Chicago is 10th most affordable big city in America

Citizens Budget Commission tracked housing and transportation costs for the nation's 20 largest metros

Jan.January 14, 2020 03:00 PM
Due to relatively high income levels and low transportation costs, New York City is the eight most affordable of 20 major cities (Credit: iStock)

Due to relatively high income levels and low transportation costs, New York City is the eight most affordable of 20 major cities (Credit: iStock)

UPDATE, Jan. 14, 2020, 2:33 pm: It may sound hard to believe, but New York is the eight most affordable city of the 20 biggest cities in the U.S.

That’s in part because low transport costs balance out high housing costs, according to a new study from the Citizens Budget Commission, a business-backed, fiscally conservative watchdog group, which used data from the 2016 Census to measure “location affordability” based on housing costs, transportation costs and income.

Click to enlarge (Credit: Citizens Budget Commission)

Click to enlarge (Credit: Citizens Budget Commission)

The study found that housing costs in New York were the fifth most expensive, with the “median household” spending 30.8 percent of its income on housing. (A“median household” is defined by HUD as a couple making the area’s median family household income who have two children.) Transport costs, on the other hand, were the lowest of the group — the median household spend was just $832 a month — while household income ranked eighth highest.

The study found that median households in 15 of the 20 cities spent more than 45 percent of their household income on housing and transportation costs. By this measurement, Chicago was the 10th most affordable, Los Angeles 12th, and Miami 18th.

Only five cities — Washington DC, San Jose, San Francisco, Boston, and Minneapolis-St. Paul — fell below the 45 percent level and could be considered “affordable,” by the study’s measurement, because they had relatively high household incomes.

So, in other words: despite placing eighth, New York isn’t really all that affordable. Despite New York’s relatively competitive position in the list, the study warned that it might not stay that way.

“High housing demand in relation to slow housing production and the Metropolitan Transit Authority’s fiscal and operational woes may increase costs and negatively affect New York City’s location affordability competitiveness,” the report said. [Citizens Budget Committee] – Sylvia Varnham O’Regan

Related Articles

Airbnb CEO Brian Chesky with Pride Fest and Lollapalooza (Credit: Getty Images, North Halstead)

Chicago Airbnb hosts heads-up: Pride Fest, Lollapalooza among top-earning weekends

Renderings of The 12 development at 2500 W. Lexington St,

With over 50 homes in the pipeline, developer rebrands area “the New West”

Frank Lloyd Wright and (from top) 301 S. Kenilworth Ave., Elmhurst; 239 Franklin Street, Glencoe; and 350 Fairbank Road, Riverside (Credit: Getty Images, iStock)

In Chicago’s residential market, the price is not Wright

Alderman Harry Osterman (48th) and a coach house in Dunning (Credit: Zillow)

Chicago may allow more granny flats amid affordability crisis

Developer Sam Goldman and an original rendering of the apartment building at 7000 N. Glenwood Ave. 

To avoid rezoning battle, developer cuts Heartland Cafe redevelopment plans in half

Dr. Kam Patel and 400 W. Huron tower

Can a $10M condo — not in No. 9 Walton — find a buyer?

The Atworth at Mellody Farm and Passco CEO William O. Passo

In a tight market, California investor pays $90M for suburban rental complex

2308 W. Giddings Street and "Windy City Rehab" stars Alison Victoria and Donovan Eckhardt (Credit: HGTV)

Buyers to “Windy City Rehab”: Take back this broken $1.36M house