U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Illinois > Chicago
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply
 
Unread 02-12-2011, 05:13 PM
 
Location: Chicago
1,660 posts, read 1,991,808 times
Reputation: 585
I dont know why rents would be going down since the economy has improved and property taxes are going up?
Reply With Quote Quick reply to this message

 
Unread 02-12-2011, 07:15 PM
 
Location: Chicago
4,094 posts, read 933,452 times
Reputation: 688
Quote:
Originally Posted by long101 View Post
I dont know why rents would be going down since the economy has improved
The economy has only marginally improved since 2008.
Reply With Quote Quick reply to this message
 
Unread 02-13-2011, 01:11 PM
 
11,558 posts, read 2,871,477 times
Reputation: 3547
Quote:
Originally Posted by long101 View Post
I dont know why rents would be going down since the economy has improved and property taxes are going up?
As foreclosures continue to climb, you will see more homeowners become renters and more homes vacant. I suspect that in more desirable areas and more desirable units you will see rents remain level or go up. In crappy areas or crappy apartments prices might actually drop. Supply and demand.
Reply With Quote Quick reply to this message
 
Unread 02-13-2011, 01:58 PM
 
Location: Chicago
4,094 posts, read 933,452 times
Reputation: 688
Quote:
Originally Posted by Savoir Faire View Post
As foreclosures continue to climb, you will see more homeowners become renters and more homes vacant.
I disagree. I think there will be a slight increase in homeowners becoming renters because of foreclosures, but if someone can't afford their mortgage, how is that person going to afford rent? It will be back home with mommie and daddy or bro or sis for most of these people.
Reply With Quote Quick reply to this message
 
Unread 02-13-2011, 03:36 PM
 
Location: Andersonville, Chicago
2,137 posts, read 2,345,349 times
Reputation: 777
Also, foreclosed people will have bad credit, making them undesirable to many management companies or landlords.

It's always a case of supply and demand across the board. Like everyone noted, nicer apartments which more financially secure people can afford, will see less demand and maybe more renters. I'm not too worried on the whole.
Reply With Quote Quick reply to this message
 
Unread 02-14-2011, 09:02 AM
 
11,558 posts, read 2,871,477 times
Reputation: 3547
Quote:
Originally Posted by tonythetuna View Post
I disagree. I think there will be a slight increase in homeowners becoming renters because of foreclosures, but if someone can't afford their mortgage, how is that person going to afford rent? It will be back home with mommie and daddy or bro or sis for most of these people.
Many people took out mortgages of up to 400K. I seriously doubt their monthly payments are in the same ballpark as renting an apartment. Not to mention that many people foreclosing do have jobs. I doubt you will see droves of employed people in their 40's rushing home to live with mommie and daddy.
Reply With Quote Quick reply to this message
 
Unread 02-14-2011, 09:56 AM
 
4,077 posts, read 2,648,669 times
Reputation: 2928
Quote:
Originally Posted by Savoir Faire View Post
Many people took out mortgages of up to 400K. I seriously doubt their monthly payments are in the same ballpark as renting an apartment. Not to mention that many people foreclosing do have jobs. I doubt you will see droves of employed people in their 40's rushing home to live with mommie and daddy.
And if you're in that age bracket, Mommie and Daddy might not be around to help anymore..

The same renting/owning priciples that exist in Boston are also present in Chicago, although they are probably more exaggerated in Boston; there are thousands of apartments that would be impossible to afford as condos, but are more reasonably priced to renters; many apts that rent for $1500 would sell for over $300k as condos..
Reply With Quote Quick reply to this message
 
Unread 02-14-2011, 10:04 AM
 
Location: Chicago
4,094 posts, read 933,452 times
Reputation: 688
Quote:
Originally Posted by Savoir Faire View Post
Not to mention that many people foreclosing do have jobs.
If this is the case, why are they losing their homes to foreclosure?

Last edited by tonythetuna; 02-14-2011 at 11:07 AM..
Reply With Quote Quick reply to this message
 
Unread 02-14-2011, 10:24 AM
 
Location: Andersonville, Chicago
2,137 posts, read 2,345,349 times
Reputation: 777
Quote:
Originally Posted by tonythetuna View Post
If this is the case, why are they losing their homes to foreclosure?
My only guess is an ARM or interest only mortgage. I have two friends who lost their homes that way. Of course, they have no one to blame but themselves. If you knew your ARM would reset and your payment would balloon by $500 or so, what were your plans? Were you hoping you'd have a better paying job? That you would have moved?

I also know some people who did a strategic default. I have zero sympathy for them due to it being calculated business move.

Of those people I know, they ended up renting condos or other houses. Maybe some people do end up going into apartments. Sadly, too many people have 'pride' and will not 'settle' for an apartment. If I had to go through that, I'd just be happy to have a roof over my head.
Reply With Quote Quick reply to this message
 
Unread 02-14-2011, 11:03 AM
 
Location: Chicago
4,094 posts, read 933,452 times
Reputation: 688
Quote:
Originally Posted by Savoir Faire View Post
Many people took out mortgages of up to 400K. I seriously doubt their monthly payments are in the same ballpark as renting an apartment. Not to mention that many people foreclosing do have jobs. I doubt you will see droves of employed people in their 40's rushing home to live with mommie and daddy.
Quote:
Originally Posted by tonythetuna View Post
If this is the case, why are they losing their homes to foreclosure?
Quote:
Originally Posted by MannheimMadman View Post
My only guess is an ARM or interest only mortgage. I have two friends who lost their homes that way. Of course, they have no one to blame but themselves. If you knew your ARM would reset and your payment would balloon by $500 or so
Anyone that can't save at least $500 a month has no business buying a 400k condo or house.

I can't help but think that maybe if many people's spending habits changed, and their personal budgets were restructured, many of these foreclosures would be avoided provided the people were still working and making around the same amount as when they first got their mortgages.

Sorry to hear of your friend's misfortunes.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $53,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2005-2010 data
Loading data...

123
Hide US histogram

Over $47,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Illinois > Chicago
Similar Threads

All times are GMT -6. The time now is 07:05 PM.

© 2005-2013, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24 - Top