Chicago is up for another boom ? (Wellington: low income, condominiums, house)

[im_a_lawyer]

Originally Posted by Vlajos

Lol, you may not be poor, but you certainly don't understand economics or real estate. I hope you're a better lawyer.

Where was I wrong?

Originally Posted by oakparkdude

Like it or not, the past decade has been very good for the upper end of the income scale while overall incomes have stagnated as you noted. Obviously, the families buying 700k properties aren't from the 50th percentile of income.

Right, so those people are far from the majority yet all the new housing is catering to them or neighborhood boards who are afraid of inexpensive housing because that will lower their own home values.
If the city wants to attract more residents, then it should come up with plans to have as much affordable housing as possible. The logic here is simple: cheap housing = more disposable income = booming economy, and instead we have the opposite because so much of our income is locked in to maintain these boom and bust real estate cycles...

[Vlajos]

Originally Posted by im_a_lawyer

Where was I wrong?



Right, so those people are far from the majority yet all the new housing is catering to them or neighborhood boards who are afraid of inexpensive housing because that will lower their own home values.
If the city wants to attract more residents, then it should come up with plans to have as much affordable housing as possible. The logic here is simple: cheap housing = more disposable income = booming economy, and instead we have the opposite because so much of our income is locked in to maintain these boom and bust real estate cycles...

Yes, you are wrong. The median price of a sfh in Chicago is like $175K. There are probably a couple hundred thousand in the city at that price or below. If you include the suburbs who knows what the number is.

I'm not sure what you want, homebuildrrs are looking to make money. They build what is in demand. Sometimes they overbuild, sure.

[im_a_lawyer]

Originally Posted by Vlajos

Yes, you are wrong. The median price of a sfh in Chicago is like $175K. There are probably a couple hundred thousand in the city at that price or below. If you include the suburbs who knows what the number is.

April home sales up 25.3 percent from a year ago; Statewide median price at $145,900 | Illinois Association of REALTORS®

The median price of a home in the city of Chicago in April 2013 was $222,000 up 22.0 percent compared to April 2012 when it was $182,000. Chicago condo prices also saw strong gains for the month, posting a 21.1 percent jump to $272,500.

Originally Posted by Vlajos

I'm not sure what you want, homebuildrrs are looking to make money. They build what is in demand. Sometimes they overbuild, sure.

Not blaming developers here. Mainly the city planners, greedy neighborhood associations, federal government and their dumb "home-ownership" policies and just greedy short sighted people in general. If the city wanted, they could make the city more affordable but apparently people don't want that as everyone is cheering when home prices go up 20%...

[Vlajos]

Originally Posted by im_a_lawyer

April home sales up 25.3 percent from a year ago; Statewide median price at $145,900 | Illinois Association of REALTORS®






Not blaming developers here. Mainly the city planners, greedy neighborhood associations, federal government and their dumb "home-ownership" policies and just greedy short sighted people in general. If the city wanted, they could make the city more affordable but apparently people don't want that as everyone is cheering when home prices go up 20%...

Regardless if the median home price is 175 or 225, that's affordable to the vast majority of people in the metro. There are hundreds of thousands of homes out there at afforbable prices. In January 2014, the median price was $157K.

What do you want city planners to do?

[im_a_lawyer]

Originally Posted by Vlajos

Regardless if the median home price is 175 or 225, that's affordable to the vast majority of people in the metro. There are hundreds of thousands of homes out there at afforbable prices. In January 2014, the median price was $157K.

It's 275K and that's including every ghetto on the southside. The real median is into the 300s. Also, you people are still thinking of "affordability" in terms of monthly mortgage payments which is part of the problem. 30 year 4% mortgages will be over soon. This whole experiment has failed horribly. Let's do something else.

Originally Posted by Vlajos

What do you want city planners to do?

Zoning laws that favor multi-unit housing by raising minimum floor area ratio
Abolish minimum parking requirements
Land value tax
Bring back mixed-use zoning
Inclusionary zoning - certain % must be affordable
Exclusionary zoning - ban big box large lot low density blocks
Improve the quality of public transportation
...

The city would come back with a vengeance but unfortunately. under those policies, real estate prices would fall dramatically and too many people holding 30 year mortgages on overpriced property would lose out so this is why no politician will ever propose something like that.

[Vlajos]

Originally Posted by im_a_lawyer

It's 275K and that's including every ghetto on the southside. The real median is into the 300s. Also, you people are still thinking of "affordability" in terms of monthly mortgage payments which is part of the problem. 30 year 4% mortgages will be over soon. This whole experiment has failed horribly. Let's do something else.




Zoning laws that favor multi-unit housing by raising minimum floor area ratio
Abolish minimum parking requirements
Land value tax
Bring back mixed-use zoning
Inclusionary zoning - certain % must be affordable
Exclusionary zoning - ban big box large lot low density blocks
Improve the quality of public transportation
...

The city would come back with a vengeance but unfortunately. under those policies, real estate prices would fall dramatically and too many people holding 30 year mortgages on overpriced property would lose out so this is why no politician will ever propose something like that.

According to the last Illinois realtors report for 1/14, the median single family home price was $152,000 and $251,500 for a condo, for a combined median price of $200,750.

http://www.illinoisrealtor.org/sites...-Chicago_0.pdf

These are asking prices, but they are usually very close to sales prices. Median ask is $195,000 for last week. Take a look at the January 2007 asking prices, they are significantly higher than the current asks.

Date Single Family & Condo Inventory 25th Percentile Asking Price Median Asking Price 75th Percentile Asking Price

02/17/2014 26,541 $99,999 $195,000 $359,900

January 2007 52,017 $209,347 $299,640 $451,778

Asking Prices and Inventory for Homes in Chicago Illinois | Department of Numbers


In regards to zoning changes I agree with most of what you have proposed. Unfortunately most of it is a dream. NIMBYs always want a park or something stupid instead of new housing.

[Aleking]

allot is next level

[jdiddy]

Originally Posted by im_a_lawyer

Zoning laws that favor multi-unit housing by raising minimum floor area ratio
Abolish minimum parking requirements
Land value tax
Bring back mixed-use zoning
Inclusionary zoning - certain % must be affordable
Exclusionary zoning - ban big box large lot low density blocks
Improve the quality of public transportation
...

The city would come back with a vengeance but unfortunately. under those policies, real estate prices would fall dramatically and too many people holding 30 year mortgages on overpriced property would lose out so this is why no politician will ever propose something like that.

I don't know that this would actually decrease prices, as it would increase the value of land. Still, I'd be in support of any of these, despite you arriving at them based on misunderstanding the current economics of the housing market.

[Chi-town Native]

Originally Posted by jdiddy

I don't know that this would actually decrease prices, as it would increase the value of land. Still, I'd be in support of any of these, despite you arriving at them based on misunderstanding the current economics of the housing market.

I have a bridge to sell anyone who thinks a developer is going to automatically pass along to the consumer the increased profit margins that come with residential zoning density increases. That is pure fantasy.

It's like the "new urbanism" delusion that increasing density while not providing parking will lead to less people owning and using cars. If you want to do that, you'll need to put in a lease/ownership agreement that the residents can't own a private vehicle.

[marothisu]

Originally Posted by Chi-town Native

It's like the "new urbanism" delusion that increasing density while not providing parking will lead to less people owning and using cars.

It will, but only if you provide a reason for it to happen. If you just put a bunch of people without any support business nearby, yeah it won't happen. But if you put grocery stores, restaurants, bars, clothing shops, convenience stores, etc in there - it will happen. This is common sense.