Chicago is Falling Behind in the Housing Market
Chicago is unfortunately falling behind other cities in the country with regards to housing prices. The prices of homes in Chicago took a larger hit in January compared to December than any other big city in the country. How is it that Chicago is struggling in the housing market in correlation to other big cities in the country where the price of housing is on the rise?
The simple answer is that the people of Chicago are struggling. People are not doing too well if the economy that they are living in isn?t doing too well either. When an economy prospers, the people will prosper.
However, the people will be in the dumps if the economy is also in the dumps. The state of Illinois currently has an unemployment rate two percentage points higher than the national rate of unemployment. Two percentage points over the national unemployment rate is a huge deal. If the people of Chicago are losing their jobs (which they are), then how are they supposed to be able to afford housing? It would be irrational to think that an individual who has just lost their job would be able to purchase a new home on no or very little income. Therefore, the price of homes in Chicago must be lowered to fit the needs of the individuals in Chicago?s economy.
Chicago?s housing market will do better when Chicago?s economy does better. When the rate of unemployment is lowered the price of housing will rise. The more individuals making money in Chicago the more money the housing market will make. The housing market in Chicago will continue to struggle until Chicago?s economy changes that.