A More Realistic Look At What You Need To Earn To Buy A Home In Chicago

By Chuck Sudo in News on May 20, 2014 9:55PM

(Avenue H by Annie Maus)

Remember that Tribune article last month that claimed almost half of renters in Chicago made enough money to buy a home? That is, provided renters make an annual salary of nearly $33,000 which means one should enjoy having almost no disposable income after they factor in mortgage and property tax payments, home insurance, utilities, unexpected repairs and other miscellaneous expenses. We had a good laugh or three over that.

HSH.com, the nation’s leading publisher of mortgage and consumer loan information, looked at the salary requirements one must earn to buy a home in 27 major U.S. markets and found prospective homeowners in Chicago need to make a little bit more than $33,000.

A Chicagoan will need to earn $52,866.88 to cover the mortgage, principle, taxes, interest and insurance on a home—and that salary is after taxes. That’s not much more in salary but the good news here is the median price of a home in Chicago is currently $176,900, a 5.45 percent decline over the previous quarter. The necessary salary required to buy a home in Chicago decreased by nearly $1,700.

HSH.com notes that home prices in Chicago have been trending downward again. What can $176,900 buy you if you’re in the market for a home? It can buy you this home in Portage Park for $164,900. Or this condo in Logan Square. Or this home in Belmont Central. Or this bungalow in Chatham.

If you are looking to buy a home and want to determine what you want to, or can, spend, Dream Town Realty has a handy online mortgage calculator that allows you to break down what it would cost based on loan type, property value, type of mortgage and interest rate.