[tacomonstrous]

>Part of what's keeping Chicago home prices low may be a relatively high property tax that's predicted to increase in the near future, in order to stabilize underfunded pensions.

Is it really noticeably higher than other comparable cities with good public transit? Also, in my experience, most people don't make real estate decisions based on underfunded pension liabilities.

It's more likely that prices are low for the simple reason that inventory is high: Chicago is geographically massive compared to its coastal brethren like SF or Boston. Even so, if you want to live in a 'hip' neighborhood like Lincoln Park or Wicker Park, you'll still find yourself footing a goodly sum of money. It's neighborhoods like Rogers Park or Bridgeport that are more reasonably priced. This is without even going as far as more denuded areas like Englewood.

[mercutio2]

Yes, the Illinois fiscal situation is dramatically, vastly worse than California or New York’s situation.

[tacomonstrous]

I was referring only to the property taxes. I'm of course aware of the severity of the pension situation both in IL and in Chicago Public Schools.

[mercutio2]

The contention among some folks is that since real estate is the only captive taxation target (people, and businesses, can leave) for Chicago, the only realistic future scenario for resolving Chicago and Illinois’s pension insolvency is to dramatically raise property taxes. That, in turn, suppresses demand for assumed in-future-more-expensive real estate.

Very Georgist!

[tacomonstrous]

I understand that. I'm just asking for actual evidence of this a) happening, b) dampening current property values.

[mercutio2]

Well I, for one, grew up in Chicago, great city, but wouldn’t consider buying real estate there specifically because of the fiscal situation, so you’ve got one data point for reduced demand.

[tacomonstrous]

Okay, but I know 50 other people who have bought real estate there. We would as well, if we weren't on the East coast for my job. I don't see any indication that Chicago is cooling as a property market.