By: Ted Dabrowski and John Klingner
Illinois’ political elite have signaled time and again they want to tax Illinoisans’ property more than they already do. Some Chicago Fed economists want a statewide property tax to pay for pensions while Chicago Mayor Lori Lightfoot wants a real estate transfer tax for the same thing.
They obviously don’t care about how much damage the state’s failed policies have already inflicted on Illinoisans’ property values.
A Wirepoints review of median home values across the nation found that Illinois ranked 45th in median home value growth between 2005 and 2017, according to the U.S. Census. The earliest available census data is from 2005.
Illinois home values only increased a paltry 6 percent over the entire period, far short of inflation, which was up 26 percent.
In contrast, home values in the top 10 states increased by 54 to 120 percent.
Many people rely on their homes to provide for their financial and retirement security. Often times, that’s where their entire net worth is. The more values grow, the better off residents are.
In Illinois, politicians have destroyed residents’ ability to create wealth through homeownership.
By comparison, Illinoisans’ neighbors all saw their nest eggs grow.
Iowa and Kentucky median home values grew 40 and 36 percent, respectively. Missouri and Indiana’s grew between 25 and 30 percent. And even slower-growing Wisconsin still saw its median home values increase 17 percent – triple that of Illinois’.
In fact, Illinoisans would be tens-of thousands of dollars richer today if their home values had just managed to grow at the national average.
Wirepoints ran property numbers with Zillow’s support and found that Illinoisans have lost out on $270 billion in total additional home value since 2008. That’s more than $66,000 in additional wealth per household that Illinoisans have missed out on.
The Chicago price
Chicagoans in particular have been hit hard since 2000 when it comes to their home values. Windy City residents would have been far better off today if they’d owned property in any of the other nine cities that make up the Case-Shiller 10-City Composite Home Price Index.
Home prices in the Windy City have grown just 44 percent since 2000. By comparison, inflation was up 46 percent over the same time period.
Meanwhile, home prices in Los Angeles grew four times that of Chicago’s, or 181 percent. Prices in Miami, up 143 percent, and Washington D.C., up 130 percent, have grown three times more than those in Chicago.
Even Las Vegas – which suffered a big collapse in values during the Great Recession – has seen its home prices rebound and grow double that of Chicago’s.
There’s no need to debate precisely why Illinois’ growth in home values is so much worse than in other states. There are plenty of reasons. Anemic income growth. Too much state and local government debt. Rampant political corruption. Disappearing working- and middle-income jobs. And the nation’s highest property taxes and the stream of out-migration have something to do with it, for sure.
Another way to say all that is Illinois politicians have run the state into the ground with decades of failed public policies.
And look for their next “big idea,” a progressive income tax scheme, to make things far worse.
Read more about how slow-growing property values and rising taxes drive Illinoisans out of state:
- Subpar Home Appreciation Cost Illinoisans a Quarter-Trillion Dollars Over Ten Years
- Illinoisans still waiting for home values to return to pre-recession levels
- Leaving Illinois: One woman’s search for better opportunities in Atlanta
- Illinois’ lethal combination: Rising property taxes and stagnant incomes
- Chicago’s south suburbs struggle under Springfield’s continuing neglect
- Leaving Illinois: One family’s math