Thursday, September 03, 2015

Property Tax Speed Bump

Not good news, but I've been expecting it - Chicago property taxes are probably going to shoot up.

'While opinions vary on the precise impact the proposed $450 million to $550 million tax hike will have on housing markets in the city and suburbs, most experts expect homeowners to grumble, then stomach the increase.'

Well, of course not everyone's going to move out. The problem, as usual, is what happens on the margin. You get less development here, and so on. A point which the story finally gets around to in the last paragraph:

'It might make a difference on the margins, to people already considering moving out of Chicago, or on the fence about moving in, Hewings said. "But for the vast majority of people, it's going to be an irritation," he said. "I really don't think it's going to have a dramatic impact."'

I'd like the city to thrive and endure.
I hope he's right, but I'm far from sure.


Charlie McDanger said...

Couple reactions. One is that I decided it's prudent to not be a stakeholder in a spend-happy blue state. If I ever live in CA, NY, or IL, I'd rent or find a nice overpass.

The other is that theoretically it should lower property values and increase rents. Perhaps you can Air-BnB to make up the loss...

JohnJEnright said...

Yes, I agree about the theoretical effects. We do have the room to run an Air BnB operation, so that's an option. Maybe I could put double-wide in the backyard and advertise it as "whole house"!