Source of income for residents of the north shore? (Chicago: for sale, apartments)

[MichiVegas]

Originally Posted by jman07

I guess I'm assuming most of the nice homes are 1 million and over. To get a nice home in Carmel Indiana outside Indianaoplis cost around 750k, so I'm assuming its at least double in Chicago. Doctors make like 200k a year, not enough for the North Shore IMO.

I'm still trying to understand why you think this. Why would you judge affordability by the nicest homes, and not the housing market as a whole?

I believe Kenilworth, a tiny North Shore village, has the highest median household income in Chicagoland. Yet the median income in Kenilworth is only a little over 200k.

So how can you claim that 200k is "not enough for the North Shore", when the average family in the richest North Shore town makes around this amount?

200k is a lot of money. And that's just one salary. If the spouse is working, even part-time, you're talking 250k, at least. A lot of people have seven figures in the bank/investments, plus they have existing real estate equity. And the average North Shore home isn't even 1 million.

I know lots of people who live in the North Shore, and few are pulling 200k. Doesn't seem to be a problem.

Many doctors, BTW, are not making close to 200k. Many others are making far more, but 200k is still a lot.

And I find it hard to believe that the minimum cost of a nice home in Indiana is 750k. That sounds like a bigger, newer construction house, with all the amenities, in a top-tier neighborhood.

[pvande55]

I thought Commodities traders made up a large part of them, especially in the old days of open outcry.

[chet everett]

Traders are certainly well represented in all the costly spots in the burbs as well as Chicago. The shift toward folks that used to be pit traders to be doing proprietary trading electronically has somewhat spread out folks into areas that do not have top notch rail service but tradition is still a big draw...

[midwest1]

There is tons of inherited wealth on the North Shore. Even in towns that were considered nouveau riche a few decades ago now have third or fourth generation wealth. Not hard to afford a million dollar home if you inherit several million dollars...

[jman07]

Originally Posted by MichiVegas

Why would doctors be "priced out of the North Shore"? Doctors do rather well for themselves in the U.S.

There's still tons of real estate under $1 million on the North Shore, and a two-income couple, even non-managerial level, can easily make enough to afford something nice. Even under 500k is doable inland.

I just looked at homes on zillow for winnetca, and all of the bigger homes were over 1.5 million. You are supposed to buy 3 times your income. That means you would need to pull in at least .5 million a year for a nice large "rich" home. Doctors don't make that. Doctors are considered rich in mid and small cities, not in the richest suburbs of major cities. I guess they could "afford" "a" home, but nothing at all impressive for the area. In case you haven't figured it out, the north shore is a small area, and there are ALOT of business owners and executives who make millions a year who buy into these exclusive areas.

[MichiVegas]

Originally Posted by jman07

I just looked at homes on zillow for winnetca, and all of the bigger homes were over 1.5 million.

Again, why are you looking at "all of the bigger homes in Winnetka"? Why not look at average homes in Northbrook?

The question was whether a doctor could afford the North Shore, not whether a doctor could automatically afford the fanciest homes in the richest suburb. It's like asking "can I afford a condo in Chicago", and then you respond by only showing the fanciest condos on the Gold Coast.

Most North Shore homes are well under 1 million, and many are under 500k. Obviously if you want a multi-million home in Winnetka, that's a different story, and you better come to the table with well over seven figure net worth, and nice sources of income.

And one's income does not necessarily determine one's buying power, as people have assets independent from income from employment. My net worth is mostly unrelated to my present employment, and I can afford Winnetka, but you wouldn't know it looking at my W-2.

[JacksonPanther]

Originally Posted by midwest1

There is tons of inherited wealth on the North Shore. Even in towns that were considered nouveau riche a few decades ago now have third or fourth generation wealth. Not hard to afford a million dollar home if you inherit several million dollars...

Exactly. I know people in the USA want to assume that everyone "pulled themselves up by their own bootstraps," the reality is that a lot of people chose the right parents.

But inherited wealth does not fit the trope of "anyone can be successful if they work hard," so we don't talk about it.

[JacksonPanther]

Doctors, like any other field, can make more money if they're entrepreneurial.

If you become a doctor, but then just work in a hospital, you will do OK financially. But if you open your own practice, that's when things can change. If you're a specialist with your own practice, and have surgery days as well as office days, now you're in the upper echelon.

If you are a top surgeon, a chief surgeon at a hospital, and you teach, and you have a practice, you can live wherever you want.

[jman07]

Originally Posted by JacksonPanther

Exactly. I know people in the USA want to assume that everyone "pulled themselves up by their own bootstraps," the reality is that a lot of people chose the right parents.

But inherited wealth does not fit the trope of "anyone can be successful if they work hard," so we don't talk about it.

You don't inherit wealth until your parents pass away and your own career is almost over anyways. Usually the kids become successful on their own and have their own incomes.

[JacksonPanther]

Originally Posted by jman07

You don't inherit wealth until your parents pass away and your own career is almost over anyways. Usually the kids become successful on their own and have their own incomes.

Grandparents often leave to their grandkids. Enough to purchase a first home, for example (and I meant purchase, not just the down payment).