Tag Archives: chicago

Looting, Riots, & Mayoral Ineptitude Prompt Mass Exodus Of Chicago Residents

While mayor Lori Lightfoot continues to try and assure the public that she has everything under control, the exodus from Chicago as a result of the looting and riots are continuing. Citizens of Chicago are literally starting to pour out of the city, citing safety and the Mayor’s ineptitude as their key reasons for leaving.

Hilariously, in liberal politicians’ attempt to show the world they don’t need Federal assistance and that they don’t need to rely on President Trump’s help, they are inadvertently likely creating more Trump voters, as residents who seek law and order may find no other choice than to vote Republican come November. 

And even though residents who support BLM understand the looting and riots in some cases, they are not waiting around for it to get better on its own, nor are they waiting around for it to make its way to their house, their families or their neighborhoods. 

One 30 year old nurse that lives in River North told the Chicago Tribune: “Not to make it all about us; the whole world is suffering. This is a minute factor in all of that, and we totally realize that. We are very lucky to have what we do have. But I do think that I’ve never had to think about my own safety in this way before.”

The city’s soaring crime has been national news this year and many residents are claiming they “no longer feel safe” in the city’s epicenter, according to the Tribune report. Aldermen say their constituents are leaving the city and real estate agents say they are seeing the same. 

The “chaotic bouts of destruction in recent months” are the catalyst, the report says.

Residents of the Near North Side told a Tribune columnist that they would be moving “as soon as we can get out” and others “expressed fear” of returning downtown. The Near North Side is 70% white and 80% of residents have a college degree. The median household income is $99,732, which is about twice the city’s average. 

Real estate broker Rafael Murillo says people are moving to the suburbs quicker than planned: “And then you have the pandemic, so people are spending more and more time in their homes. And in the high-rise, it starts to feel more like a cubicle after awhile.”

Chicago’s Pension Nightmare Is Wreaking Havoc On The City’s Housing Market

As a result of high taxes and government debt, combined with a nightmarish looming pension liability, Chicago’s housing market continues to collapse, according to a new write-up in the City Journal.

Average home prices in Chicago have still not recovered from the downturn that started in 2009, despite the fact that property taxes continue to climb. This is part of the reason Illinois ranks highest among states losing people to other areas of the country. Chicago homeowners are also taking big losses when they sell their homes. 

Ball State economist Michael Hicks said last month: 

“Taxes are high, the services [that taxes] pay for are terrible, and the debt load is so high, so palpably unsustainable that people have no belief that the resources can be found to turn it all around.”


“You won’t recruit a business, you won’t recruit a family to live here,” Chicago mayor Rahm Emanuel said in 2012, warning about the city’s pension problems. And that looks to be the case: Realtor.com predicted that Chicago would have the weakest housing activity this year among the nation’s top 100 markets.

But unions in Chicago continue to push for higher pension contributions, even while efforts to curb the problem have failed. This has resulted on the money having to come from somewhere – and that somewhere is taxes. According to the report, Chicago’s annual pension payments have doubled over the last few years, to nearly $1.2 billion, and are set to rise to $2 billion in 3 years.

In 2015, the city approved $543 million in property tax increases as a result. Chicago schools also raised local homeowner taxes by $224 million in 2017. “Every penny” of these taxes goes into the pension system and Chicago now bears the title of “highest residential property-tax rates of any American city.”


And not surprisingly, residents are leaving Illinois and Chicago as a result. From 2011 to 2017, the state ranked second among states in outmigration, losing 640,000 more residents than it gained:

A recent Bloomberg study of metropolitan-area migration data found that the city had a net migration loss of 105,000 in 2014; it got worse in 2017, with the net loss totaling 155,000.

And while some governors, like New York’s Andrew Cuomo, acknowledge that taxes are driving people out, Illinois’ new governor Jay Pritzker has instead introduced legislation for more taxes on the wealthy, offering them a great excuse to leave Chicago, and the state. The city is losing its luster with millennials, too. Chicago now ranks as third-least attractive among the 53 largest metro areas in the U.S., losing an average of 19,000 young adults per year. Illinois ranks behind all but two states in trying to attract young adults. 

The city’s economy is also sputtering, averaging less than 1% growth in private sector jobs in each of the last 2 years. 


And when residents flee the city, they put a home up for sale in the market without buying one in the same market. This has caused the price of housing to plunge – according to the report, the “average price of a single-family home in Chicago is lower than it was before prices began plunging back in 2009.”

The national average is a rise of 30% in home prices since the crash. Housing speculators in the city have been decimated:

Crain’s Chicago Business told the story of a Chicago-area executive who lost more than half a million on the sale of his home when he retired to move elsewhere. If he had invested the money in the stock market instead, he said, “I’d probably have $6 million now.”

This has led to a slew of underwater mortgages – the most in any major US market. It’s estimated that 135,000 mortgages may risk default during the next economic downturn.


In early April, we noted that Chicago pension funds looked like a “collapsing ponzi scheme”. Back in December 2018, we noted that each Chicagoan owed $140,000 to bail out the city’s pensions. 

And we’d love to say, “Let this be a lesson to the rest of the nation” who believes that government financial problems and pension liabilities are simply “no big deal”, but we’re certain they’re not listening anyway.

Source: ZeroHedge


Over 150 People Move Out Of Chicago Every Day

With its nation-leading murder rate, lake-effect weather, endemic corruption and financial mismanagement, who really wants to live in Chicago? Well, the data is in, and as Mayor Rahm Emmanuel prepares to hand power to a new administration next year, his legacy – already marred by the above-mentioned scourges – has accrued another ignominious distinction. According to Census data analyzed by Bloomberg, Chicago experienced the highest daily net migration in the US, losing 156 residents a day (strictly due to migration, not murder) a day in 2017.

After Chicago, Los Angeles came second with 128, followed by New York with 132.

On the other side of that coin were cities across the US sun belt, like Dallas (No. 1, with 246 net incoming), followed by Phoenix (with 174) and Atlanta (No. 3 with 147).


In terms of total net migration for the year, the tallies differed only slightly. While the sun belt was the biggest beneficiary of Americans’ growing preference for sunnier weather, lower rents and plentiful job opportunities…

Dallas was the greatest beneficiary of this domestic migration, adding nearly 59,000 domestic movers in 2017, followed by Phoenix (51,000) and Tampa (41,000), which serve as anchors for the western and southern regions that got the bulk of the gains.

…some of America’s largest cities saw net outflows as rising rents, crumbling (or inadequate) public infrastructure. The city with the biggest outflow was NYC, followed by Los Angeles and – in third place – beautiful Bridgeport, Conn.

On the flip side, more than 208,000 residents left the New York City metropolitan area last year. This was nearly twice as many as the second biggest loser, Los Angeles, which had a decline of nearly 110,000. Chicago fell by 85,000. Honolulu, San Jose, New York and Bridgeport, CT lost the highest shares of their residents to other parts of the country.

In Chicago, New York and Los Angeles, the three areas with a triple-digit daily exodus, people are fleeing at a greater rate than just a few years earlier. Soaring home prices and high local taxes are pushing local residents out and scaring off potential movers from other parts of the country.

But maybe if Emmanuel’s successor can successfully implement the outgoing mayor’s plans for a city wide UBI (which we imagine would go a long way toward offsetting its hated ‘amusement tax’ and other levies needed to pay off the city’s brutal debt burden), maybe he can bribe residents into staying.

Source: ZeroHedge

Pabst Mansion in Illinois Gets Another Price Cut

Sold in 1999 for $6.95 million the 14,000-square-foot home is now on the market for $3.9 million

It isn’t often that a historic estate with 21st-century features, finishes and amenities is available at a 20th century price, and yet that’s exactly what is on offer at the Pabst Mansion on Sheridan Road in Glencoe, Illinois.


Sited on 2.2 acres, the 14,000-square-foot house was built in 1936 by architect Willian Pereira.

On the market for two years, the price was just reduced to $3.9 million, nearly $3 million less than what it sold for in 1999 at $6.95 million, according to the Cook County Recorder of Deeds. The current owner, who bought the home in 2014, originally listed it for $6.3 million in June 2015. In May 2016 the asking price was lowered to $4.95 million and since then, has reduced the price several times before this latest drop.

Crain’s Chicago Business first reported the price reduction, noting how the house’s sale price has decreased from the 1999 price tag, in each of the mansion’s subsequent sales. It sold for $5.2 million in 2009 and $4.8 million in 2014, when it was bought by the current owner, an insurance executive, according to the public records.

Sited on 2.2 acres, the 14,000-square-foot house was built in 1936 by architect Willian Pereira, who became famous in later years for his work in California, including the Los Angeles International Airport’s space-age control tower and the Transamerica pyramid in San Francisco. The house is known as the Pabst Mansion because of its first owner, Harris Perlstein, who ran Milwaukee’s Pabst Brewing Co. after the merger with his company Premier Malt Products.

On the inside, the house’s details and amenities are extensive. There is a large oval dining room, a paneled library, a bar and entertainment room, a game room, an exercise room, and a party-sized screening room, according to the listing agent. Situated at the end of a long gated driveway, the grounds include a pool with water slide, a half basketball court and a hedge shaped like a maze.

“The new price is an extraordinary value,” said Coldwell Banker listing agent Wendy Friedlich.

| Mansion Global

Chicago Property Owners Get First Taste Of Record 12.8% Tax Hike

The second installment of Cook County property tax bills were due August 1. That includes the city of Chicago, where property owners got their first taste of a record increase the city council passed last year. Some property owners are facing double-digit increases.

After paying the highest property taxes ever levied in the city, many Chicago homeowners had the same complaint.

“For the amount of taxes that my neighbors and myself are paying, we’re not getting the proper services like other neighborhoods get,” West Side resident Steve Lucas said.

That’s because the taxes are not paying for added services. The Chicago portion of the property tax bill – which was increased by nearly 70 percent -will pay for police and firefighter pensions and school construction. Add that to what’s become an annual hike in the CPS operating budget levy.

“Increased every year. (Every year they’re increasing?) Yes, every year,” North Side resident David Chang said.

“(00:15:35)We are much better off today than we were five years ago,” said Alexandra Holt, Chicago budget director.

At Chicago’s City Club, Holt said Chicago’s looming $137 million deficit looks a lot better than $654 million projected at this time five years ago. Mayor Rahm Emanuel said the city had no choice but to raise money for pensions to spare the operating budget.

“There is a real financial cost and economic cost to the city if you don’t address the problem,” Emanuel said.

Former Gov. Pat Quinn has a petition drive underway to appoint a consumer advocate to help homeowners appeal their tax charges.

“The best way to do it is at the ballot box by gathering signatures on petitions like this one,” said former Illinois Gov. Pat Quinn.

The city has scheduled three more tax increases for police and fire pensions and still has not addressed a deficit in the retirement fund for city workers, not to mention a newly-authorized property tax hike to pay for teacher pensions.

“The city says they might have to go up again. Yes, and I might not be able to stay where I’m staying. I’ve been there 40 years and I don’t know if I can stay any longer,” South Chicago resident Doris Hood said.

The city council has approved a plan to rebate a few hundred dollars to the lowest-income homeowners if they apply. It should also be noted that the Chicago School Board is expected to approve a $250 million property tax increase for teacher pensions at its meeting later this month.

by Charles Thomas | ABC7Chicago

Chicago Property Taxes To Increase By 12.8 Percent

 The Cook County Clerk’s office released the 2015 property tax rates on Monday for the entire county. While the northern and southern suburbs of Cook County can expect a slight tax bill increase of 1.7 percent and 2.1 percent, respectively, Chicago’s property tax bills will rise by 12.8 percent.

According to the Clerk’s office, citizens of Chicago who paid an average tax bill of $3,220.32 in 2014, will pay an average of $3,633.19 on their 2015 bills, an increase of $412.87.

Cook County property taxes are paid in arrears, meaning the bill for 2015 is paid during 2016.

The Clerk’s office says that this substantial increase is due the city being reassessed in 2015, which resulted in a 9.3 percent increase in the equalized assessed value citywide. The equalized assessed value, or EAV, is a multiplier used in calculating property taxes to bring the total assessed value of all properties in Cook County to a level that is equal to 33.3 percent of the total market value of all the real estate in the county.

The Clerk’s office is quick to note that a majority of Chicago’s tax increase is due to the city increasing the pension portion of its levy by $318 million. As a result of the reassessment, the Clerk’s office says the city tax rate actually increased less than one percent compared to 2014.

Cook County is divided into three areas, Chicago, northern suburbs, and southern suburbs, which are reassessed every three years. The southern suburbs were reassessed in 2014. Chicago was reassessed in 2015. The northern suburbs will be reassessed in 2016.

Tax bills for Cook County property owners are due August 1, 2016.