Quote:
Originally Posted by Bombardier
The value of Chicago condos has not seen the appreciation of property values like New York, Miami, San Francisco, and Los Angeles. My opinion is that Chicago is not as much an international destination so is not drawing as much interest from the international community to help drive sales and property values. Plus taxes and HOA’s are typically high relative to home values.
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Precisely. It’s all foreign buyers of these trophy buildings. Miami gets a lot of influx from Latin America, plus its status as a destination as a vacation spot. Los Angeles is a playground for the rich and sees a lot of Asian and ME money. If you’re a billionaire you own property in New York - it’s the capital of the world! If you’re a Russian billionaire that Nyc condo is essentially your foreign bank account.
Unfortunately while Chicago is fantastic, a world class dining scene is not enough to attract buyers from abroad when they have similarly good options in la Nyc and Miami. If someday Chicago does start to become an international destination the upper end of the condo market could easily explode - New York is probably about 5x more expensive at least.
The other factor is, unfortunately, if you’re at the top of your field and earning $$$ you end up moving to the coasts, it’s just the way it is in the us. While vibrant, Chicago doesn’t have any major primary industries like finance media or tech to keep people here. The closest we have is trading, but even that industry is slowly being absorbed by nyc despite the exchanges all located here. Ken griffin and citadel is a perfect example of this. That man somehow owns half the condos over $15mil in chicago, but is on his way out. His listing of his Chicago condos is single handedly destroying the high end Chicago condo market - there are just not many people who are willing to spend $10mil on a condo in Chicago.
Nyc has 100+ ken griffins. If Chicago had even 20 people of that wealth we’d see a lot more fancy super talls.