-- Connecting the dots between our economy, government and business --
The net monthly rent at top-tier apartment buildings in downtown Chicago jumped 6.25% year over year in the first quarter of 2025. High rents are expected to persist over the next few months as the market sees the number of new apartments delivered annually hit a nearly three-decade low.
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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As people have noted, Chicago and Illinois aren’t growing so it’s a good thing that developers aren’t building an over supply of housing. This helps drive up the pricing of existing housing. Now the city can raise property taxes (which takes equity away from the owner) at little risk of people “walking” away from their home. If they don’t want it somebody else will gladly take off their hands. This is no different than the SALT deductions. More money for Illinois residents equals more money available for the government. While I don’t like this outcome, it’s not up to me… Read more »
Seems like a scenario where trying-to-do-good organizations give lower priced rental units to people wandering in across the border, and the rent by default increases on everyone else as those units are taken. Just another financial gift to illegals from the taxpaying citizens of Illinois. Even if outside NGOs are funding it, it still ends up on the backs of taxpayers via healthcare and schools and increased rent to everyone else.
Yikes for Brando: “the smallest number of new apartments to be added to the downtown market in almost 30 years” Meanwhile, one of my 20 somethings was in Houston last weekend and he say there’s construction everywhere. They’re still building even as rents are dropping….no $800gs a unit on the taxpayers dime required!!