Both prices and sales will increase, but at a stunted rate compared with other areas, according to a forecast by Realtor.com, a website for the National Association of Realtors. The prices of homes throughout the Chicago metropolitan area are expected to climb just 1.95 percent, and sales of new and existing homes are expected to increase 2.27 percent…
Chicago’s problem is a combination of slow growth in both population and jobs, said Jonathan Smoke, an economist at Realtor.com. The area’s population is expected to increase only 1 percent next year.
Given the size of Chicago, the city should be among the nation’s top three markets for job creation, Smoke said. Instead, Chicago is ranked eighth, with job growth much stronger in areas such as Dallas and Phoenix…
Nationally, Chicago has been among the slowest areas to recover from the housing market crash. According to the S&P CoreLogic Case-Shiller Index released this week, Chicago’s home prices on average remain about 20 percent below July 2007 levels. Meanwhile, the average price for the largest 20 metropolitan areas is now above pre-crash levels.
Not good news for a region that is still the third largest in the country but suffers from a number of problems: its central city is losing residents, the state government is a mess with no long-term budget deals in sight, it doesn’t seem to have enough innovative companies or industries, and there are negative perceptions about violence. Add a slow housing recovery and both the people living there as well as those who might consider moving there may not see much to celebrate.
Actually, this is an interesting question to consider: what positives would Chicago region residents note compared to other regions? What would attract those who have the ability to choose where they want to live? Chicago may be an important global city but it doesn’t want to slowly slip into being a center solely for the Midwest.
One important trait of the Chicago region isn’t going away anytime soon: even in the world of the Internet and jet travel, it has a prime location in the middle of the United States and is a key piece of many transportation and freight networks.