The pool of homebuyers that can afford Chicago housing prices is pretty large. According to Finder, Chicagoans make enough money to afford a home. Finder.com compiled data from a variety of sources. They used Census Bureau numbers, data from Zillow, the U.S. Department of Commerce and the Urban Institute.

  • In a Finder.com review of housing and income data, Chicagoland comes in as a place where people with an average income can find a home at a reasonable price.

  • Chicago came in no. 20 on a list of 78 cities.
  • They were looking for were a set of benchmarks to gauge how much homes cost in a variety of markets, and how easy it is to pay both mortgage and non-mortgage debt in each.

The pool of homebuyers that can afford Chicago housing prices is pretty large.

In a Finder.com review of housing and income data from a variety of sources, Chicagoland comes in as a place where people who make a little above an average income can find a home at a reasonable price.

Finder.com compiled data from a variety of sources. They used Census Bureau numbers, data from Zillow, the U.S. Department of Commerce and the Urban Institute.

What they were looking for were a set of benchmarks to gauge how much homes cost in a variety of markets, and how easy it is to pay both mortgage and non-mortgage debt.

Chicago came in at a comfortable 20 out of 78 cities that were rated. The average home value was pegged at $200,300. The analysis found that one could afford to buy a house in Chicagoland with a salary that’s within reach for the middle class– $57,038.

[Tweet “Chicago homeowners can manage their debt and afford an average home”]

Most of the top 10 entries on the list required low six-figure salaries to afford the average home. The top-ranked city, San Francisco, was found to require a salary of $180,600 to buy an average home.

That’s because an “average” home in the Bay Area costs $1,119,500. Four of the top 10 cities on the list are in California, and nine of the top 10 are located on bodies of water.

The numbers were also crunched to ascertain how much debt the average household had, and how much of their annual income needed to go to other things. Those other expenses included services and goods like healthcare. A non-mortgage debt factor also went into the rankings.

For Chicago, household had non-mortgage expenditures that averaged $31,693 each year, and had $16,483 in non-mortgage debt.

According to U.S. Census Bureau data, the average wage in 2013 was $52,250. That figure makes living in 36 of the 78 cities on the list within reach. Chicago’s required income was above that figure.

Forty-two cities are not affordable at the average income level.

The Finder.com assumed that living comfortably means :

  • the ability to purchase an average home, with a 20 percent deposit
  • the ability to cover average per-person expenditure
  • the ability to pay off non-mortgage related household debt

The housing analysis was based on:

  • median house prices in each area
  • average 30-year 20 percent home deposit interest rate in the state
  • mortgage payments, including interest
  • average non-mortgage debt across the city
  • average non-housing expenditure across the state.

Email Kimberley Sirk.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×