Chicago homes aren’t exactly cheap. But compared to other major U.S. cities, home prices in the Windy City are generally within reach of household earning power. Here’s the research from ATTOM Data Solutions, as published in Crain’s Chicago Business, along with our own insights!
First, let’s point out that the study did not consider property taxes or other expenses. Please keep property taxes in mind when comparing homes! Your costs of home ownership will also include homeowner’s insurance premiums, plus maintenance and utility costs. Depending on your mortgage situation and the home you choose, you may have private mortgage insurance (PMI) and homeowner’s association dues as well.
Without considering any of the above costs, you’d need an annual income of $59,9000 to afford a Cook County home at the median price of $200,000. (“Median” means half of Cook County homes sold for more than this amount, and half sold for less.)
Nationwide, a buyer needs to have a household income of just over $66,000, to afford a home purchase at the national median price of $237,500. Again, this does not include property taxes or any other home ownership costs. In some markets, home buying power is slipping away as prices rise faster than incomes.
While Cook County remains statistically affordable, there’s one glaring problem: home inventory in the $200,000 price range is very lean. Homes might be more affordable here, but finding affordable homes that are available on the market has been the challenge. Be sure to work with Chicago area home buying experts who can notify you when new listings reach the market!
StartingPoint Realty – help for first-time home buyers!
StartingPoint Realty specializes in serving first-time home buyers throughout Chicago and the Northwest suburbs. We provide complete education and guidance during the entire home buying process! Attend a free home buying seminar to get started!
We provide a number of terrific resources to help you become a successful home buyer! Check out our list of home buyer assistance programs on our website!
Always feel welcome to contact us for help with your Chicago home buying questions!
Ryan Gable Broker/CEO Starting Point Realty
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