The Property Tax Crisis Threatening Chicago’s Real Estate Markets

Commercial appeals shift costs to homeowners

Property taxes in Chicago’s Cook County have climbed 182% over the past 30 years while inflation rose just 91%, creating an affordability crisis that threatens to reshape Chicago real estate markets from residential neighborhoods to downtown office towers. Property owners paid $19.2 billion in taxes in 2024, up from $6.8 billion in 1995, according to a new study from County Treasurer Maria Pappas released Monday. Average wages grew 161% during the same period, meaning tax bills are consuming an ever-larger share of household income despite laws ostensibly designed to cap increases. The disconnect is particularly stark when examining what homeowners should be paying versus what they actually owe. If property taxes had kept pace with inflation, the median bill would be around $3,057 instead of the actual $5,827.