Chicago Housing Unaffordable for 48% of their Residents
(Yes…I still love to read the newspaper, not news feeds.)
Over half of the adults living in Chicago are spending more on their homes or apartments. They take on second jobs, move to unsafe neighborhoods, cut back on quality of their food or kid’s education, according to a MacArthur Foundation study.
Eight years after the housing and financial crisis that burst open the Great Recession, 75% of people in the Chicago area are skeptical that the crisis is actually over, according to a survey done by Hart Research.
Here are more of my highlighted notes:
- In Chicago, 48% of people said they were devoting more than 30% of their income to rent or a mortgage. In the suburbs, 40% were stretching beyond the 30% limit.
- 11% of households in Chicago cut back on healthy food, 12% made cuts in health care to afford housing. An additional 11% moves to less safe areas.
- Affordable housing is most acute among those 18-34, African-Americans and households with incomes under $40,000. In addition, 49% of those in households with incomes over $75,000 said “it is challenging to find affordable housing in my area”.
- 73% of renters said they have had to make trade-offs in order to pay for their housing
- 47% of homeowners who report trade-offs of building up credit card debt, moving to less safe areas, eliminating savings for retirement or cutting back on health care.
- 87% of adults said having stable housing that is affordable is a very important part of having a secure middle-class lifestyle, while 67% said it is harder to afford stable housing than for previous generations.
- Nationally, 76% of people noted more difficulty holding onto a middle-class lifestyle.
As I continued to read this article, I cringed when MacArthur has been pushing for government policies that would increase affordable housing in Chicago…but all that has transpired are four years of studies. Yes, studies. EH?
Plus, there are “good steps” being made in these policies but none of them directly address stagnant incomes by saying, “At the end of the day, anxiety will only be relieved through economic development, better education and housing”.
Sure, Obama and financial gurus in the media will show data that we great economic improvement for the country. But that doesn’t mean this economic improvement is actually happening to our individual homes and our PERSONAL economy.
If you are sitting around waiting for a politician to turn around our economy where it can affect our economic opportunities, don’t hold your breath.
Long-Term Solution for Making Chicago Housing More Affordable vs. Unaffordable
We have got to continue to take personal strides in getting access to the education, application and follow through of one MAJOR thing – INCREASING YOUR INCOME.
Last time I checked most realtors, politicians, mortgage loan officers, accountants, lawyers or financial planners will tell you that or show you how.
You’ve got 3 major option to making more money and making ANY neighborhood you want to live in Chicago, affordable.
1. Go back to school – this is a 2-4 year plan, hopefully you can hold your financial breath this long, delay your gratification and avoid student loan or credit card debt. Moreso, hopefully someone gives you a job at the higher income that you were looking for.
2. Ask for a pay raise or get a higher paying job – easier said than done, eh? How long have you stuck around for this? And when it did come around, was it worth the wait?
3. Go in business for yourself, part-time – start something on the side on evening, weekends. Don’t have time? Well if you can’t make time, you can’t make money! Acquire business skills, invest time and money into things that make you MONEY.
Join us for a live event, on June 25th, 2016 when the #Vote1099 Entrepreneur Tour visits Oakbrook, IL frm 10am to Noon. Tickets are free, but will go quickly…register here to attend!