Tag: housing underproduction

How many more homes does Chicagoland need and is it 120,383?

Up For Growth, a national “more housing” research group, publishes an annual report about underproduction of housing in 193 regions, including Chicagoland. In their 2023 report they found that there’s an underproduction of 120,383 homes in the Chicago-Naperville-Elgin, IL-IN-WI metropolitan statistical area.

This graphic shows how U4G derived that figure of missing homes.

Housing underproduction as a narrative formula:

((existing households + missing households) * 1.05 [1]) - (total housing units + second/vacation homes + uninhabitable units) = underproduction

[1] means a 5% target vacancy rate

The novel metric here is “missing households”, which are households that haven’t formed due to a lack of housing. The report’s definition of missing households is:

Missing Households. Households that may not have formed due to lack of availability and affordability, e.g. households with children over 18 years of age still living with their parents or individuals or couples living together as roommates at levels exceeding historical norms.

In the Chicago region, 120,383 homes represents 3.1 percent of the housing stock in 2021, meaning we need to grow the number of homes in Chicagoland by 3.1 percent to accommodate these emerging families, graduating students, roommates, and doubled-up tenants. The necessary expansion of housing is greater than 3.1 percent, however, to accommodate migration and homes no longer in the market due to various forms of vacancy.

We also need more housing to help prices flatten or go down, and reduce the number of households that are cost-burdened. Among the top 10 cities with the most housing underproduction, Chicago has the lowest share of households which are cost-burdened, at 46.0 percent.

Data tips

To find the report’s preferred definition of the target vacancy rate you need to be able to subtract second homes, vacation homes, and uninhabitable homes. The Census Bureau’s American Community Survey has data on vacancy reason in table B25004 (view the data for table B25004 in Chicago on Census Reporter, a third party website that’s easier to navigate than the Census Bureau’s data portal).

Illinois might join the country’s league of states adopting land use reforms

Update on April 5, 2025: none of these bills were passed, but there is greater momentum in the current General Assembly for new bills. Read about them on my newer blog post.

Illinois House Representative Kam Buckner (26th district) has introduced three bills that would adopt land use reforms across all or a lot of the state. This is a trend happening across the United States to address twin crises of low housing construction and limited affordable housing caused in large part by individual municipalities restricting new housing.

I’ve summarized the three proposed bills below. If you would like to help get these adopted, join Abundant Housing Illinois.

Allowing accessory dwelling units

Accessory dwelling units (ADUs) are apartments and small backyard houses that are built to provide on-site housing for family members, or generate additional income. They are usually allowed by amending zoning codes to add design parameters that treat them differently than apartments, detached, or attached houses and exempt them from typical density limitations inherent in nearly all zoning codes.

Buckner filed HB4213 in November 2023, which would disallow any unit of local government in Illinois from prohibiting ADUs, which most governments in Illinois do through various zoning rules (the main one being that a residentially-zoned parcel is only allowed to have a single building).

A bill like this has already been adopted in California, Oregon, Washington, Massachusetts, and New Hampshire (at a minimum).

Letters to the editor

I submitted a letter to the editor in March and am waiting for the media outlet to select it for publication.

Coach houses are one type of small backyard house, common in Chicago. This one in Lakeview was built in 2023.

Lifting parking mandates

Buckner submitted HB4638 in January 2024 to get local governments out of the business of forcing a minimum number of car parking spaces at developments near transit, which are currently established without any rationale. You might say the amount of space cities require businesses and apartment buildings to provide is based on vibes.

Letters to the editor

  • My letter to the editor describing the benefits of not requiring so much parking everywhere, and specifically mentioned this bill, was published in The Daily Line in February.
  • Pete Snyder’s letter to the editor was published in the Chicago Sun-Times in March and asks Chicago to “finish the job” that the Connected Communities ordinance started and remove parking mandates citywide.
There are so many better things we can do for a community than dedicating land for car parking.

Allowing more than one home per lot

Most municipal zoning codes in Illinois have a zoning district called something like “R1” that allows one detached house on a lot, often setting a very large minimum lot size that must be assembled before construction can begin. Municipal leaders then apply R1 broadly within their municipalities’ boundaries, effectively banning condos, townhouses, row houses, and apartments – the most affordable kinds of homes to buy and rent.

Buckner introduced HB4795 in February 2024; it would apply to the state’s eight largest cities and require them to allow at least a “duplex” (two-unit house) on every parcel that allows a detached single-family house.

Naperville would be one of the covered municipalities; the city allows two-family dwellings in R2 zoning districts and slightly more homes per lot in the higher-number R zoning districts. Their B1 neighborhood shopping district also allows multi-family housing.

But the Naperville zoning map shows how prevalent R1 and its friends the “E” estate districts are: the vast majority of the city is zoned to allow only single detached houses.

Letters to the editor

My letter to the editor in support of this bill was published in the Chicago Sun-Times on February 26, 2024.