High property taxes in Illinois are hurting home values and pushing “Illinois toward a financial cliff” according to the The DuPage Policy Journal and Wirepoints.com writer Mark Glennon.
“I think we’re at the point where consumers are going to start concluding that buying real estate in Illinois, particularly homes, is not a safe bet because prices are, at best, flat if not going down.” – Mark Glennon, writer at wirepoints.com
DuPage County
In DuPage County, every single community has seen a drop in its home values, even cities with strong demand such as Naperville and Glen Ellyn.
They saw their home sale prices drop by an average of 19%. Homeowners in the hardest hit areas included Willowbrook, which saw a 48% decrease.
“A tipping point is at hand in Illinois,” wrote Glennon. “Potential homebuyers conclude they’ll never cash out whole because of increasing taxes and declining values.”
The causes
Homeowners are seeing excessive property taxes, increased costs, and stagnating wages.
Because of this, many are choosing to leave the Illinois, and in 2016 Illinois lost more residents than any other state. It has now had negative migration for three years straight and the numbers keep increasing.
“When you have a big state like Illinois, to lose population for three years in a row? That’s cause for alarm,” said William Frey of the Brookings Institute.
A study by Pew Charitable Trusts showed that since 2007, the average rate of personal income growth for Illinois residents is less than one percent. That makes it the worst income growth state in the Midwest and the 2nd lowest in the nation.
At the same time housing prices are decreasing and wages are stagnant, Illinois has the highest property taxes in the nation.
As crazy as it may sound, some have even said that Illinois is in danger of losing its position as the business capital of the Midwest.
It’s time for Illinois lawmakers to take action.
The Law Offices of Lora Fausett P.C. provide real estate law attorney services including short sales and deeds in lieu, loan modifications and workouts, and buying & selling assistance.
For Information Call 630-858-0090
Sources:
Dropping home values, high property taxes push Illinois toward financial cliff – DuPage Policy Journal
Home Values Plummet Across DuPage County – Downers Grove Patch
Property taxes rapidly eroding DuPage home values – DuPage Policy Journal
Illinois’ property taxes highest in nation, study finds – Chicago Tribune
Illinoisans experiencing second-worst income growth in the nation – Illinoisnews.org
High property taxes a multilayered problem in Illinois – DuPage Policy Journal
Illinois loses more residents in 2016 than any other state – Chicago Tribune
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