Homeowners Face Significant Tax Hikes Amid Rising Assessments
Homeowners in Chicago’s South and West sides are bracing for substantial property tax increases due to sharply rising assessments. According to an analysis by the Illinois Answers Project and the Chicago Tribune, many homeowners are facing tax bills that could nearly double, impacting their financial stability and future investment plans.
Leodus Thomas Jr., a developer on the West Side, has witnessed significant changes since he purchased his home in the Austin neighborhood nine years ago. “We find distressed properties and get them back on the tax roll — but lately we’ve been punished for that — big-time,” he remarked. His home’s assessed value surged from $163,000 two years ago to $260,000 this year, leading to an estimated annual tax increase of around $700.
The assessment increases are not isolated to Thomas’s property. More than 37,000 residential properties in the South and West sides saw their valuations more than double between 2023 and 2024. In neighborhoods like Englewood and Roseland, the median homeowner experienced valuation increases ranging between 119% and 160%. In contrast, the median assessment citywide rose by only about 22%.
Mayor Brandon Johnson, who resides approximately two miles from Thomas, saw his home’s assessment increase by 35%. Many homeowners are now grappling with the challenge of affording higher tax bills despite the fact that their home values still lag behind those in wealthier neighborhoods.
The situation is exacerbated by the fact that homeowners in lower-income neighborhoods are less likely to appeal their assessments. A recent study indicated that many residents are unaware of this critical tool that could alleviate their tax burdens. In contrast, affluent areas like the Gold Coast, which have also experienced significant valuation hikes in previous years, saw much smaller increases this year, with the Gold Coast’s assessment rising only 3%.
As fiscal challenges continue for Chicago Public Schools and the city itself, which are major components of property tax bills, pressures on taxpayers are expected to intensify. Smaller taxing bodies, such as the Chicago Park District and the Metropolitan Water Reclamation District, have also increased their levies in recent years.
The Cook County Assessor’s office acknowledges that substantial increases in assessments generally correlate with higher tax bills. Scott Smith, chief of staff to Cook County Assessor Fritz Kaegi, noted, “Generally speaking, if you are seeing above-average increases in assessments, that is where there is a risk of bigger tax bill increases.”
These sharp assessment hikes can be particularly alarming given the context of previous adjustments. During the last city reassessment in 2021, the office had reduced assessments in many of these neighborhoods to correct what independent studies identified as consistent overassessments. For example, home assessments in Englewood dropped by 34%, resulting in a decrease in median tax bills from $1,308 to $677.
As property values in many disinvested neighborhoods continue to rise, driven by both community revitalization efforts and outside investment, the implications for homeowners remain complex. For instance, a newly built home in Austin recently sold for $449,000, significantly exceeding the $275,000 median sale price for single-family houses in the area.
The increase in property values is seen by some as a sign of gentrification. Smith described this as “an echo of the real estate speculation” that has affected neighborhoods like Pilsen and Logan Square in previous years. With new assessments impacting tax bills in the following year, many homeowners are left with uncertainty regarding their financial future.
Tools such as property tax exemptions and appeals can help mitigate the impact for some homeowners, particularly seniors. Clarence Hunt Jr., a retired CTA train operator, saw his home’s assessment nearly triple to $174,000. However, by securing the senior freeze exemption in 2023, he can maintain his tax rate at approximately $60,000.
The experience of other homeowners illustrates ongoing frustration regarding tax increases and local services. Ronda, a 62-year-old retired city worker, shared her concerns, stating, “Even if I did sell, where would I go?” after her home’s assessed value jumped from $132,400 in 2020 to $151,000 this year.
While rising property values can enhance personal equity and attract businesses, the reality for long-term residents is often stark. Speculative investors are increasingly active in these neighborhoods, driven by city-supported development programs aimed at rejuvenating areas once neglected.
Real estate agent Ri Prasad noted that city-backed initiatives have attracted investors seeking affordable properties, further driving up prices. However, this influx raises concerns among existing homeowners about their own financial viability and the potential for displacement.
Despite the challenges, community organizations like the Lawndale Christian Development Corp continue to work towards maintaining affordability for local residents. Richard Townsell, executive director of the nonprofit, expressed frustration regarding outside investors who prioritize profit over community stability.
The Cook County Assessor’s office has made efforts to inform residents about the rising assessments and encourage them to file for exemptions or appeals. However, many lower-income homeowners remain unaware of their options, which exacerbates the inequities in the property tax system.
As homeowners on the South and West sides prepare for tax bills based on these substantial assessment increases, the importance of proactive communication and targeted outreach efforts becomes clear. With property values shifting significantly and the potential for further increases looming, the financial landscape for these neighborhoods remains precarious.
