home prices vs. salaries in Chicago? (Lincoln, Roscoe: best neighborhoods, real estate, to rent)

[BRinSM]

is there a pretty good balance between the two in chicago? i've seen a few episodes of different shows on HGTV that seems to put nice 2br condos in the $300k range. i'm from LA and all that will get you here is a smallish 1br condo in a run down building.

i know jobs are tough to get everywhere, but do jobs pay the same in chicago as other big cities? for example, as a 28 year old with 5 years of specialty accounting experience, could i expect a salary in the $60k-$70k range like i'm making here in LA? inquiring minds want to know.

[Drover]

Generally speaking, salaries are lower in Chicago than in LA; however, housing prices in LA are generally higher not just in total dollar amount but as percentage of income than in Chicago -- call this percentage difference the "weather differential." A bit of cursory research suggests that in your profession and experience level, expect to earn on the low end of the $60-70K range you're currently getting in LA, and maybe even a touch lower.

The bottom line is you'll make less here but spend a smaller percentage of your income on housing. Whether this will be the case specifically for you will, of course, require more in-depth research.

[lenniel]

Chicago is made up of neighborhoods and depending on which neighborhood you're looking, that has a huge impact on home prices.
For example, in Lincoln Park, Old Town, Lakeview, Roscoe Village, Lincoln Sqaure a 2 br, 2 ba condo with run from $350 up to ?, depending.

That same condo, in places like Uptown, Logan Square, Ukranian Village, Humboldt Park (these neighborhoods are sometimes a mile or less from the ones mentioned above) might start at $175K.

Just a big difference depending on what hood you're looking.

[emathias]

Originally Posted by BRinSM

is there a pretty good balance between the two in chicago? i've seen a few episodes of different shows on HGTV that seems to put nice 2br condos in the $300k range. i'm from LA and all that will get you here is a smallish 1br condo in a run down building.

i know jobs are tough to get everywhere, but do jobs pay the same in chicago as other big cities? for example, as a 28 year old with 5 years of specialty accounting experience, could i expect a salary in the $60k-$70k range like i'm making here in LA? inquiring minds want to know.

Salary averages in Chicago are probably lower than LA, but for typical jobs I'm pretty sure the medians are similar. For example, I doubt that the salaries for mid-range accountants are all that dissimilar. Certainly, accountants in LA don't make enough more in LA to offset the housing costs. I helped a friend who moved to LA look for housing and I was pretty shocked at how uniformly high housing costs were there - even just to rent. They're not as crazy as Manhattan, but even in Manhattan many of the low-end, room-share situations were only marginally more than L.A., but could be found in much more desirable locations than in LA. Based on my experiences helping friends find housing in each place, I would much rather be poor in New York than poor in LA.

Anyway, back on topic, in Chicago the range of rents is much wider. Renting, you can pay $5,000 a month for a killer spread, or you can find $525 studios a block from the Lake, a block from the "L," with heat included. And typical one-bedrooms are around a grand.

Buying, you can find livable 2-bed condos in almost any neighborhood for $300k or less. In the best neighborhoods there will be fewer at that price, they might be smaller, and they might not have been updated recently, but they are available. In other neighborhoods, you can even find started single family homes for that price. There are so many pricing options in Chicago, it is pretty amazing. You can buy older but nice little single-family homes with access to good commute options to the Loop for $300,000 in places, or decent condos in similar areas for under $200,000, or you can live in the most popular areas with a $10+ million condo with spectacular lake and city views, or even $15 million mansions. Or you can buy a crappy fixer-upper house in a gangland warzone for under $10,000.

I own a quiet, 2-bedroom vintage condo a 15 minute walk from the center of the Loop, a 10 minute walk from the Apple store on Michigan Avenue, and a 25 minute walk or 12 minute bus ride from my office accross the street from the Sears Tower, with all sorts of restaurants and nightlife nearby, and I paid just over $300k for it five years ago. Prices on it haven't gone up much, but they haven't plummeted, either, because it's a steadily desirable area.

So that's Chicago real estate, in a nut shell - something for everyone. Salaries for low-skilled jobs here are about the same as the national average, salaries for knowledge workers (including accountants) tend to be higher than the national average, but not as high as LA, NYC and SF.

[Lookout Kid]

Originally Posted by lenniel

That same condo, in places like Uptown, Logan Square, Ukranian Village, Humboldt Park (these neighborhoods are sometimes a mile or less from the ones mentioned above) might start at $175K.

Nope, still not that cheap. Try $250,000.

[BRinSM]

thanks guys, those were very interesting posts. it does seem that we've been brainwashed by the sun out here in california. also, do you know what the unemployment rate is in the greater chicago area? here in LA, we're right around 12%, compared to the 10% nationwide average.

[Drover]

Chicago is right up there with LA/national average, somewhere around 11% last time I checked.

[nikitakolata]

Originally Posted by BRinSM

is there a pretty good balance between the two in chicago? i've seen a few episodes of different shows on HGTV that seems to put nice 2br condos in the $300k range. i'm from LA and all that will get you here is a smallish 1br condo in a run down building.

i know jobs are tough to get everywhere, but do jobs pay the same in chicago as other big cities? for example, as a 28 year old with 5 years of specialty accounting experience, could i expect a salary in the $60k-$70k range like i'm making here in LA? inquiring minds want to know.

Maybe I'm brainwashed, but I definitely think that if you went to a decent school and have had a good employement history showing increasing responsibility that you would have no trouble making $60k to $70k here. Everyone of my friends earns at least that much. If you have a CPA, even better. I'm in finance personally, I don't have a CPA or advanced degree, and I'm doing very well. I'm also 28 with 5 years of progressive experience (now I'm chief compliance officer, started out as a staff auditor out of school). There are a lot of financial firms in Chicago, so even in times of high unemployment, accountants are usually in demand.

As for housing, you can definitely get a 2 bedroom place in Chicago for under $300k. I look at real estate listings daily (got bored and ended up with a broker's license...) and while you could certainly spend much more than $300k for a 2 bed place, finding one that was in nice shape at that price point is certainly not unrealistic in my opinion.

[enator]

I second nikitakolata - 5 years of experience w/ good experience and decent credentials will get you at least 60-70k w/ a nice bonus.

[jlawrence01]

Originally Posted by BRinSM

is there a pretty good balance between the two in chicago? i've seen a few episodes of different shows on HGTV that seems to put nice 2br condos in the $300k range. i'm from LA and all that will get you here is a smallish 1br condo in a run down building.

i know jobs are tough to get everywhere, but do jobs pay the same in chicago as other big cities? for example, as a 28 year old with 5 years of specialty accounting experience, could i expect a salary in the $60k-$70k range like i'm making here in LA? inquiring minds want to know.

Most Big 4 hires from local universities are making $55-65 based on discussions that I have had with some of my prior interns.