© Antonio Perez / Chicago Tribune / TNS A pedestrian crosses a crosswalk at the CTA and Eisenhower Expressway lanes during the morning rush hour on Oct. 5, 2022, as the Chicago skyline looms over the horizon.Chicago has attracted a lot of investment over the past decade, but how well its economy serves residents depends a lot on where they live. Between 2010 and 2020, majority-black neighborhoods gained a fraction of the total investment recorded in majority-white neighborhoods, according to a new Urban Institute study.
The city's attractive core has expanded in all directions over the past decade, with new residential and office towers popping up in nearby neighborhoods, but neighborhoods like Englewood and others to the south and west have languished, Washington, D.C. researchers say. I got a tank. There is no easy explanation for why this happens and no easy solutions, said senior researcher Brett Theodos.
"This is the sum of all the big and small, personal, corporate and public decisions made over the years," he said. "It's all mixed together."
Census tracts with more than 80% black residents attracted $7,801 per year in home investment, compared to $25,889 where black residents were less than 20%. Areas with large white populations in Chicago tend to have more investment per household. Census tracts with more than 80% white residents collected $32,707 per household, compared to $9,372 for less than 20% white residents.
But Chicago remains popular with investors, ranking 40th among the nation's 100 largest cities, according to the Urban Institute. Between 2010 and 2020, it brought in an average of $20,450 a year, less than national leaders like Washington, D.C., Denver, Seattle and San Francisco, but more than cities like New York, Dallas, Houston and Minneapolis.
Chicago has seen significant investment in non-residential sectors, including offices, manufacturing, warehouses and distribution centers. It ranks ninth among the 100 largest cities, with an annual average of 8,648 per worker.
That means Chicago has the ability to direct private investment to areas that need it most, Theodos said.
"The needs are real, but Chicago has something to be proud of and has the infrastructure to attract investment," he said.
Government programs like Mayor Lori Lightfoot's Invest South/West plan, as well as targeted investments by charities or affordable housing developers, Theodos added, are putting more of their dollars into disadvantaged neighborhoods, but not enough to eliminate inequality. .
Public and targeted investors have poured $9 billion into Chicago neighborhoods over the past decade, compared to $200 billion spent by private investors on single homes and non-residential properties in the city. But if dedicated public investors can show that new businesses and homes can thrive, private investors can be persuaded to invest more in poor areas.
"We hope the public sector will be a big bet and a catalyst for market activity," Theodos said.
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