Why does SpringView Investments invest in Chicago?
One reason why we like Chicago as a long-term real estate investment opportunity is its global competitiveness.
According to The Economist's Global City Competitiveness Index, Chicago ranked - as of the end of 2015 - the ninth most economically powerful city in the world (and third in the United States.) The Economist's index includes 32 indicators of economic strength, physical capital, financial maturity, institutional character, human capital, global appeal, social and cultural character and environment and natural hazards.
Another measure of global competitiveness is consulting firm A.T. Kearney's Global Cities Index, where Chicago ranked the seventh most economically competitive city in the world, as of 2014. A.T. Kearney tracks business activity, human capital, information exchange, cultural experience, and political engagement in metros.
Chicago has ranked highly the United States as well. According to the publication Site Selection, Chicago in 2015 ranked number one among the largest cities in the U.S. in corporate relocation and facility project investment from corporations.
The U.S. economy is of course concentrated in a few geographic areas and markets - the east and west coasts, plus Chicago and a few others - but have you ever wondered how that concentration looks on a map that morphs to scale GDP?
MarketWatch and Max Galka of Metrocosm have answered the morph question. See above to see how distorted this U.S. map gets when sized for local economies.
In addition to its global competitiveness, we like Chicago's relatively improved employment rate, and consumer's generally positive outlook for Chicago's business community. According to the U..S. Bureau of Labor Statistics, total non-farm employment for the Chicago metropolitan area increased 1.3% during the 12 months ended May 2016.
For a detailed breakout of GDP by region, see here.
And for more information about how SpringView Investments evaluates homes for inclusion in its portfolio, please review our post "How To Evaluate Single Family Homes for Investment Purposes."