When you think of Chicago, you think of a global financial city, one of the top three cities in the U.S., and prestigious universities.

In fact, Chicago is home to the world's largest derivatives exchange, and it hosts major hub airports for United Airlines and American Airlines.

Additionally, there are world-class research universities like the University of Chicago and Northwestern University.

With all this, it's easy to assume that the city as a whole is quite wealthy. However, actual statistics show that Chicago's median household income is around $62,000, which is lower than the national median household income.

Considering the city's size and industrial competitiveness, it's natural to wonder, "Why is it so low?"

Chicago is one of the cities in the U.S. with significant income disparities. Areas in the North like Lincoln Park, River North, Gold Coast, and Lakeview are home to executives from financial firms, lawyers, doctors, and IT professionals. The average household income here exceeds $100,000, and luxury condos and multimillion-dollar homes are common.

In contrast, some areas in the South Side and West Side present a very different picture. There are many neighborhoods where income levels hover around $30,000. Unemployment rates are often much higher than in the northern areas.

Ultimately, Chicago's median household income of $62,000 is merely an average that reflects the wealth of the North and the relative struggles of the South and West, and it does not accurately represent the living standards of any one area.

The primary reason for this stark polarization is the change in industrial structure.

Until the mid-20th century, Chicago was a hub of American manufacturing. The steel, machinery, food processing, and railroad logistics industries drove the city's economy, allowing individuals with only a high school diploma to secure stable manufacturing jobs.

However, since the 1970s, as American manufacturing moved overseas, many factories began to close. Blue-collar jobs significantly decreased, and the areas most affected were the South and West.

On the other hand, the financial and professional services industries continued to grow. The futures market centered around CME Group, consulting, healthcare, legal services, and the biotech industry have steadily expanded, but these jobs mostly require highly educated professionals.

In other words, while manufacturing jobs disappeared, high-paying positions that could replace them were not accessible to everyone. This has become a significant backdrop for the ongoing income disparity.

Differences in education levels have also played a role. Around prestigious universities like the University of Chicago and Northwestern University, research institutions, startups, and medical facilities are concentrated, continuously attracting high-income talent. In contrast, areas with relatively low investment in education and business have not fully benefited from new industrial growth.

High taxes cannot be overlooked either.

Illinois applies a flat income tax rate, but property tax burdens are considered high even by national standards. Particularly, property taxes in Cook County significantly increase the cost of homeownership. While home prices may seem cheaper compared to New York or San Francisco, the actual cost of ownership tells a different story.

For example, the median home price in Chicago is about $330,000. While the price itself is lower than in other major U.S. cities, the annual property taxes can be substantial, leading to significant long-term costs.

The rental market is also challenging.

The average rent for a one-bedroom apartment ranges from $1,700 to $2,100 per month. Based on the median household income, many households spend over 30% of their income on housing. With living costs rising faster than income, there is a steady trend of young people moving to areas with relatively lower tax burdens, such as Texas, Florida, and Indiana.

However, there's no need to view Chicago's future negatively.

With a balanced development of various industries such as finance, logistics, healthcare, education, and consulting, the economic foundation is very solid. Its position as the largest transportation hub in the Midwest is not easily replaceable. World-class universities continue to produce talent, and investments in advanced research and development are ongoing.

In the end, Chicago is a city that embodies both 'wealth' and 'disparity.' While there are high-salaried finance and professional workers, there are still areas that have been slow to recover since the decline of manufacturing.

Thus, Chicago's median household income of $62,000 is a somewhat simplistic figure for understanding the city as a whole. It encompasses people living in entirely different economic environments. To truly understand Chicago, one must look beyond average income to consider regional income, tax structures, industrial changes, and population movements to see the city's real character.