UChicago Study: Homeowners Could Have Saved $1.9 Billion Under Assessor Kaegi

A new University of Chicago study reveals that reforms by Cook County Assessor Fritz Kaegi could have saved middle and lower-income homeowners $1.9 billion in property taxes. The assessment changes aim to reduce inequities in tax burden distribution.

By Don DeBat

Reforms implemented by Cook County Assessor Fritz Kaegi could have saved middle and lower-income homeowners $1.9 billion in property taxes that they would have paid under the previous assessment system, according to a new University of Chicago study.

The report, titled: “An Evaluation of Progress on Residential Assessment Fairness in Cook County,” analyzed assessment data during Kaegi’s tenure from 2019 to 2024 and found that “the Kaegi administration has made substantial progress in improving the fairness of residential assessments” and “dramatically reduced” previous regressivity in the Cook County tax system.

The study was authored by Christopher Berry (right), a professor at The University of Chicago’s Harris School of Public Policy.

Regressivity is a common problem in property taxation and happens when lower-priced properties are over-assessed relative to their actual value, while more expensive properties are under-assessed.

As a result, the lower-priced properties shoulder more of the tax burden than they would under more fair assessments.

“Under the old system, when mansions and luxury condominiums weren’t taxed at their real value, working-class families had to make up for it. It was like Robin Hood in reverse,” said Kaegi. “We fixed that fundamental unfairness, and the data shows we’ve saved homeowners more than $1 billion in the process.”

Key findings from the report include the following:

• Low and middle-priced homes, the bottom 70 percent, are paying $1.9 billion less in property taxes under Assessor Kaegi compared with the previous administration.

• Under former Assessor Joe Berrios’ administration, the most expensive homes were under-taxed by roughly $1.7 billion, shifting that tax burden onto less valuable homes.

• Tax shifting has been “nearly eliminated” under the Kaegi administration, with all properties now within 10 percent of their correct tax share.

• Homeowners would save even more on their tax bills under Assessor Kaegi, but the Cook County Board of Review has systematically undermined this progress, shifting 3 to 4 percent of the tax base onto residential properties every year from commercial appeals.

In addition to documenting how Assessor Kaegi’s work has lowered property taxes for low and middle-priced homes, the report also reveals that the Assessor’s Office’s assessments have generally shifted the tax burden from homeowners to commercial properties.

(Left) Fritz Kaegi speaks at a celebration for Jesus “Chuy” Garcia in 2018. Photo by Max Herman/Chicago Sun-Times via AP.

However, “the Board of Review has granted commercial appeals at a rate that has effectively undone those changes,” Kaegi said.

A recent study of commercial assessments by Cook County suggests that commercial properties are under-assessed after appeals finish at the Board of Review, the report concluded.

Don DeBat is co-author of Escaping Condo Jail, the ultimate survival guide for condominium living. Visit escapingcondojail.com. For more housing news, visit www.dondebat.biz.