Pilsen Neighborhood

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Submarket 1 41.7% of Pilsen

Lowest income, high distress, declining population, urban

Submarket 1 consists primarily of urban areas concentrated on the south and west sides of the City of Chicago, but also includes parts of Waukegan, Joliet, and south suburban Cook County. These communities are medium density with many 2–4 flats built before 1940. High rates of vacancy, foreclosures, and distressed sales in Submarket 1 may undercut the quality of existing homes. Significant population loss in Submarket 1 communities is likely both a cause and an effect of local levels of property distress. Nonetheless, Submarket 1 has good access to the regional transportation network, which helps keep transportation costs low. Despite low housing values and costs, declining incomes among Submarket 1 households have led to increased rates of cost burden. Educational attainment levels are low, and households in this submarket are lower income with the largest income declines of any of the submarkets. The submarket has experienced high unemployment, which has increased over time. Communities in this submarket are also aging, now with a greater share of older adults and fewer children under 15.

Submarket 2 32.4% of Pilsen

Higher density urban and suburban, large households, high foreclosure/moderate vacancy, low/moderate income

Submarket 2 consists of urban and suburban homes built before 1940 in parts of Chicago, Aurora, Elgin, Joliet, and Waukegan. Declining incomes likely influence the high and increasing levels of cost burden. Low transportation costs moderate concerns about high levels of cost burden. Many households rent, but comparatively fewer live in subsidized units than in submarket 1. The submarket has higher levels of foreclosure activity, but moderate levels of vacancy. Mortgage investment is low but cash sales are high, which when combined with the high foreclosure rates and low vacancy rates, points to the transitioning of homes from owners to renters. The larger households in submarket 2 frequently have children under the age of 15.

Submarket 3 23.1% of Pilsen

Higher density urban, high income, young, high home prices and rents

The majority of submarket 3 falls within the boundaries of Chicago, as well as parts of Oak Park and Evanston and can generally be characterized as a strong urban market. High and growing incomes generally mitigate high and increasing home prices and rents, resulting in lower levels of cost burden. Submarket 3 has the lowest transportation costs of any submarket. The housing stock can be characterized as high density urban, primarily consisting of older homes. While many residents of this submarket rent, only in submarket 3 did the share of households renting decline. Lower levels of subsidized housing are found in this submarket. Submarket 3 has a very active housing market with high levels of mortgage activity, turnover, and low vacancy. There are low levels of foreclosure activity and cash sales. The households in this submarket are younger, middle and higher income, with high levels of educational attainment. Smaller households, often 1-person, with few children fit the submarket’s high-density design. Submarket 3 was the only submarket to see an increase in median household income.

Submarket 7 2.7% of Pilsen

High population growth, newest housing stock

Rapid population growth since 2000 defines this submarket. In fact, it is the fastest growing of all eight segments tracked in this study. Submarket 7 primarily consists of exurbs in McHenry, Kane, Kendall and Will Counties but also includes the downtown core of Chicago. The housing stock in the exurbs is primarily low density and has few rental units. Housing in Chicago’s downtown core is a mix of high rise owner-occupied and rental units. The shared traits of recent growth and expansion help to define this submarket, but there are big variations in data. High transportation costs in the fringe areas of the submarket contrast with the low transportation costs found in the core of Chicago. Despite strong market conditions before 2008, moderate levels of lending, foreclosure activity, and distressed sales are present in the exurbs. Overall, the submarket typically consists of middle to higher income households with children and a relatively high level of educational attainment.