Chicago "affordable housing"

[Ryan Fox]

Yesterday, I learned that numerous former Chicago public school district schools on the South side are going to be auctioned off this fall.  The listing agent believes that the most likely bidders will be Chicago "affordable housing" developers.  Apparently, the most likely use of these properties would be new-build construction for affordable housing.  I'm not sure how such an "affordable housing" program works thru the city.  As someone who owns rental properties on the South side, and very near one the properties to be auctioned, I am concerned about a potential increase in supply of rental units which would drive up vacancy.  However, I've seen very little new construction at all on the South side.  Should I be concerned?  Is there a city program that encourages new-build affordable housing?

[Matthew Olszak]

Originally posted by @Ryan Fox:

@John Clark - I found one study that showed home values were 11% higher than the national average.  Can't find anything about rents.  I find it hard to believe.

I believe that. Statistics are crap - they can be manipulated to "prove" any position with half-truths. The average income in Chicago is almost 14% higher than the national average, so when you consider that it makes home values actually seem like a bargain. Also consider that the national average, or even averages in Illinois, is heavily skewed by all of the rural areas and how low their values/rents are. For instance, a HUGE portion of Illinois has 2BR rents for around $500-$550. You won't find that in an urban center like Chicago. I've seen "studies" that take the average rent in Chicago (which gets skewed by high income $10k/mo+ rents), and average that with say the average rent in say Urbana, and use that as the average to compare against without taking into account the # of rentals in each.

Chicago neighborhoods are going through natural changes that cycle over the years and change the demographic makeups. When I spoke in front of a senate committee last year, I stated, "Lets assume housing should be a right - but housing where you want it, how you want it, and for the amount you want to pay is not a right". Chicago doesn't have an affordable housing problem, for instance I have multiple 2BR apartments in great shape for $750/mo. But these affordable housing advocates simply don't want to live where my rentals are. They forget that 40 years ago, their demographic was the newcomers to the areas they are fighting to stay in, and their demographic displaced that area's residents. And so the cycle continues...