Quote:
Originally Posted by Steely Dan
Because you're a 5-percenter (or close enough to it) and are only able to understand the world through the dollars and cents lens of investment potential.
For regular people in the middle and working classes, home affordability is about the lack of barriers to entry.
It's not so much about future investment potential, it's about being able to afford getting away from the uncertainties of the rental world and putting a permanent roof over your family's heads.
It is easier (lower barrier) for working and middle class people to ENTER the real estat market in Chicago than it is in the big coastal cities. That's why many people refer to it as "affordable" on that relative basis.
But no, that $150K bungalow in Chatham is not going to be worth $500K in 15 years. That's the trade-off. You won't get rich off of owning your own home in Chicago, but at least you get to own one in the first place, if you want to.
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To keep those barriers to entry "low" you have to flood the market with inventory. Instead of shafting the people trying to buy in, you shaft the people who bought in by diluting the value of their property. That's why you have houses all across the midwest that are worth less on paper today than they were 15 years ago.