Chicago has a GDP the size of London (real estate, property tax)

[Space_League]

Chicago has a GDP the size of London...



Why is it so affordable compared to other cities its size?

[damba]

We have more space to build and property costs/rents are much, much higher in London.

[PerseusVeil]

If Chicago, just like the rest of the Midwest, had the same demand that booming cities are currently seeing then it would be substantially more expensive than it is. Instead Chicagoland has grown by approximately 72,000 in the last 7 years total, representing less than 1% growth.

Some of the early growth the metro area was posting earlier this decade has also been wiped out already. At this rate Chicagoland is going to finish at roughly the same size it was in 2010.

[eureka1]

Wow.

[emathias]

People that watch cities have known this forever.

Chicago is less of a good deal than it was 20 years ago when I moved here, but or taxes have gone from "average" for the US to in the top 20%. The increases in property tax also depressed real estate prices, which means homeowners here have not participated in equity creation the way people in the coasts have. That's not an expense, but it's a substantial opportunity cost.

Chicago is expensive, just not in the same way as other global cities.

[Maintainschaos]

I mean, WRT London, London offers some things on a scale that Chicago just can’t match. More to the point: GDP and desirability aren’t the same thing.

[Hiruko]

I'm a little skeptical. What did they define 'Chicago' as and what did they define 'London' as?

[damba]

Originally Posted by Maintainschaos

I mean, WRT London, London offers some things on a scale that Chicago just can’t match. More to the point: GDP and desirability aren’t the same thing.

Exactly.

[damba]

Originally Posted by Hiruko

I'm a little skeptical. What did they define 'Chicago' as and what did they define 'London' as?

Look at the cited population figures. It’s most likely using the Chicago MSA and London equivalent.

[BuhbyeRham]

Not really surprising. This is what makes "Brexit" such a stupid move (and why most who live in London opposed it). It would be like the Upper Midwest, with Chicago as its capital, deciding to withdraw from the rest of the US. London, like Chicago, isn't really capable of being a major world economic center on its own, without being part of a larger successful alliance.