The biggest complaint in Chicago is the weather, we get it, our winters are pretty brutal. But the pros of living in the greatest city in the world outweigh the few months of snowfall. The biggest pro is the cost of living in the nations 3rd largest city... It's Affordable.
According to Crains Chicago Business, The Windy City is the only undervalued housing market in a survey of 20 financial centers by UBS Group AG, partly due to its widely publicized fiscal problems and rents rising faster than home prices.
New York moved from affordable to overpriced in this year’s rating even as inflation-adjusted real estate prices fell 2 percent in the past four quarters, according to the bank’s Global Real Estate Bubble Index.
“In Manhattan the market weakness was even more pronounced,”
“Real prices fell 5 percent compared to the previous year and in the luxury segment even more.”
Incomes simply aren’t climbing fast enough to keep up with the prices in many areas. For a skilled service worker in Hong Kong, it would take 22 years of their average annual income to buy a 60-square-meter (650-square-foot) apartment near the city center. A decade ago it was 12 years.
For other cities, buying real estate is more feasible. In Milan, it would take 5.7 years of annual income; it would be under five years for Chicago, Boston and Los Angeles.
"When you factor in population flows, when you factor in income growth, when you factor in home price growth, that’s why Chicago scores where it does.’’
Jonathan Woloshin, head of Americas real estate at UBS’s global wealth unit, said Thursday in a phone interview.