-- Connecting the dots between our economy, government and business --
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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Downtown residential high-rise rental prices are still increasing, despite weakening economy, because market-demand remains strong. Chicago’s low-rise neighborhood rental housing is often of much lower quality standard, not comparable, sometimes frankly dismal. That formerly-standard “starving artist” post-grad lifestyle isn’t attractive to white-collar young professionals, a large chunk of this downtown residential rental market. Many adult-children from upper-middle and high-income households don’t value or seek financial independence. Their parents still hover, and often encourage high-rise doorman-secured amenity-laden housing for their adult-children, and quite willing to shell-out needed rent-subsidies.
These young folks ought to think long and hard about whether to buy anything downtown or in many of the neighborhoods right now. Yo will likely be looking at price stagnation, or even declines. Most folks are too young to remember the Harold Washington years and thereabouts. The Chicago Public Schools were a disaster, and many other problems we all know about. That resulted in basically zero increase in property values from the early 1980’s till 1988. Rents were also fairly flat, with some exceptions in some neighborhoods. And back then we didn’t have the crime problems, vacant office space… Read more »
Look on the bright side apartment renters. In the near future nobodys gonna want to get stuck holding Chicago real-estate. The collary will be that no lender will want it on their books either so they’ll stop writing mortgages in Chicago. The mostly upcomming DNC may be the straw the pulls the curtain back. Yes, you’ll be forced to become a modern day Oakie and drive to a red state whose large cities are more prudently managed. In the long you’ll be better off. Just like the Oakies of the 1930’s. Just remember to never vote for a Democrat in… Read more »
Granted, I live in the ‘burbs now, but who is paying $3,000+ a month to live in River North these days? It shocks me that this is still a thing. Sure, maybe 4-5 years ago pre-covid, with an active nightlife scene and full office buildings. But $3,000 a month to live in an area where half the storefronts are vacant?
Just think what rents would be if you had police protection in the area.
High rents (stemming from higher taxes and higher operating expenses) are frustrating. I wouldn’t argue with that, but home ownership is hardly bliss either. Those who feel stuck in “apartment jail” should consider a few things. Rent is not throwing your money away. If you find a pleasant apartment in a location you like (so that you can walk to work/stores), you will have more time to focus on your career or hobbies. If the apartment complex has a pool or tennis courts, you don’t need a gym membership. If you relocate for a better job, you don’t have to… Read more »
When you rent, you are paying for the ability to move. It’s baked into your rent. Granted, moving is a PITA, but moving is sometimes needed. Home buying is fraught with problems like high taxes, housing market crashes, declining neighborhoods, a hundred other problems. In a lot of cases, renting is just a better choice.