Chicago home values rank among lowest in nation

Chicago ranks among the worst in terms of owning a home among 300 cities across the country, and among the worst in the top 64 largest cities in the country. A new study by WalletHub compares the health of the real estate market in 300 cities and 64 of the countries top. Chicago ranks slightly higher in terms of affordability but still among the 20 percent of the worst cities.

With home values up 5.2% from last year but affordability dropping as mortgage rates get higher, the personal-finance website WalletHub today released its report on 2019’s Best Real-Estate Markets as well as accompanying videos.

To determine the most attractive real-estate markets in the U.S., WalletHub compared 300 cities across 23 key metrics. The data set ranges from median home-price appreciation to home sales turnover rate to job growth.

Typical Suburban street view. Courtesy of Wikipedia

Health of Chicago’s Real-Estate Market (1=Best; 150=Avg.):

251^st – % of Homes with Negative Equity
200^th – Avg. Days Until Sale
172^nd – Median Home-Price Appreciation
257^th – Job Growth Rate
245^th – Foreclosure Rate
214^th – % of Delinquent Mortgage Holders
252^nd – Number of Unsold Homes Owned by Banks (REOs)
136^th – Home Price as % of Income
256^th – Population Growth Rate

Chicago ranks 284^th overall (out of 300 cities) and 61^st among 64 of the largest cities.

Whether you’re joining the real-estate business or just looking for a place to call home, it’s important to get a handle on the housing markets you’re considering before investing in a property. With unemployment falling and house prices rising, the market as a whole has been in a boom, despite the fact that the new tax code has drastically reduced mortgage interest deductions. But while home values are rising, up 5.2% from last year, fewer homes are affordable because mortgage rates are rising. However, home prices and rental rates vary widely across the U.S. based on supply and demand.

If you aim for long-term growth, equity and profit, you’ll need to look beyond tangible factors like square footage and style. Those factors certainly drive up property values. From an investor’s standpoint, though, they hold less significance than historical market trends and the economic health of residents.

To determine the best local real-estate markets in the U.S., WalletHub compared 300 cities of varying sizes across 23 key indicators of housing-market attractiveness and economic strength. Our data set ranges from median home-price appreciation to home sales turnover rate to job growth. Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.

This chart shows the top 30 Best cities to own a home

Overall Rank (1=Best)	City	Total Score	‘Real-Estate Market’ Rank	‘Affordability & Economic Environment’ Rank
1	Boise, ID	73.68	1	38
2	Frisco, TX	72.44	9	1
3	Overland Park, KS	71.69	2	57
4	Cary, NC	71.07	7	3
5	Denton, TX	70.51	3	41
6	McKinney, TX	70.23	26	2
7	Carrollton, TX	70.02	6	21
8	Durham, NC	69.67	4	37
9	Allen, TX	69.52	13	6
10	Fort Wayne, IN	69.51	5	51
11	Murfreesboro, TN	69.19	18	4
12	Austin, TX	68.47	12	28
13	Fort Worth, TX	68.23	16	27
14	Gilbert, AZ	67.99	25	8
15	Grand Rapids, MI	67.88	8	103
16	Thornton, CO	67.58	19	43
17	Spokane Valley, WA	67.12	17	83
18	Aurora, CO	67.11	11	121
19	Wilmington, NC	66.83	10	156
20	Greeley, CO	66.8	20	84
21	Denver, CO	66.8	14	131
22	Charlotte, NC	66.6	29	22
23	Nashville, TN	66.45	24	70
24	Hillsboro, OR	66.42	35	16
25	Richardson, TX	66.32	34	17
26	Lexington, KY	66.31	22	86
27	Colorado Springs, CO	66.28	28	64
28	Chico, CA	66.2	23	82
29	Seattle, WA	65.84	15	179
30	Bellevue, WA	65.69	21	140

This Chart shows the 20 worst cities

280	Mobile, AL	46.08	268	263
281	Albany, NY	46.02	286	202
282	Fort Lauderdale, FL	45.99	288	169
283	Waterbury, CT	45.85	278	233
284	Chicago, IL	45.58	283	227
285	Rockford, IL	45.18	292	167
286	Fall River, MA	45.11	279	262
287	Bridgeport, CT	44.8	285	254
288	Hartford, CT	44.63	263	297
289	Cleveland, OH	44.12	289	248
290	Flint, MI	43.25	276	298
291	Paterson, NJ	43.24	284	290
292	Birmingham, AL	42.83	291	275
293	Baltimore, MD	42.24	295	215
294	Peoria, IL	41.89	296	183
295	Jackson, MS	40.88	293	287
296	Elizabeth, NJ	40.18	294	285
297	Miami Beach, FL	39.46	298	191
298	Dayton, OH	38.76	297	264
299	Detroit, MI	33.81	299	300
300	Newark, NJ	33.31	300	299

The study shows that in Illinois, Rockford ranks 5th as having the lowest home price as a percent of income, and ranks 284 out of 300 for having the most unsold homes that are owned by the bank.

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Ray Hanania is an award-winning opinion columnist, author & former Chicago City Hall reporter (1977-1992). A veteran who served during the Vietnam War and the recipient of four SPJ Peter Lisagor Awards for column writing, Hanania writes weekly opinion columns on mainstream American & Chicagoland topics for the Southwest News-Herald, Des Plaines Valley News, the Regional News, The Reporter Newspapers, and Suburban Chicagoland.

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