Whether you prefer the trendiness of Wicker Park or the stunning lake views of Old Town, Chicago is a first-time home buyer haven. We spoke with Movoto Real Estate Certified Agents Deborah Swoope and Ralph Waller to learn the most important things you need to know about house hunting in The Windy City.
1. There Are Lots Of Homes On The Market
With so many homes for sale (right now there are more than 14,000 on the market), there’s less competition among buyers than in other hot markets. This means you’ll have a fairly good shot at getting the house you want. There are lots of new condos being built in the city center, too
2. Plain And Simple—Chicago Is Affordable For Such A Big City
Although the median list price in Chicago is currently $234,900, it’s easy to find great homes that clock in well under $200,000.
With the median household income of the city at $47,010, Chicago’s affordability is great when compared to other bustling metropolises. Compared to New York City, with the median list price at a whopping $539,000 and the median income at only $39,195, Chicago sure has a right to brag.
3. Where You Buy Isn’t Limited To How You Get Around, Unlike In Other Big Cities
If you’re not a fan of shelling out for gas money and car insurance, there are affordable public transit options like bus lines and the “L” that will take you from neighborhood to neighborhood, making Chicago a great place for commuters.
In other big cities like San Francisco, the subway line only goes through one central part of the city, leaving the outskirts with minimal public transit options.
Like the car lifestyle? That’s barely a problem—unlike the auto-unfriendly layouts of New York City and Boston, Chicago is on a grid system with wide streets. It’s not too difficult to find street parking, and traffic isn’t typically awful with an average commute time of 32.5 minutes.
4. Chicago Property Taxes Have Increased 50 Percent In Five Years
While the home values in Chicago haven’t recovered as much as other major cities in the country, the property taxes have continued to increase. According to Movoto Certified Agent Deborah Swoope, the high property taxes are having a negative effect on the housing market.
When she gets clients who are interested in moving to Chicago, she has to be adamant in explaining how the high taxes can really affect a homeowner’s budget.
“I try my best to work with clients that are already pre-approved, and nine times out of 10 their lender would have told them about the real estate taxes already,” she said, “Sometimes a client can afford the amount of money needed to get their home, but then they can’t go over a certain amount in taxes, so the ratio doesn’t work out. If taxes were lower, they’d be able to afford more house.”
5. Unlike In Other Major Cities, There’s No City Income Tax
The property taxes in Chicago might be the second highest in the state of Illinois, but you don’t have to pay a city income tax like you do in many other major metropolitan areas like New York City.
When you’re adding up all the other taxes you’re paying as a homeowner, it’s nice to know that you’re saving some cash when it comes to this aspect. You can rest assured that if you buy a home in The Windy City, you won’t be paying taxes to it.
6. The Crime Rate Is Improving Faster Than In Other Major Cities
While Chicago is stereotypically known to be rougher around the edges, the city’s overall crime rate is actually at a historical low.
As the crime rate continues to drop, Chicago is on track to have the lowest violent crime rate since 1972, and the lowest homicide rate in almost 50 years. Other major cities like New York City show rising gun violence rates, while Los Angeles shows rising violent crimes rates.
The city as a whole is seeing clear improvements, but if you’re looking to move to a neighborhood of Chicago with extremely low crime rate, there are many to choose from for such a big city. Lincoln Park, West Town, and Logan Squareare just a few examples of many Chicago areas with low crime rate.
7. Small Space Can Be An Issue For Many Home Buyers
Bedrooms and closet space are a premium. According to Waller, most of the housing in Chicago was pre-World War I, when people had smaller furnishings and clothing needs were minimal.
Accordingly, many homes have tiny bedrooms and closets. “Most of the bedrooms won’t fit today’s oversized beds and wardrobes, and that’s a big frustration for area buyers,” Waller said.
8. Expect More Green Space Than You’re Used To In The City
For such a large metropolitan city, Chicago has it’s fair share of green space. After the Great Chicago Fire of 1871, the city was rebuilt with a plan to make sure that parks are accessible to everyone, with many neighborhoods walking distance from parks.
Millenium Park is filled with family-fun activities, from free concerts and public art to a picnic-perfect grassy field and, of course, “The Bean.” Fun fact: The biggest park in Chicago is 50% bigger than Central Park.
9. You’re Sure To Find An Architectural Style You Love
Speaking of Millenium Park, the architecture is worth mentioning with its postmodern vibes and interesting sculptures. But the city as a whole is known for its astonishing architectural feats.
If the city having beautiful architecture isn’t a reason enough to move there, maybe the residential architecture will, with Chicago cottages and loads of traditional Chicago bungalows being remodeled.
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