The View from Chicago: 1,000 residents share their perspectives on the local economy, managing wealth and life in Chicagoland
September 2015
Charles Schwab 1
Methodology
What
An online study among a sample of the general public was
conducted by Koski Research.
Koski Research is neither affiliated with, nor employed by, Charles Schwab & Co., Inc.
When The study was fielded July 21 – July 31, 2015
Who
1,002 Chicagoans aged 21-75 completed the study. The sample was drawn from online sample sources. The geographical area of the sample included all the Illinois
counties in the Chicago Metropolitan Statistical Area (MSA). Quotas were set based on population statistics for Cook County, counties contiguous to Cook County and counties not contiguous to Cook County.
Note: Unless noted otherwise Chicago and Chicagoans refer to the Chicago area as defined above and the residents of this area.
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The Chicago Economy
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22%
30%
25%
23%
Becoming more
prosperous
Staying about the
same
Becoming less
prosperous
Cannot say
Becoming more
prosperous/
staying the same
(NET) = 48%
In the United
States
13%
17%
38%
32%
13%
30%
38%
19%
3
Only 1 in 5 say Chicago’s economy is becoming more prosperous
Q7 How do you view the economy in each of the following areas? (Base: All Chicagoans=1,002)
View of the economy
All Chicagoans
Becoming more
prosperous/
staying the same
(NET) = 70%
Becoming more
prosperous/
staying the same
(NET) = 57%
In my specific
area/neighborhood
In the Chicago area
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Better
17%
Same
51%
Worse
32%
4
About half of Chicagoans think Chicago’s economy is performing the same as the US economy overall; nearly a third think it’s worse
Chicago economy compared to US economy overall All Chicagoans
Q8 If you were to compare the economy of the Chicago area to the economy of the United States overall, would you say Chicago’s economy is… (Base: All Chicagoans = 1,002)
Especially among:
• Younger (23% among Millennials vs.
Gen X 17%, Boomers 13%, and
Matures 9%)
2015 vs
2014
Better +4
About the same -3
Worse -1
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86%
85%
84%
84%
56%
55%
47%
35%
27%
19%
14%
15%
16%
16%
44%
45%
53%
65%
73%
81%
NA
-1
NA
=
+5
+13
+2
+1
+4
-1
5
Chicagoans view their city as a global business hub, and see improvements in the job and housing markets compared to 2014; crime seen as hurting local economy
Agreement with statements about Chicago All Chicagoans
Q11 Please indicate your level of agreement or disagreement with each of the statements below. (Base: All Chicagoans = 1,002)
Difference vs 2014
Chicago is a global business hub
Crime is hurting the Chicago economy
Government debt is hurting economic growth
in the Chicago area
Chicago needs to invest in its infrastructure
(roads, highways, bridges, railways
I feel good about the property values in my neighborhood
There are plenty of job opportunities in the Chicago area
Children can get a good education in the
Chicago public schools
Overall cost of living in the Chicago area is reasonable
Local politicians in the Chicago area are doing a good job
making the economy stronger
Tax rates in the Chicago area are reasonable
NA
+1
NA
=
-5
-13
-2
-1
-4
+1
Disagree Agree
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85%
80%
50%
46%
32%
26%
25%
21%
18%
14%
12%
7%
7%
3%
4%
8%
12%
28%
34%
28%
29%
32%
52%
56%
69%
75%
+1
-3
NA
NA
+5
+3
+8
+8
+6
+4
+4
+3
+2
=
=
NA
NA
-3
=
-1
-10
-5
=
=
-8
+2
How Chicago compares to other US Metropolitan Areas All Chicagoans
13%
6
Chicagoans view their city as one of best for dining, the arts, and tech, but one of the worst for taxes, crime and cost of living
Q6 When you think about the top large metropolitan areas in the U.S., how do you think the Chicago area compares on each of the issues listed below? For each characteristic please indicate whether you think Chicago is “One of the Best” metropolitan areas or whether it is “One of the Worst”. (Base: All Chicagoans=1,002)
One of the Worst
Food and dining
Arts and culture
Technology industry
Infrastructure: roads, highways, bridges, railways
Housing market
Employment rate
Weather, overall
Cost of living
Local government effectiveness
Tax rates
Crime rate
Neither
One of the Best
nor One of the Worst
Quality education
Quality of life
12%
16%
42%
42%
40%
40%
47%
50%
50%
34%
32%
24%
18%
One of the Best
Difference vs 2014
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How Chicago is graded All Chicagoans
44%
35%
26%
23%
22%
21%
13%
12%
11%
7%
7%
32%
33%
38%
34%
37%
33%
31%
32%
26%
20%
20%
18%
23%
26%
29%
29%
28%
34%
35%
34%
31%
39%
3%
6%
6%
9%
9%
12%
14%
13%
17%
21%
22%
3%
3%
4%
5%
3%
6%
8%
8%
12%
21%
12%
A place for international tourists
A place that welcomes diversity
A place for young professionals
A place that is “business friendly” for large companies located here
A place for innovation
A place for entrepreneurs – those seeking to start and own a
business in the area
A place to raise a family
A place for the middle class
A place where a child can receive a good education
A place to spend your retirement years
A place where recent graduates can afford to live
A B C D FExcellent Fail
7
Chicago gets high marks as a place for international tourism, welcoming diversity and young professionals
Q12 How would you grade the greater Chicago area on each of the following? (Base: All Chicagoans = 1,002)
Chicago is a place…
Grade
76% NA
68% +1
64% -1
57% +5
59% +4
54% +5
44% +4
44% +1
37% +3
27% +9
27% NA
AB (Net) 2015 Vs. 2014
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13% 85%
85%
80%
78%
68%
63%
60%
49%
45%
45%
41%
31%
30%
15%
15%
20%
22%
32%
37%
40%
51%
55%
55%
59%
69%
70%
Characteristics of Chicago Believed by Chicagoans or Out of Towners All Chicagoans
Chicagoan beliefs
8
Chicagoans know their city for its culture and diehard sports fans, but say outsiders incorrectly believe it offers reasonable cost of living and real estate
Q31 The Chicago area is well known for a variety of different reasons. Which of the following would you characterize as local facts, and which would you characterize as outsiders' perspectives (i.e., images people in other parts of the country have of the Chicago area)? If you are not sure, please choose the choice that most describes your opinion. (Base: All Chicagoans=1,0002
Outsiders’ beliefs
Theaters, operas, museums
Diehard sports fans
Outstanding architecture
Hot dogs and pizza
Tourist destination
A convention town
Unbearable winters
A booming tech scene
Growing economy
A thriving local economy
Commitment to clean energy
High quality of life at a reasonable cost
Affordable real estate
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Personal Finances in Chicago
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19%
39%
26%
16%
13%
25%
44%
18% Very confident
Somewhat
confident
Not very
confident
Not at all
confident
10
More than a third of Chicagoans are not confident they will achieve their financial goals, and many believe living in Chicago hurts finances more than helps
Confidence in ability to achieve financial goals All Chicagoans
Q18 How confident do you feel that you will be able to reach your main financial goals? Q19 Would you say that living in Chicago helps or hurts your ability to reach your financial goals? (Base: All Chicagoans = 1,002)
Effect of living in Chicago on ability to reach financial goals All Chicagoans
It hurts – the overall cost of
living is just too high
It helps – living in Chicago
area provides me with the
opportunity to be
financially successful
Living in the
Chicago area
doesn’t affect my
ability to reach my
financial goals one
way or another
Uncertain
Not very/at
all confident
(net) = 38%
Especially among:
• Younger (28%
among Millennials
vs. 17% among
GenX, 15% among
Boomers and 6%
among Matures)
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65%
37%
32%
32%
29%
23%
19%
16%
6%
8%
Retirement
Medical expenses
Home repairs or improvements
Children's education
Buying a first home or new home (primary residence)
Taking a vacation in the United States
Taking a vacation outside the United States
Starting a business
Buying a vacation home
Other
11
Retirement is, by far, Chicagoans’ most important savings priority, followed by medical expenses, home repairs and children’s education
Top Three Savings Priorities All Chicagoans
Q22 Which of the following are your top three savings priorities? (Base: All Chicagoans = 1,002 )
• Older Chicagoans more often
than younger are saving for
retirement, medical expenses
and home repairs.
• Younger more often than older
are saving for children’s
education and buying a home.
• See Focus On Section for
specific details.
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13%
12
According to Chicagoans, a net worth of $660K and annual net income of $187K is needed to be financially comfortable
Q13 At what level of personal net worth would you say a person in the Chicago area could be considered financially comfortable? Q15 At what level of net income (personal annual salary) would you say a person in the Chicago area could be considered financially comfortable? (Base: All Chicagoans=1,002)
Net worth that would make a person financially comfortable All Chicagoans
6%
27%
27%
24%
11%
5% $2.5M +
$750K to <$2.5M
$250K to <$750K
$100K to <$250K
<$100K
Prefer not to say4%
29%
18%
22%
14%
13% $250K +
$150K to <$250K
$100K to <$150K
$75K to <$100K
<$75K
Prefer not to say
Average = $660K Average = $187.1K
Net income that would make a person financially comfortable All Chicagoans
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13%
13
But to be wealthy in Chicago, you need a net worth of $2.5M and annual net income of $725K
Q14 At what level of personal net worth would you say a person in the Chicago area could be considered wealthy? Q16 At what level of net income (personal annual salary) would you say a person in the Chicago area could be considered wealthy? (Base: All Chicagoans=1,002)
Net worth that would make a person wealthy All Chicagoans
6%
6%
8%
25%
28%
28%
$2.5M +
$750K to <$2.5M
$250K to <$750K
$100K to <$250K
<$100K
Prefer not to say 5%
10%
25%
20%
19%
21% $1M +
$500K to <$1M
$250K to <$500K
$100K to <$250K
<$100K
Prefer not to say
Average = $2.5M Average = $724.6K
Net income that would make a person wealthy All Chicagoans
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I am not building wealth
14
Less than a third of Chicagoans are currently saving and investing, and more than a third are not building wealth
Q17 How would you describe your approach to building wealth? (Base: All Chicagoans = 1,002)
I’m more of an investor –
invest my money in stocks,
funds, bonds, etc.
Approach to building wealth All Chicagoans
I am committed to both
I’m more of an saver – put my
money into a savings account
and don’t invest it 23%
10%
32%
35%
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Only one in five Chicagoans has a financial plan in writing
Q23 Do you currently have a financial plan? (Base: All Chicagoans = 1,002)
Have a plan
in writing
20%
Have a plan
but not
written
40%
Don't have a
plan
40%
Have a financial plan All Chicagoans
Have a financial
plan (NET) = 60%
Especially among:
• Men (65% have a plan vs. 55%
among Women).
• Employed (65% vs. 50% Not
employed)
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Life in Chicagoland
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20%
22%
32%
26%
Years lived in Chicago
More than 30
years
16-30 years
5-15 Years
<5 years
Mean = 20.8 years
Yes
74%
No
26%
How long lived in Chicago Among those not living in Chicago for whole life
17
Most Chicagoans are lifelong residents; newcomers have lived in Chicago for more than 20 years
Lived in Chicago for whole life All Chicagoans
Q1 Have you lived in the Chicago area all your life? (Do not count time you may have been away at school or in the armed services.) (Base: All Chicagoans = 1,002) Q2 How many years have you lived in the Chicago area? (Base: Those not living in Chicago their whole lives = 257)
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40%
4% 6%
6%
7%
9%
12%
16% Naperville
Lincoln Park
The Loop
River North
Schaumburg
Lakeview
Evanston
Other
13%
18
Naperville and Lincoln Park are the most desired areas to live in, but most say their preferred neighborhood is too expensive
Q9 If money were no object, where in the Chicago area would you like to live? Q10 What is preventing you from living in [RESPONSE FROM Q9]? (Base: All Chicagoans=1,002)
Reasons Not Living in Preferred Chicago Area All Chicagoans
Area of Chicago Would Like to Live (if Money Were No Object) All Chicagoans
65%
20%
16%
13%
4%
3%
4%
15%
It's too expensive
It's too far from work
The real estate options do not meet
my needs
It's too far away from family
members / friends
There's too much crime in the area
The schools in that area are not
high quality
Other
Nothing - I currently live there
Especially among:
• Younger: (31% among
Millennials vs. Gen X
17%, Boomers 18%,
and Matures 0%)
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12%
32%
56%
Own home
Rent home
Have other
arrangement
13%
19
More than half of Chicagoans own their homes; two in five renters plan to purchase a home in the next 5 years
Q25 Do you currently... (Base: All Chicagoans=1,002) Q25 Approximately what percentage of your income do you spend on your mortgage or your rent? (Base: Those who own or rent = 882) Q27 What are your housing plans over the next 5 years or so? (Base: Those who rent = 319)
Home ownership All Chicagoans
Average percent of
income spent on
mortgage or rent
Among owners and
renters = 31%
Housing plans over next 5 years:
Among renters
Especially among:
• Millennials (45%) and
Gen X (33%) vs 24%
Boomers and 18%
Matures)
Vs
2014
Own -6
Rent +6
Other arrangement =
40%
29%
31%
Purchase a home
Continue to rent
Uncertain
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8% 3% 2%
24%
29%
34%
24%
35%
3%
26%
12%
Where expect to live in retirement years Among those planning to live in a different area
20
One in five employed Chicagoans plans to move out of the Chicago area in retirement – most will head South or West
Where plan to live in retirement Among employed Chicagoans
Q4 When you think about retirement, what are your plans for where you will live? (Base: Employed Chicagoans = 627) Q5 Please indicate where you expect to be living for most of your retirement years? If not sure, a guess is fine. (Base: Plan to live in different area = 161)
Move to different Chicago
neighborhood
Stay in same
Chicago
neighborhood
Undecided; still
weighing options
Move
outside
the Chicago
area
Midwest = significantly
more than in 2014 (15%)
South
West
Midwest
Northeast A different country
Uncertain
Especially among:
• Younger (21% among Millennials vs.
Gen X 9%, and Boomers 6%; Matures
base size too low for analysis)
Don’t plan to retire
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Survey Demographics
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Demographics
All Chicagoans
2015 (n=1002)
2014 (n=1000)
Gender*
Male 50% 50%
Female 50% 50%
Generation
Millennials (21-33) 26% 27%
Gen X (34-49) 31% 31%
Boomers (50-68) 37% 36%
Matures (Over 68) 6% 6%
Mean age 46 45
Location*
Cook County 60% 60%
Contiguous to Cook County
33% 33%
Non-contiguous to Cook County
6% 7%
City of Chicago 31% 30%
Education
High school grad or less 18% 16%
Trade or technical school 4% 4%
Some college 27% 27%
College grad 37% 37%
Post grad 13% 15%
Prefer not to answer 1% 1%
All Chicagoans
2015 (n=1002)
2014 (n=1000)
Marital Status
Married/living with partner (Net)
54% 56%
Married 45% 49%
Living with partner 9% 7%
Single 30% 29%
Separated, divorced, widowed 15% 14%
Prefer not to answer 1% 1%
Children
Have children (Net) 58% 57%
Under age 18 25% 25%
Over age 18 26% 27%
Both over and under age 18 7% 5%
No children 42% 43%
Racial Background
White/Caucasian 70% 74%
African American/Black 19% 15%
Asian 6% 6%
Other 6% 3%
Prefer not to answer 2% 2%
Hispanic/Latino Background
Yes 9% 10%
No 91% 90%
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Demographics
All Chicagoans
2015 (n=1002)
2014 (n=1000)
Employment Status
Employed (Net) 63% 64%
Full-time 50% 48%
Part-time 13% 16%
Unemployed, looking for work
12% 10%
Homemaker or student, not looking for work
9% 9%
Retired, semi-retired 16% 17%
Industry Working in (among employed)
Education or health 18% 19%
Professional or business services
17% 18%
Financial services 8% 5%
Manufacturing 7% 10%
Information services 7% 7%
Transportation or utilities 4% 4%
Government 5% 3%
Construction 4% 5%
Leisure or hospitality 4% 4%
Farming, mining or logging
0% 1%
Other 26% 24%
All Chicagoans
2015 (n=1002)
2014 (n=1000)
Household Income
<$25K 14% 13%
$25K to $49.9K 23% 23%
$50K to $74.9K 23% 22%
$75K to $99.9K 15% 14%
$100K or more 16% 23%
Prefer not to answer 9% 5%
Mean $68.5K $76.3K
Total Assets
<$25K 31% 29%
$25K to $99.9K 20% 19%
$100K to $249.9K 11% 12%
$250K to $499.9K 10% 10%
$500K or more 8% 13%
Prefer not to answer 20% 16%
Mean $217.1K $301.3K
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Disclosures
The Charles Schwab Corporation provides a full range of securities brokerage, banking,
money management and financial advisory services through its operating subsidiaries. Its
broker-dealer subsidiary, Charles Schwab & Co., Inc. (“Schwab”), member SIPC, offers
investment services and products. Its banking subsidiary, Charles Schwab Bank (member
FDIC and an equal housing lender), provides deposit and lending services.
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