By James P. Regan

As published by GlobeSt.com, November 2003

As the 2003 Reassessment of the City of Chicago progresses, there are certain trends emerging that could structurally affect the demographics of the City’s north side.
Reassessments on multi-family residential properties have increased more than any other single segment of the real estate market, some more than 100%. The new assessments directly reflect the high sales prices of rental buildings. At the same time, multi-family rents have stagnated, vacancies have increased, and operating expenses have escalated due to higher insurance premiums and fuel costs.
Especially affected are the Lake View, Edgewater, and Rogers Park neighborhoods, whose rental buildings offer affordable housing to young singles, newly arrived immigrants, as well as the working poor. The specter of much higher real estate taxes created by the new assessments and the continuing expectation of lower revenues could lead to the collapse of the rental market on the north side and a radical change in its population.

James P. Regan is the managing partner of the Chicago law firm of Fisk Kart Katz and Regan, Ltd., the Illinois member of American Property Tax Counsel (APTC), the national affiliation of property tax attorneys.