Q4 of 2019 marks 10 years since the low-point of the national housing crisis. Nearly one in four mortgaged homes had negative equity, meaning the market value of the property is worth less than the value owed in mortgage.
Michael, yes, I think everybody agrees that higher property taxes drive down values, and that’s been very apparent in Illinois. Think about how it works to qualify for a mortgage. They add up your mortgage payment, insurance and property taxes and the total has to be below some percentage of income — 30% – 33%. Higher taxes mean fewer qualified buyers.
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
Would you say that because of property taxes, the value has actually decreased?
Michael, yes, I think everybody agrees that higher property taxes drive down values, and that’s been very apparent in Illinois. Think about how it works to qualify for a mortgage. They add up your mortgage payment, insurance and property taxes and the total has to be below some percentage of income — 30% – 33%. Higher taxes mean fewer qualified buyers.