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Homebuilder Jerry James, president of Glenview-based Edward R. James Partners, doesn’t need to study statistics to grasp the sluggishness of the local housing market. He lives it. “This is the toughest I’ve seen it, and I’ve been in the business since 1985,” James says.
Catering to empty nesters, James sees the investment losses homeowners are experiencing when they downsize. Why is it happening? “Increasing taxes on property as a result of the pension situation is it in a nutshell. People’s homes aren’t appreciating, and tax bills are going up. It’s a bad combination that doesn’t feel good to anybody.”
Stagnant and depreciating home values throughout Illinois have become an offshoot of what we’ve been calling the “Illinois Exodus.” Last year’s estimated net reduction of residents hit 45,116, the worst of five straight years of population decline.
U.S. census data this spring showed the Chicago metro area lost 22,000 more residents from 2017 to 2018 — a fourth straight year of losses.
The downward spiral is part of a population slide from high-tax states to lower-tax states, creating less demand for housing stock here. And the statewide pension crisis that is driving up local property taxes creates a double whammy for residents trying to sell their homes.
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