So the deciding factor becomes something more like, "How much is the job I'm being offered going to pay me vs the cost of living?" They may also think about personal contacts, and the future opportunities a city is likely to provide them? I'd imagine it doesn't go too much further than that though.
Not on the same scale everywhere, and certainly not as bad as KY/NJ/CT/IL. If you’re in the 40% to 80% income in those states, and you have 10+ working years left, it would make a measurable distance to move somewhere else where you can save $5k+ per year in taxes, if not more. Even more if you can go remote with a high salary.
Whether or not the "fair tax" passes will be an important bellwether.
What? The tax increases are just starting. This year, Illinois is voting to change from a flat % income tax to having marginal rates. Anyone earning any decent amount of money should expect to pay more and more every year in income tax, property tax, sales taxes, tolls, fees for car registration, basically anything that can help increase tax revenue since expenses aren't going anywhere but up also for the next couple decades. Unless benefit recipients die earlier than expected.
Just California has Prop 13 protections for land owners.
- Political and state-level financial stability risk (the entire state is a stock market hiccup away from bankruptcy)
- Catastrophic and increasing murder rate, which is only getting worse (not to mention other less-fatal crime)
- Deteriorating public schools driving wealthy families out, or at least to suburbs
I don't think Chicago is (yet) lined up to be a new Detroit, but there are real reasons to undervalue Chicago house prices right now...
The one thing Chicago has that many other cities don’t is space. Chicago is surrounded by land so there’s no lack of supply. My opinion is that’s what keeps prices down.