Chicago Housing and Transporation Costs are Rising

November 04, 2012

chicago real estate and housing costsAccording to a study by the Chicago based Center for Neighborhood Technology and the Washington D.C.-based Center for Housing Policy, housing and transportation costs increased 44 percent in the nation’s top metro areas between 2000 and 2010.

Out of the 25 metro areas that were part of the study, Chicago ranked 13th in affordability. Residents earning between $31,539 and $63,078 yearly spent an average of 58 percent of their income on housing and transportation costs. As far as housing costs are concerned, Chicago was ranked as having the eighth highest monthly housing cost with an average of $1,204. For a household with a moderate monthly income of about $3,726, this means that rent or mortgage payments can take up to 32 percent of monthly earnings.

The study also ranked top metro areas based on transportation costs. Chicago ranked fifth for transportation costs, which came in at an average of $959 a month or about 26 percent of an average household’s monthly income.

Chris Estes, President and CEO of the National Housing Conference, believes that in order to keep the Chicago real estate market affordable, new homes must be built in areas with low transportation costs and high rates of employment.

The housing market is experiencing a slow recovery and mortgage interest rates are at some of the lowest levels in almost 50 years. However, one obstacle standing in the way of making the housing market even stronger is that current renters are having difficulty saving enough money for a house.

Have the rise in housing and transportation costs affected you at all?

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