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Midwest prices are nowhere near California prices. Not even moderately close. The only place that might be remotely true is Chicago.
by alphabettsy 2y ago
Midwest prices are nowhere near California prices. Not even moderately close. The only place that might be remotely true is Chicago.
- bombcar 2y agoI have some properties I track, the CA one used to be 5x the Midwest one, now it’s only about 2-2.5x.
- tptacek 2y agoChicagoland prices are much lower than California prices, even in high-demand areas.
- nradov 2y agoChicagoland prices factor in high levels of state and city debt. Someone moving to Chicago from out of state is essentially taking on an extra $85K of debt. While residents aren't directly personally liable for those debts, they should expect higher taxes and lower service levels in the future. A municipal bankruptcy is possible. https://www.wsj.com/articles/chicago-will-need-a-miracle-to-escape-its-debt-burden-dd39353b?st=0gju7lk3nxiwju8&reflink=desktopwebshare_permalink https://www.wsj.com/articles/chicago-will-need-a-miracle-to-... California and it's large cities have their own fiscal problems but generally not as bad.
- tptacek 2y agoI don't know. I'm pretty well acquainted with the Chicagoland fiscal situation, which is real and ugly, and this "add $85k" thing seems like a just-so story. Can you show your work getting to that figure?
- bombcar 2y agoIt's probably some math involving "unfunded liabilities" that the government has (usually oversized pensions or something). This can cause a cascade where the governmental entity that has the liabilities keeps raising taxes on its constituents so they keep moving outward to the suburbs or away. Detroit is a famous example of this, but it's happened to other areas (cities have gone bankrupt before).