Illinois homeowners see nearly $13,000 increase in first-year costs since pandemic

August 15, 2022

With soaring costs of homeownership, Illinois leads the nation in foreclosures

PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Rebecca Susmarski (312) 607-4977

Illinois homeowners see nearly $13,000 increase in first-year costs since pandemic
With soaring costs of homeownership, Illinois leads the nation in foreclosures

CHICAGO (Aug. 15, 2022) – Buying and owning a home in Illinois has become much more expensive than just three years ago. The first-year cost of owning a house has increased by $12,717 in 2022 compared to the same exact house in 2019, new Illinois Policy Institute research finds.

This leaves the Illinois housing market with its lowest affordability level since 2007.

The cost increases include:

  • An increase of $7,792 for a down payment to cover a median price increase of $38,961 on a typical home.
  • $3,876 more per year on mortgage principal and interest payments.
  • Property tax payments worth $1,048 more per year.

Increased housing costs have been accompanied by foreclosures nearly tripling in the past year. Illinois leads the nation in foreclosures in 2022.

“The rising costs of homeownership contribute to a housing market and economy that is becoming harder for working Illinoisans to afford each day,” said Bryce Hill, director of fiscal and economic research at the Illinois Policy Institute. “The state’s abysmal foreclosure rate indicates Illinois homeowners can’t afford to add another load to their financial burden. Still, Illinois politicians continue to drive up property taxes that make the American Dream of home ownership unachievable for many in the Prairie State.”

Amendment 1, a proposed constitutional amendment at the top of the ballot, would increase taxes an average of $2,149 over four years for property owners and be passed on to renters if voters accept it on Nov. 8.

“Instead of putting a tax increase in disguise on the ballot, Illinois politicians should be focused on passing reforms that would alleviate the financial burden on taxpayers and position the state for a more stable and prosperous future,” Hill said. “Changing the state constitution to implement structural pension reform would be much better for Illinois than changing it just to benefit a select few.”

To read more about housing affordability in Illinois, visit illin.is/newhomecost.

For bookings or interviews, contact Rebecca Susmarski at media@illinoispolicy.org or (312) 607-4977.