Chicagoland Area Housing Price Index, Property Taxes, and Income
Is the Chicagoland Area Keeping Up with the US Average?
Well, from a visual perspective of the Freddie Mac Housing Price Index, the answer is…NO. From 2003 until today, the Chicagoland area has not kept on pace with the National Housing Price Index.
Furthermore, the percentage change on an annual basis has not kept up with the national average from 2014 to 2018.
Are Property Taxes Eating Into the Home Value in the Chicagoland Area?
Well, this line graph is awfully telling…
According to the Illinois Policy Institute, from 1963 to 2013, while population in Illinois has grown 24%…property taxes have been extended 1683%! Since 1990, property tax extensions have grown 181%!
Since 2001 – property tax extensions have surpassed Illinois state personal income and surpassed the Illinois GDP as of 2003. Given the economic decline in 2008, there was no slowdown in property tax extensions although the property tax extension curve leveled out a little after 2008.
Although dated from 2013, we can see that back in the early 90s and around 2010, property taxes hit their highest points as a percentage of annual income. This appears to fall in line with our Freddie Mac Housing Price Index graph to formulate some reasoning that we can assume as why Chicagoland pricing did not keep pace with the national average on an index level.