Should You Buy Now or Wait in Chicago, IL?
Pre-filled with Chicago's median home price of $350,000, a typical rent of $1,800/month, and a 2.2% property tax rate. Adjust the rate and price assumptions to see whether buying now or waiting comes out ahead.
Your situation
Negative = you expect prices to fall before you buy.
Waiting comes out ahead over 7 years
By $59,256 in net worth
🏠 Buy now — net worth at year 7
$158,293
⏳ Wait 18mo — net worth at year 7
$217,549
Break-even price
6.0%/yr
Break-even rate
—
Rent while waiting
$33,098
Waiting is ahead by $59,256 at year 7
Waiting ends with $217,549 in net worth — $59,256 more than the alternative — and holds up across a reasonable range of rate and price assumptions. Waiting only pulls ahead if prices move below about 6.0%/yr during the wait.
- ›Shortening the wait from 18 to 6 months cuts the $33,098 of rent you'd otherwise burn before owning.
- ›Waiting only pulls ahead if prices move below about 6.0%/yr during the wait.
⚡ Waiting 18 months means $33,098 paid in rent with no equity to show for it.
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The Chicago market and the timing decision
Chicago's relatively low home prices combined with high property taxes mean the ongoing carrying cost of ownership is proportionally higher than the purchase price alone suggests — factor the 2.2% property tax rate carefully into your decision.
Illinois has a flat 4.95% state income tax, but Cook County property taxes are among the highest in the nation at an effective rate near 2.2% — significantly above the national average of roughly 1.1%, which is reflected in this calculator's default.
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Educational content only — not financial advice
Local price, rent, and tax figures are estimates for Chicago, IL and will differ by neighborhood and property. Future mortgage rates and home prices cannot be predicted. Consult a qualified mortgage, financial, or real estate professional before making a home-purchase decision.