Investing in Illinois

[Lucien Perreault]

Not looking to get political but I’m curious how others think, from a real estate perspective, how the new SAFE-T Act that goes into effect on January 1st in Illinois will effect real estate across the state especially in Chicago. I own in Chicago and have my concerns but I want to see what others may think before I come to any conclusions.

[Garfield M.]

At some level, crime is already baked into the equation when people choose to invest in Chicago. I don't expect the SAFE-T Act to increase or decrease that in any drastic way. The nonviolent criminal stays in the county jails are already brief and have been for some time. 

The perception and reality of crime in Chicago have existed for a long time. The national media has been focused on Chicago as the epicenter of crime nationally and that is not likely to change anytime soon. I don't expect a surge in crime due to this act.

This is not to dismiss the issue of crime in Chicago as it is a huge concern of any resident here, including me. But I wouldn't be too concerned
(from a real estate perspective) with the opinions of people who admit to not even wanting to visit here. @Mike Gagnon above says that he won't visit Chicago, but the SAFE-T Act is a state law which means that southern Illinois where he lives will also have to deal with this law. Perhaps he's concerned with how crime is prosecuted jurisdictionally at a county level but that's a separate issue. He does not "understand the appeal of Chicago," but plenty of other investors do.

As far as your concern of "investors leaving in droves," I don't see any evidence this will happen. People have been proclaiming that Chicago and NYC "are over" for decades.  Some of the concerns in the media are focused on corporations like Citadel leaving the market. That's not good but that's all the media focuses on. However, there have been plenty of big-name investors relocating to Chicago.

https://www.prnewswire.com/new...

All in all, plenty of people will continue to invest in Chicago despite the crime issue. Instead of media narratives, I'd focus on measurable population shifts and trends.