By Ted Dabrowski and John Klingner
The most recent Case-Shiller Index of home prices shows Chicago’s metro area continued its pre-pandemic struggle to show real growth. Chicago home value growth for April 2020, year-over-year, was just 1.4 percent, the lowest of the metropolitan areas included in the Case-Shiller 20-city index. The Case-Shiller index measures the change in value of single-family homes and is calculated and kept monthly by S&P.
Phoenix, Seattle and Minneapolis had the highest growth, with prices in Phoenix growing nearly 9 percent over the year.
While the short-term data for Chicago is already bleak, the longer-term picture captures just how badly the Windy City area’s home market has done since the new Millennium. In all, Chicago prices are up just 46 percent since 2000, shy of the 51 percent inflation over the same period. Only Cleveland and Detroit have seen their homes appreciate more slowly than Chicago.
In contrast, cities like Miami, Seattle and San Diego have seen home prices grow more than 150 percent. Los Angeles homes have appreciated the most, growing by nearly 200 percent.
Stagnant and falling home values will only make things worse.