Chicago, IL Population: 2,873,790
Median family income
(per year) $46,748
Median home price $254,500
Sales tax 9.00%
Job growth %
(2000-2005) 0.70%
Test scores reading
(% +/- state average) -24.8%
Test scores math
(% +/- state average) -35.6%
Personal crime risk
(100 is nat'l average; lower is better) 351
It does not look good.
How does the median income family afford a median priced house?? The banks would have to loan out 5.4x the income for those people to qualify such a house!
Fun with math time: Per month, the principle and interest on a $254,500 home loan at 6.25% for 30 years = $1,567.00. A $46,478 year income / 12 (I'm being so nice, I'm not even taking out taxes!) = $3,895.66 a month. The Chicago median incomer in 2006 is spending 40.22% on his median priced home loan! If I add $300 a month for median taxes and insurance, the percentage would equal 47.92%!! Just short of one half of a median incomer's not yet taxed income is going to keeping him in his house!
I am suspicious of the Median home price. I believe that number is too low. Considering a 1 bed condo at Lincoln / Foster starts at $263,000!
Here is 115 homes for sale in Chicago for the $250,000 median price. As you will see, either it's a tiny condo, which taxes and condo assessments will chip further into your income, or it's in the ghetto.
Have fun!
5 comments:
Gee, with prices like that, how is every homeowning Chicagoan not working two or three jobs??? What will the massive influx of new immigrants do to earn a living??!!
"How does the median income family afford a median priced house?? The banks would have to loan out 5.4x the income for those people to qualify such a house!"
So true! If you have good credit, put 20% down (which few first timers do anymore) you could safely afford to buy a house that is 3.5 times your household income. Which means the median home should be around $165,000 to jive with the local median income.
you could safely afford to buy a house that is 3.5 times your household income. Which means the median home should be around $165,000 to jive with the local median income.
May 23, 2007 10:02 AM
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But then nobody will get rich in Real Estate!!
;-)
Doesn't math suck?
the gov't lies about the numbers for a variety of reasons. the MSM lies about the numbers to maintain the fiscal health of their advertisers. the truth can be found in the number of for sale signs and the length of time they remain. one could also search for the truth in the number of boats, motorcycles and other toys listed for sale in the various media. the retail sales numbers tell the story as well.
i, for one, am looking foreward to a deal on a vacation home and a harley.
it's all bullshit......chicago is a town of lies !!!!!!!!!!!!!!!
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