A client looking for a single-story home without stairs after retirement once faced a dilemma between a condo in downtown Chicago and a single-story single-family home in the suburbs. If the budget is the same, comparing the two options side by side makes the decision much easier. The median price for single-family homes in Chicago is $440,000, which has increased by $25,000 from last year, while the median price for condos has also risen to about $428,050. Just a few years ago, condos were definitely cheaper than single-family homes, but recently, the prices of the two have come quite close.

If the price difference has narrowed, then we need to look at the practical differences in management fees and heating/cooling costs. The average electric bill in Illinois is about $184.13 per month, and during winter, gas heating costs an additional $110 to $160 per month. Condos often share a building-wide heating system, which means individual units typically have a lower winter bill, but this also means that heating costs are already included in the management fees, resulting in a larger fixed monthly expense.

When comparing single-family homes and condos side by side, these differences become apparent. A single-family home allows for a yard and independent space, but the owner is responsible for all repairs to the roof, boiler, and plumbing. In contrast, condos resolve these burdens within the management fees, but if the building's reserve fund is insufficient, a special assessment fee can suddenly arise, which should be confirmed before signing a contract.

Property taxes follow the Cook County standards. The combined tax rate is formed between 5.5% and 8% of the EAV, with the effective tax rate based on actual market value ranging from 1.8% to 2.5%, and the overall average effective tax rate in Illinois is 1.88%, which is among the highest in the U.S. If you are over 65, you can receive an $8,000 exemption from the taxable value through the Senior Citizen Homestead Exemption, and when combined with the Homeowner Exemption, it can reduce your taxes by up to $750 annually.

If you are looking for single-story properties, it is better to also consider active senior communities in the suburbs, which have a 55+ residency requirement. Many of these communities include snow removal and landscaping management in their fees, reducing the burden of stairs and yard maintenance, but since management fees vary by community, it is important to check each item before signing a contract.

If you are moving to Chicago from another state, you may often misjudge the Cook County property taxes and winter heating costs based on your previous residence. Neighborhoods with good school districts tend to have higher sales prices and property taxes, so if resale value is a consideration, it is wise to check the school district ratings as well. School district boundaries change frequently, so it is safest to verify the assigned school for the address before purchasing.

For investors looking for rental income, Chicago has areas with steady rental demand and others that do not. It cannot be definitively stated that a specific area will always appreciate, so it is prudent to calculate vacancy risks and management costs, and to verify rental demand with data. Given that Chicago is a city with long winters, it is also essential to check whether heating costs are included in the management fees when choosing a condo. If you decide to maintain a single-family home, you should also check the condition of the windows and insulation. Poor insulation can lead to significantly higher gas bills in winter, so comparing the costs, including replacement expenses, with condos is accurate. Installing double-pane windows often noticeably reduces winter gas bills, so if a major renovation is daunting, considering partial renovations first can be a good approach.

Ultimately, in Chicago, the price difference between condos and single-family homes is not as significant as it once was, so calculating the monthly management fees, heating/cooling costs, and Cook County property tax reductions together seems to be a realistic choice. This article is not investment or legal advice, and it is recommended to consult with a tax advisor or real estate professional before making any actual contracts.