Impact of Proposed Illinois Gross
Receipts Tax
RCF studied the economic effects of the proposed gross
receipts tax on the real estate market. The study focused
on the tax's cascading effect on housing prices, the effect
on real estate brokerage income, and the effects on new
housing construction (May 19, 2007).
Chicago Housing Market
Presentation
This presentation illustrates RCF’s objective analysis of
the change in housing prices within the city of Chicago
from 1993 to 2003. The analysis follows a top-down
structure. First, trends in Chicago housing prices are
compared to national housing price trends. Next, the
variation of housing price levels and trends within
different areas of Chicago is analyzed. Chicago’s real
estate market is subdivided into smaller submarkets and
changes occurring within the neighborhoods of each
submarket are examined. Following this, housing and
neighborhood characteristics that play an important role in
determining sale price are analyzed. The value of a house
is separated into two components: the value of physical
house characteristics and the value of the neighborhood.
Finally, the results of the analysis are used to identify
community areas in the city where price appreciation is
expected to continue in 2004.
This presentation was given to the Real Estate Industry
Association on November 13, 2003.