to sell my house for far less than I could have sold it for in 2006 (inner ring south suburb). Unfortunately, I don't have a recommendation for a location, Hiruko has a good reputation for area knowledge. I might go so far that "north" is preferential to "south" when it comes to Chicagoland, but the Devil is in the Details. There are places like Willowbrook, where residential property taxes are subsidized by commercial and industrial presence, Elk Grove Village may be another - but taxes are only a piece of the puzzle.
I would also pay close attention to your commute, a shorter commute will pay for itself both in wear and tear on your vehicle, but over ten years, your time as well. Throw a little bad weather into the mix, and normal commute times can increase greatly on most all expressways. Make your life easier by keeping it as short as possible. I only worked maybe nine miles from work, and expected a half-hour each way, and it often grew to forty or forty-five minutes depending on time of day and weather. Over the course of my 35-year career, I would have been far ahead to move nearby early on, and regret that I did not. Good Luck.
Hiruko isn't wrong, there are no guarantees with respect to property appreciation in and around Chicago these days, you'll need to pick your town or area very carefully. In addition to the fallout from Covid and the civil unrest not being fully known, the property tax situation is definitely a drag on real estate prices here. I'm not trying to turn you off on moving here, it can be a good place to live and work. You just have to be "smart" in your choices. I would look hard at picking up a "distressed" property in a very good neighborhood (maybe in foreclosure, a little run down, etc.) and put the difference in cost into fixing it up to your liking. In your price range, you're likely going to redecorate to fit your tastes anyway, I would think, so you may as well not pay for updates twice. Buy location, a desirable lot (say, on higher ground to avoid water woes), Good Bones, and make improvements over time as your budget and priorities dictate, especially with respect to things like landscaping. I myself expect to sell my house for far less than I could have sold it for in 2006 (inner ring south suburb). Unfortunately, I don't have a recommendation for a location, Hiruko has a good reputation for area knowledge. I might go so far that "north" is preferential to "south" when it comes to Chicagoland, but the Devil is in the Details. There are places like Willowbrook, where residential property taxes are subsidized by commercial and industrial presence, Elk Grove Village may be another - but taxes are only a piece of the puzzle.
I would also pay close attention to your commute, a shorter commute will pay for itself both in wear and tear on your vehicle, but over ten years, your time as well. Throw a little bad weather into the mix, and normal commute times can increase greatly on most all expressways. Make your life easier by keeping it as short as possible. I only worked maybe nine miles from work, and expected a half-hour each way, and it often grew to forty or forty-five minutes depending on time of day and weather. Over the course of my 35-year career, I would have been far ahead to move nearby early on, and regret that I did not. Good Luck.
That’s my main question - what are the “very good neighborhoods”? As an example, from what I have learned, it seems like Hinsdale will always be desirable. Do you think that’s accurate and what other areas are very good in your opinion?
As far as the commute, my husband will take the Metra and I will be working from home.
For all the hoopla about the 'hot market,' sales prices are still down from the mid-2000s.
Prices bottomed out in 2012 and have been increasing steadily ever since (overall...there are always exceptions to the rule). Does 9 years make a trend, or will people forever refer back to the massive housing price bubble that Chicago experienced from 2000-2008? Back then this city was massively overvalued relative to other non-coastal cities, but today Chicago home prices in nice areas are on par with a long list of “hot destinations” like Denver, Austin, Dallas, Charlotte, Nashville, Tampa, Atlanta, etc etc. In the neighborhoods in those cities that are equivalent to our Hinsdale, Winnetka, etc, very nice 4-5 bedroom homes go for ~$350/ sq foot, or about $1.2-1.5m...same as here.
Taken together, the steady price growth for 9 years along with fair relative values...can’t we just say that the housing market is pretty normal and healthy?
Prices bottomed out in 2012 and have been increasing steadily ever since (overall...there are always exceptions to the rule). Does 9 years make a trend, or will people forever refer back to the massive housing price bubble that Chicago experienced from 2000-2008? Back then this city was massively overvalued relative to other non-coastal cities, but today Chicago home prices in nice areas are on par with a long list of “hot destinations” like Denver, Austin, Dallas, Charlotte, Nashville, Tampa, Atlanta, etc etc. In the neighborhoods in those cities that are equivalent to our Hinsdale, Winnetka, etc, very nice 4-5 bedroom homes go for ~$350/ sq foot, or about $1.2-1.5m...same as here.
Taken together, the steady price growth for 9 years along with fair relative values...can’t we just say that the housing market is pretty normal and healthy?
Thank you for the info! Any suggestions on areas that are better than others?
I would check out Elmhurst, Western Springs, Clarendon Hills, Wilmette (central area), Evanston (northwest). Good areas, good elementary schools, train to loop, home options in your price range. Doesn’t sound like high school choice is a concern based on your timeline. CH and WS have teenie downtown areas but quick access to La Grange and Hinsdale.
Thank you for the info! Any suggestions on areas that are better than others?
Follow the money - it largely depends on where you want to live, City-Data has a mapping function where you can look at average home prices, average income, etc.. Obviously, "Up and Coming" is preferable to "Established and Declining" even when both have the same income per capita or home value. Winnetka just got named "best city" by someone or other, but a million is probably on the lower end there. However, the age-old advice is to "Buy the cheapest property in the best neighborhood", so maybe it would be worth a look. You certainly don't want to buy a seven-figure home where they only represent five percent of the housing stock, and stick out like a sore thumb - I would think you would want to buy a million-dollar home where that value falls in the 50% or higher bracket of all housing stock. Maybe Oakbrook, Burr Ridge, Hinsdale, or Western Springs, if you decide you prefer being west of the city. I think Downers Grove has a nice downtown area, others speak highly of LaGrange.
I really can't think of too many South suburbs that fall into that range - maybe some areas of Orland or Palos Park, unless you go further out into Homer Glen, then a million-buck home might be "normal" - Equestrian Estates (unincorporated Will County near Lemont?) used to cater toward horse owners, and there are subdivisions that cater to General Aviation enthusiasts (Brookridge in Downers Grove has its own private airstrip and has many seven-figure homes). If you're looking for nearby Metra or Amtrak access, that will narrow it down some. Personally, I'd want at least a half-acre for that value of home, and maybe even an acre, especially in the South suburbs.
I can't speak to the North suburbs, Hiruko will likely provide. Then you have the city proper - from what I understand, you want to pretty much stay north of the Loop, especially near the lake, although there are plenty of seven-figure condos near downtown. I'm not a big fan of the city itself, but plenty of folks are. My guess is there are some great deals available due to folks wanting to get out of the city due to Covid and rioting, 2020 sure wasn't much of an endorsement for living in Chicago proper. You'll find plenty of folks here with the opposite opinion. Someone is sure to advocate for living in Indiana and commuting, to get lower taxes and more home for the money.
I don't believe you mentioned school districts in your original post, do you not have kids, or intend to homeschool, or go private? How important is being close to public spaces for you (like parks, museums, the lakefront, zoos, golf courses, and Forest Preserves, which are one of Chicago's hidden gems?). How important is it to you to have ethnic or racial diversity where you live? How sensitive are you to crime? Do you want your own pool, or a great park district? All of these factors will rule in or out some areas.
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