How do people afford to live in this city? (Chicago: house, neighborhood)

[nowincal11]

I do know several former NYCers who grew up there and decided to move to Miami in the past few years. It offers the same wages in the same industries as NYC, with a much lower cost of living. They also cite Miami nightlife and two things that NYC doesn't have; good beaches all year round and the excellent weather (humidity not included).

A few NYC neighborhoods still have good schools, primarily the ethnic neighborhoods in Brooklyn and Queens, but are quickly becoming unaffordable.

In LA, the newest generation is the first that is likely to mostly grow up in apartments even if their parents make six figures.

Anyway, most of these concerns are not on the minds of 20 somethings. Mostly we are concerned about jobs decent enough to pay rent and entertainment. The entertainment must include a mix of sporting events, music venues, restaurants, and nightlife.

So cheaper options like Miami and Las Vegas will still be top destinations, especially once the recession turns around.

[EastBoundandDownChick]

I lived in NYC and I don't find anything in that article shocking at all. It all makes perfect sense if you really think about it. First off, NYC has always been a transient city. It's always had a tremendous influx and outflux of people, all throughout its history. The city has a less than 1% vacancy rate. Somehow I don't think they are hurting for newcomers. The real question is what kind of newcomers they are going to ultimately retain.
The economy plays a huge role in this obviously. It isn't necessarily that young people truly WANT to leave. But when salaries and wages are suppressed, combined with an oppressive tax rate and COL it pushes a lot of people out.
Another factor is the Wall Street money that circulates throughout the city. One out of every three dollars spent in the city is generated by Wall Street. The average worker there (this is even with support staff factored in) makes roughly 450K per year, while the average Joe makes about 50K. That creates a lot of the imbalance in the housing market and pushes out more of the middle class. I think we can all see how unstable Wall Street is as well, after the collapse of Lehman in 2008. I keep saying that until we get back to Glass-Steagall regulation the markets will be chaotic. And what regular person in their right mind would want to be in the center of all of that?
The other problem is there being too much subsidized housing and a lack of oversight in terms of who truly qualifies for it. That is another reason rents are so high. It increases the tax burden on working people. It really hits the working and middle class from all sides and unjustly hard IMO, this kind of welfare system and its lack of proper regulation.
So what you are left with are people like me. People who might have stayed in NYC if the tax rate and COL were more tolerable. I do not believe a city that is part uber rich, part uber poor, with little in-between is a healthy place to be setting down roots in. I'm glad to be back in the Midwest. I think we have a more honest work ethic and set of values in these parts for what that's worth. It was interesting to leave and see how different life is on the East Coast. I am glad I have that perspective and basis of comparison. I now know Chicago is a jewel of a place, worth much more to an ordinary young professional than NYC. It is a place where you can have a nice quality of life and still financially get ahead. Not to mention it's prettier, cleaner, and the people are classier. I wouldn't say it's perfect. But it will continue to attract and retain the type of people NYC will lose in the coming years- the middle and upper-middle class professional types like me who love city life and can actually grow and prosper there without feeling cheated. That will help keep property values normalized and COL in check if you cite the reasons listed above, and makes Chicago a solid investment.

[ole69]

Originally Posted by savalas

You do live in Logan Square, so your accusation is hypocritical.

No, it's not. I share the OP's opinion that Lakeview is an unpleasant place to be. Nothing hypocritical about that or saying "there are other neighborhoods".

[odannyboi]

Chicago is very afforable. Yea there are trustfund babies, but alot of the professionals from across the midwest desire to work in Chicago (let's be honest, its the only midwest city worth living in).

Contrary to popular belief on this forum, there are tons of middle and high paying jobs available in Chicago. A single guy could get by with 45K easily in a good neighborhood... I know people who get by making 14/hr and still go out. Roomates is the key.

[Vlajos]

Originally Posted by jman07

If you have a entry level job making 35-40k a year and have no kids it isn't hard. Lets say you have a roomy and pay 700 for rent a month. You should be able to pay for that with one paycheck. That leaves you 3 more weeks of pay for the month. Whats so hard to understand about that? The more you make the more reasons you make to spend it. There are people that win the lottery that go bankrupt.

Exactly. You don't need that much too live decently here. Have a roomate, make $35K, don't have a car (you don't need one), and you can go out often enough. You also don't need to go out to River north hot spots, plenty of cheap fun to be had around here.

[sthornt1]

Originally Posted by Drover

Many major cities have become a dichotomy of single/DINK yuppie playground and urban poverty/working class, with middle-class families getting squeezed out because the schools suck. The only practical and affordable alternative for many is to move to a non-sucky suburban school district. The only factor that makes NYC any different is that its astronomical cost of living exacerbates the issue.

I think that pretty much sums it up.

[Jandur]

Originally Posted by Vlajos

Exactly. You don't need that much too live decently here. Have a roomate, make $35K, don't have a car (you don't need one), and you can go out often enough. You also don't need to go out to River north hot spots, plenty of cheap fun to be had around here.

Or Pregame. Spend $8 on a bottle of booze, get a buzz, then spend $25 at the nice bar. It's not really that hard. Those people who are dropping $200 a the bar 1) Might not do it all that often 2) Might be able to afford it or 3) They are just 30k millionaires.

[Vlajos]

Originally Posted by Jandur

Or Pregame. Spend $8 on a bottle of booze, get a buzz, then spend $25 at the nice bar. It's not really that hard. Those people who are dropping $200 a the bar 1) Might not do it all that often 2) Might be able to afford it or 3) They are just 30k millionaires.

Yep. See so many good ideas on how to live nicely without breaking the bank!

[SJaye]

I think it is all a matter of priorities and what people chose to spend their money on. Some people like to spend money on having a lot of living space (no roommates, or a more spacious place with roommates), some spend money on travels/vacations, some on clothing, some on going out, hobbies, etc. It really doesn't seem that hard to live here on 70K/year if you understand that while you can choose to spend your money on any of the items above, you can't have it all. I, for instance, rarely spend money on clothing, fancy furniture, collectibles, etc. which frees up more money for travel and going out. However, I couldn't imagine trying to live alone in a 1000+ Sq. Ft. place in a trendy neighborhood, have a nice car, nice clothes, and go out to fancy bars with expensive drinks on a salary in that range. The people who do that must be making tons of money. I doubt that they are in the majority, even in a neighborhood like the Gold Coast, but they are the ones you notice.

[Vlajos]

I think we may be ignoring the fact that there are many tourists and suburbanites who are in Chicago at any time. The City draws visitors from all over. Visitors with money.