Journalist Natalie Moore on Affordability in Chicago (sales, apartment)

[jsk1983]

Originally Posted by lepoisson

$300K for a single family home in a big city is pretty affordable. I can't think of any major city where someone can find a decent home for under $200K that's in a safe area. Even in a place like Dallas, you'd have to move to a lower end suburb or WAY out in the country to find a place under $200K.

That $300K home in Jefferson Park would easily cost double in places like Seattle, NYC, and San Francisco.

To afford that $300K home, you'd need an income of at least $65K. That's easily doable for married people, even if both people are working lower end jobs. But where it gets ridiculous is in places like San Francisco where you can't find anything under $500K.

Can people making 65k really afford a 300k home? Seems like a bit of a stretch.

[lepoisson]

Originally Posted by jsk1983

Can people making 65k really afford a 300k home? Seems like a bit of a stretch.

Just did the math on this. With a 20% down payment, the mortgage should be around $1800/mo. That payment includes a 2% property tax and homeowners insurance.

A single person with two kids should bring home around $4000/mo after taxes. So yes, it is a bit of a stretch. A salary of $75K seems more in line with a $300K home.

[MassVt]

If both parents work, a 300K home isn't bad at all....

There's virtually nothing here in Boston at that price--even with increasing taxes, Chicago is still a bargain, considering everything you have access to..

[TBideon]

Annual salary of $65,000 gross = preapproval for $300,000-$330,000 with most reputable lenders. And if the borrower has significant assets or debts, that range will fluctuate.

[BPt111]

I give it 5-10 years before Chicago is very expensive

[TBideon]

I disagree. The city was built for 3.7 million people at its peak, and is currently stagnated in the 2.7 million range with absolutely no indications of any material growth. Certainly not compared to cities in Florida, the Carolinas, Texas, etc. Unless we begin un-incorporating neighborhoods, and god knows the legality of that, there will be many neighborhoods with affordable properties. 250 square miles can support a lot of cheap housing.

[lepoisson]

Originally Posted by BPt111

I give it 5-10 years before Chicago is very expensive

Considering most of the west and south sides are unsafe and continue to crumble, I find that very hard to believe. The population in the city would need to almost double for housing prices to skyrocket.

[Juventud Guerrero]

I want to move to Chicago from San Antonio. I think they are about the same in COL.

[Slats Grobnick]

Originally Posted by lepoisson

Just did the math on this. With a 20% down payment, the mortgage should be around $1800/mo. That payment includes a 2% property tax and homeowners insurance.

A single person with two kids should bring home around $4000/mo after taxes. So yes, it is a bit of a stretch. A salary of $75K seems more in line with a $300K home.

20% down payment would be 60K

How many people have 60K in savings??

[Maintainschaos]

Edgewater was a steal when I lived there, especially compared to comparable urban areas in the U.S.