By: Diane Benjamin
The Bloomington Indiana population is 85,000.
The Bloomington Illinois population is 78,680.
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2000 Zillow apartment listings in Bloomington In: https://www.zillow.com/bloomington-in/rentals
266 Zillow apartment listings in Bloomington Il: https://www.zillow.com/bloomington-il/rentals
Prices are higher in Illinois because of short supply.
The answer to the housing shortage isn’t government. They created the problem, they can’t fix it.
Bloomington Illinois has 121 homes for sale.
Bloomington Indiana has 615 homes for sale.
Blue states vrs Red States.
Which Bloomington is prospering?
.
.
I wonder what these Stats were a Year ago? I am watching this guy, a Realtor saying homes he encounters, some still have everything in them, people just got up and left, BEFORE ICE came and got them. There is such a crisis because no one wants to by a 250,000 dollar home when most financial experts say DON’T BUY NOW! Because in less than a year, when the market corrects itself, the house will be worth 100,000 and you’ll be paying a mortgage on 250,000. I am not a financial person, but Mark Cuban, who probably is a financial expert says buckle your seat belt. The market is going to crash.
“Experts” have been claiming that for many years
WOW – that is a lot of apartments for rent!
TAXES in Illinois are also a factor….
Driving up the cost of the apartment rent
AND also driving up the cost for potential home buyers.
Tax Rate Breakdown =
Bloomington, Illinois (McLean County):Effective rate: ~2.08% of home value.Average annual tax bill: ~$4,324 to $4,411.
Context: Illinois consistently ranks among the states with the highest overall property tax burdens in the nation.
Bloomington, Indiana (Monroe County):Effective rate: ~0.99% of home value.Average annual tax bill: ~$2,796.
Context: Indiana benefits from state-level property tax caps (1% for residential homesteads) that keep effective rates closer to or below the national media
Indiana doesn’t fund schools from property taxes. They only use a small amount of local property taxes fro non-instructional expenditures. That’s one reason for the huge difference.
Illinois isn’t supposed to. The State isn’t doing their job.
Bingo!
Deport all illegals. Problem solved.
Amen! Deport them now! Signed, CONSERVATIVE LATINA.
Yes, housing crisis over
WGLT had an article a few months ago, discussing immigration and government funded immigration service NGOs. One NGO said there are over 11,000 people in McLean county who speak Spanish only. In a county with 172,000 people. This isn’t South texas or Yuma Arizona. This is central Illinois. A sanctuary city in a sanctuary state. The article highlighted how there are not enough Spanish translators in town to help maximize the number of free benefits and free services the county, cities, and NGOs want to provide to Spanish immigrants.
According to http://www.illinoisreportcard.com, in 2016, 6.1% of students in Bloomington D87 were listed as ESL, so English was not their primary language. Today, it is 12.8%.
Unit 5? 4.7% in 2016, and 9.5% today.
Connecting this to housing: according to the St.Louis Fed,
In 2016, the median home price in Mclean county was $150,000. Today it is over $300,000.
Likewise, total for sale housing inventory in 2016 was 1,400. Today it is around 400 units.
Over this 10 year time period, the total population of McLean county actually declined, from 173,000 to just under 172,000. So it’s not like our population has exploded in size, and there is just insane demand for housing and services. The makeup of the population has changed, the demographics have shifted from a producer class to a dependant class.
Immigration is the root cause and most important policy issue facing Mclean county and the country as a whole. Elections matter. One side wants to take from the Heritage Americans living in our rural county, and give it all to immigrants, legal and illegal alike. They plan to accelerate this transfer of public funds if they gain and continue to hold power. I thought the government was supposed to be of the people and for the people of America? Not for the people of a foreign land who don’t even speak the language of America.
Seen a podcast couple days ago. The immigration turned invasion of Ireland has pretty well sacked the entire country. Muslim takeover.
This is an overly simolistic analysis. Bloomington, Indiana isnt really comparable to Bloomington, Illinois. Indiana University has 48,000 students, compares to Illinois State University’s 21,000. That factor alone impacts the housing market in each city in a way that invalidates your comparison. Additionally, you can’t just look at Bloomington alone. Bloomington and Normal are one single metro area. Lots of people live in one and work in another. Yet another factor is the emergence of Rivian as a major employer in the metro area. That (the free market impetus of decent paying jobs at a local employer) is one of the factors responsible for increasing the demand for housing in the area and thus creating a shortage, not government policies. And finally, another major factor is that a number of home builders in the meteo area have retired in recent years. If those vacancies in the construction industry are filled by other firms, it creates a serious problem. And there are a number of other issues, as builders have reported difficulties obtaining private financing as well. So, your conclusion that “government regulations are causing the shortage” just isnt backed up with facts. The overall situation is much more nuanced than the political lens through which you see everything.
Go ahead and find a city comparable to both. Rent in Normal is high because many of the dorms got demolished, shortages raise prices
AhKSHuAlLy…
Your critique doesn’t even make sense. Sure, combined Bloomington normal metro is bigger than the Bloomington indiana population, but as you said the population of IU is 2x vs ISU, so the college would have a even larger impact on housing supply and prices. Yet they dont have the shortage issues we have here, despite us having a much lower college to total population ratio. If anything, one would logically expect a larger college population to raise rents and lower available supply of housing (college loans are easy to get and gov subsidized, aka overproduced).
Furthermore, there are many national and statewide housing builders, not just local. You don’t think Bloomington IN has had boomer housing developers retire? What happens when they retire? Did their companies just cease to exist? Or do they sell them to someone else who continues building? Or does the retirement not matter since they are publicly traded? This happens here and there. It’s a pointless argument.
Rivian has cut thousands of jobs in normal from their leak, but the housing supply remains well below (80%+ lower) than the 2016 housing market pre-rivian, and state farm has also cut jobs since 2016. The population of McLean countiy is LOWER today vs in 2016, by Almost 2,000.
And housing construction loans are mostly regional and national based. If there is actually a lack of private market financing available, remember we are essentially in the same regional market for banking services as indiana, and also banking is incredibly regulated at the state and federal level, so any perceived financing shortage is literally a result of government policies. Any shortage of financing here is equally a factor there.
So basically… Delete your account.
Correction of an early comment. The average $300k home in McLean County carries an $8000 tax bill or 2.66% well above 2.08%. Why would any builder want to invest in housing in this economic environment? Super high taxes, out of sight insurance rates and ever increasing state and local regulations? Unpredictable costs. Money flows to where it is treated best and it is not in McLean County housing…
Yes and why would any developer want to invest where the political climate is so toxic? Where political leaders think everything should be free and people with money to invest are the problem.
Yes so in McLean County, most people pay property taxes that are as high as their mortgage.
The 2% is a silly metric. The average property tax paid in McLean county is 8 grand. The median income is $80 grand. So property taxes are 10% of annual income.
Then we pay 4.95% of our income to the state income tax. So 15% total.
Then sales taxes of 9.75% on most things we buy. Let’s be generous and assume half of people’s annual purchases are in taxable items, so 4.5% adjusted to total income.
Basically to live in McLean county you are paying 20% of your total income to the state and local government, before fees and mandatory services.
Add on 13.5% federal payroll tax, average effective 10% federal income tax rate, most people in town pay over 40% of their annual income to the government.
In colonial era, The tea party was over a 3% tax on tea, and the average effective total tax rate in the colonies was 2%. So much for land of the free and home of the brave.
Keep in mind, Comrade Corey has raised your property taxes 23% in the last 3 years.
Past generations saved for their future, including a down payment for a home. Sacrifices were made to come up with money for important investments such as buying a house. Don’t see that behavior too much in today’s world. The younger generation believes they are owed a successful lifestyle without working for it. Then reality sets in. I would be embarrassed to be living at home after completing my education.
Maybe these parents should start charging rent and show, through example, how to accumulate a downpayment. Just a thought.