We recently compiled a list of the 16 Best Places to Live in Chicago and in this article, we will talk about the top place.
Chicago is one of the most populated cities in Illinois and is also a hub for business activity with a large concentration of corporate headquarters. The state of Illinois benefits from the business activity in the city particularly because of the business climate of Chicago and due to its position as the 3rd largest city in the United States.
Employment Situation in Illinois
Although the economy of Illinois returned to the pre-pandemic level of employment by the end of 2023, the growth has been stunted and remains below the average mid-western pace. Similar to the national employment landscape the base of job creation in the state has also narrowed down. According to Moody’s State of Illinois Economic Forecast Report 2024, unemployment in Illinois went up slightly during the second half of 2023, averaging at 4.7% during the fourth quarter in comparison to the regional unemployment rate of 3.7%. On the bright side, the growing healthcare, government, and hospitality market of Chicago is contributing to flattening the job loss curve of the state’s economy. Over a long-term analysis of the employment status in the state, Midwest region, and nationally, there has been a slight increase. Employment in Illinois was 0.4% higher in the last quarter of 2023 as compared to that of 2019. However, the Midwest and the US overall outperformed Illinois with an increase in employment of 1.1% and 3.6% since 2019.
In the near-term, Illinois is expected to stay a low performer in the already slowly growing Midwest region. Moody’s analysis forecasts the unemployment rates of Illinois to remain higher during 2024 in the Midwest region and nationally. According to the forecasts the unemployment rates are expected to be around 4.8% in Illinois, 4.3% in the Midwest region, and around 4% nationally during the current year. Moreover, Michigan is expected to be the only midwestern state with a higher unemployment rate of approximately 5% by the end of 2024. If you are looking to relocate you might be interested in reading the 20 Worst States for Education in the US and the 20 Cities With the Highest Electricity Rates in the US.
However, in the long-term, the outlook for the state is positive. The service industry of Illinois is expected to diversify, Chicago is being developed as a transportation and distribution hub in the Midwest, and the tech industry is also forecasted to cultivate more employment opportunities. Moreover, the financial services and the tourism sector of the state are also forecasted to grow. The financial sector of Illinois employs 6.7% of the state’s workforce and 7.3% of Chicago’s workforce as compared to a 5.9% employment rate in the financial sector nationally. One of the contributing factors to this increased share in the financial sector is due to Chicago’s promising commodities exchange. Chicago is also considered one of the world’s capitals of futures trading as it is home to some of the world’s largest derivatives exchanges.
Northern Trust Corporation (NYSE:NTRS) is a leading financial holding company headquartered in Chicago. The company provides wealth management, asset management, and other related banking services. On May 28, Northern Trust Corporation (NYSE:NTRS) announced that Partner Group, a leading global private markets firm based in Switzerland, selected Northern Trust Corporation (NYSE:NTRS) as its assets servicing solutions provider. The company will be providing funds accounting, transfer agency, corporate secretarial, and depositary services for Partner Group’s Private Equity ELTIF Evergreen Fund. Here are some comments from the earnings call transcript of Northern Trust Corporation (NYSE:NTRS) for Q1 2024:
Our average balance sheet increased 6% on a linked quarter basis, primarily due to higher deposit levels. It declined 2% compared to the prior year due to lower borrowings. Average deposits were $112 billion, up nearly $11 billion, or 11% from the fourth quarter, and were meaningfully better than our expectations. We experienced a stronger-than-expected surge in deposits late in the quarter, with an ending balance up $8 billion, or 7%, to $124 billion. Despite significant leverage capacity, we reduced our average short-term borrowings by 11% relative to the fourth quarter and total borrowings by 6%. This translated to $535 million in net interest income and a net interest margin of 1.61%. Moving to the asset side of the balance sheet, following the securities sales completed in November and January related to our portfolio repositionings and the increase in deposits, average cash on our balance sheet increased by nearly $10 billion or 38%.
Chicago’s Labor Market and Real Estate Trends
According to the US Bureau of Labor Statistics, the total nonfarm employment for the Chicago area stood at 4,704,800 in February 2024 as compared to 4,694,100 a year ago. Moreover, the education and the health services sector witnessed the greatest increase of more than 24,600 employment among other sectors. Other sectors witnessing an increase in employment in Chicago are the leisure and hospitality sector, manufacturing, and construction. The leisure and hospitality sector stands as the second best with an increase of 8,100 employees in the last year. However, the increase in employment in the city of Chicago is minimalistic as compared to the national growth rate of 1.8%.
In the real estate market of Chicago, the number of houses sold is decreasing and the median prices are rising. According to a report by Norada Real Estate Investment, the sales of houses decreased by 14.1% from March 2023 to March 2024. However, regardless of the decrease in the sale of houses, the median price increased during the same period. The median price of a home increased 9.6% in a year reaching $333,900 in March 2024 against a price of $310,000 in the previous year. The increase in prices represents a growing demand for houses in the city. You can also look at the 25 Cities Where Home Prices Are Falling Most Now.
High rise office buildings used by the financial technology platform in Chicago.
Our Methodology
To curate the list of the 16 best places to live in Chicago, we did an analysis on Reddit. First, we sifted through 5 rankings on the internet to get an aggregate list of best places. Then we researched 10 different threads on Reddit that asked Redditors to comment on the best places to live in Chicago. Across these threads, we reviewed all the comments and added the upvotes for each best place on our list. We shortlisted the places with a total of at least 100 upvotes. Finally, we ranked the list in ascending order of the total upvotes on Reddit.
Note: This list is not exhaustive and does not reflect our opinion. The ranking is solely based on the opinions of Reddit users. Also note that we have included places located in the suburbs of Chicago.
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The Best City to Live in Chicago
1. Naperville
Upvotes: 501
Naperville is situated in the suburbs of Chicago and ranks as the best place to live in Chicago. The neighborhood blends all big city amenities with thriving businesses, eateries, and shopping centers and yet has the quietness of a small town. In addition, the tree-lined streets and the river walk offer a calm walking experience away from the buzz of city life. The place is rich in cultural events, art exhibitions, and athletic events to entertain its residents. Naperville is also renowned for its education system and its public schools are recognized as some of the best schools in America.
To learn about other best places to live in Chicago, you can check out our detailed report on the 16 Best Places to live in Chicago.
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Disclosure: None. This article is originally published on Insider Monkey.