Meeting 3 - Homeownership and Investment in Chicago Neighborhoods

Section 1 - Legacy of the Foreclosure Crisis

This section examines concentrated patterns of foreclosure activity in Chicago neighborhoods highlighting how the legacy of the foreclosure crisis still presents a challenge to investment and recovery in some areas. These data were commissioned by the City of Chicago to guide conversations around developing Chicago’s 2019-2023 Five Year Housing Plan.

Map 1.1. Foreclosure Concentration in the City of Chicago, 2005 to 2013

Source: IHS Data Clearinghouse

Chart 1.1. Indexed (2000) Foreclosure Filing Activity in the City of Chicago by Neighborhood Market Type, 1998 to 2017

Source: IHS Data Clearinghouse

Chart 1.2. Share of Residential Parcels Impacted by Foreclosure at Least Once in the City of Chicago by Neighborhood Market Type, 2005 through 2013

Source: IHS Data Clearinghouse

Chart 1.3 Annual Residential Foreclosure Filings per 100 Residential Parcels in the City of Chicago by Neighborhood Market Type, 2010 to 2017

Source: IHS Data Clearinghouse

Section 2 - Current Housing Market and Investment Conditions

This section explores the variation in a set of indicators examining levels of investment in the Chicago housing market. It drills down in more geographic detail to examine current housing market conditions in Chicago neighborhoods and how conditions have changed. The following analysis uses a lens of neighborhood market types based on the relative cost of housing (high cost, moderate cost, lower cost) to highlight the variation in conditions between neighborhoods. More on this market typology can be found in the technical paper for IHS's recent project Mapping Displacement Pressure in Chicago.

Map 2.1. Submarket Types (high-cost, moderate-cost, lower-cost, insufficient data)

Chart 2.1. Indexed (2000 Q1) Quarterly Single Family House Price Changes in the City of Chicago by Neighborhood Market Type, 1997 to 2017

Source: IHS Cook County House Price Index

Table 2.1. Key Single Family House Price Indicators in the City of Chicago by Neighborhood Market Type, 1997 to 2017

	Lower Cost	Moderate Cost	High Cost
Price Change Since 2000	8.0%	63.1%	88.5%
Price Change from Peak to Current	-52.6%	-23.5%	-2.4%
Price Change from Bottom to Current	40.9%	50.1%	37.7%
Year over Year Price Change	10.9%	4.1%	0.9%

Source: IHS Cook County House Price Index

Chart 2.2. Median Sales Price in 2000 and Estimated Median 2017 Sales Price Based on IHS House Price Index Values for Single Family Homes in the City of Chicago, 2000 and Estimated 2017

Source: IHS Data Clearinghouse and IHS Cook County House Price Index

Chart 2.3. Share of 1-4 Unit Building Sales Below $50,000 in the City of Chicago by Neighborhood Market Type, 2010 and 2017

Source: IHS Data Clearinghouse

Chart 2.4. Share of Single Family Sales between Individuals in the City of Chicago by Neighborhood Market Type, 2010 and 2017

Source: IHS Data Clearinghouse

Section 3 - Opportunities and Challenges for Investment

This section presents data that shows opportunities and potential headwinds to increasing homeownership and housing investment in Chicago neighborhoods. It features an indicator that adapts the Urban Institute’s Homeownership Affordability for Renters Index (HARI) to Chicago and its submarkets.

Chart 3.1. Indexed (2000) Mortgage Lending Activity in the City of Chicago by Neighborhood Market Type, 1998 to 2017

Source: IHS Data Clearinghouse

Chart 3.2. Distribution of Home Purchase Loans by Borrower Race and Ethnicity, 2017

Source: Home Mortgage Disclosure Act (HMDA) Data, 2017

Chart 3.3. Indexed (2012) Change in Home Purchase Lending by Borrower Race/Ethnicity in the City of Chicago, 2012 and 2017

Source: Home Mortgage Disclosure Act (HMDA) Data, 2016 & 2017

Chart 3.4. Income Distributions of Recent Home Purchase Mortgage Borrowers Compared to Renter Incomes in the City of Chicago, 2016 and 2017

Source: American Community Survey 5-Year Estimates 2016 and Home Mortgage Disclosure Act (HMDA) Data, 2016 & 2017

Chart 3.5. Estimated Number of Renters That Could Afford a Mortgage by Income in the City of Chicago, 2016

Source: American Community Survey 5-Year Estimates 2016 and Home Mortgage Disclosure Act (HMDA) Data, 2016 & 2017

Chart 3.6. Estimated Share of Renters That Could or Could Not Afford a Mortgage by Income in the City of Chicago, 2016

Source: American Community Survey 5-Year Estimates 2016 and Home Mortgage Disclosure Act (HMDA) Data, 2016 & 2017

Chart 3.7. Estimated Number of Renters That Could Afford a Mortgage by Income in the City of Chicago and by Neighborhood Market Type, 2016

Source: American Community Survey 5-Year Estimates 2016 and Home Mortgage Disclosure Act (HMDA) Data, 2016 & 2017