Relocating to Chicago More Affordable Than Other Major Cities

Chicago cost of livingFor potential Chicago real estate buyers, there’s good news in today’s market: two key measures continue suggest that now is an excellent time to make a real estate purchase.

According to an article in last week’s Wall Street Journal, two important rates make it an ideal time to buy. First, house prices compared to yearly rents has been nearly restored to its pre-bubble average, making it a much smarter investment to purchase property versus renting for a place to live. Second, the lower-than-ever mortgage rates available today make housing more affordable than it has been in decades.

One caveat to this opportunity is that the time is right for long-term buyers—those looking to live in a home long-term or use as an investment, but not for a quick flip. Chicago is in an especially prime position for real estate purchases, compared to other metropolitan areas, where prices/rent ratios are considerably higher.

Price/Rent Ratio City
10.4 Chicago
13.3 Washington D.C.
15.1 Los Angeles
17.6 New York

Relocating to Chicago

Those relocating from other metropolitan areas may find Chicago to be incredibly affordable and a smart place to buy, compared to the cost of purchasing real estate in other major cities. Chicago’s price/rent ratio even falls below the national average of 11.3.

But the difference isn’t in real estate alone—the cost of living in Chicago comes up considerably less as well. Sperling’s Cost of Living Index shows what a salary in Chicago would need to be in other cities in order to have a comparable lifestyle:

City Comparable Salary
Chicago $200,000
San Francisco $370,000
New York City $300,270
Boston $290,909
Washington, D.C. $239,784
Seattle $256,706
Los Angeles $259,784

That’s simply considering how far a dollar would go in each of those cities, and doesn’t include the affordability of Chicago real estate. Not to mention, Chicago is simply a wonderful place to live. From a fabulous entertainment scene to five-star dining, fascinating history and endless things to do, there is no shortage of reasons to love this city (check out my top reasons to move to Chicago for the full list).

If you’re interested in relocating to Chicago or making a purchase in this market, give me a call at 312-264-5853 or email me at ssalnick@dreamtown.com. I’d love to show you what the city has to offer and introduce you to the best in Chicago real estate.

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