Quote:
Originally Posted by Handro
I said Chicago is relatively cheap. And it is. Using housing returns as the sole barometer of whether or not a city has a high COL is very stupid.
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Given that housing costs are, for most households, the largest costs, housing returns are absolutely critical for determining whether a locale is a good value.
Quote:
Originally Posted by Handro
A $50,000/year salary will go farther in Chicago than it will in New York, Los Angeles, Washington, San Francisco, or Boston.
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It won't, though. The typical household doesn't save any money by moving to an area with lower housing costs.
I know we've had a billion threads on this, but a salary doesn't go further because housing costs are lower, it just means that housing space will be larger. People don't adjust their budgets, they adjust their living space requirements.
And Chicago isn't a cheap city by most metrics. It has high property taxes, high sales taxes, high user taxes. Yes, the entry costs to housing ownership are lower, but that's largely because returns are worse.
And, excepting LA, Chicago is the comparison city where you are most likely to own a vehicle. Boston, DC and Washington have higher transit share than Chicago, and NY isn't even worth comparing; it's the only city where most households own no vehicles. A nonpoor family household in Chicago will almost certainly have a car.