Illinois families are grappling with a severe housing crisis as home prices continue to rise, pushing many communities out of reach for working households.
Since 2018, the average home price has increased by nearly $90,000, causing significant challenges for potential homeowners.
According to Zillow’s Home Value Index, state home values have skyrocketed by 46.2% over the past six years.
A typical home that was valued at $193,307 in August 2018 now commands a price of approximately $282,573.
In certain regions, the situation is even more dire.
For instance, Park Forest has experienced a staggering price increase of 102.1%, while North Chicago has seen an even greater rise at 123.1%.
Many families find themselves being priced out of their longtime neighborhoods, where they had hoped to raise their children and settle for the long term.
What is driving these escalating prices is a significant lack of housing supply.
Illinois is facing a growing housing shortage, with recent studies estimating a need for 227,000 additional housing units over the next five years to satisfy demand.
This necessity would require construction efforts to double, an ambitious goal that appears unrealistic.
Zillow data reveals that each of Illinois’ 26 metro areas has experienced a decline in housing inventory since March 2018.
In the Chicago metro area alone, the number of housing listings has plummeted from 38,581 in 2018 to just 24,181 today, marking a 37% decrease.
This reduction has effectively barred thousands of families from homeownership opportunities.
The situation isn’t unique to Chicago; several metro areas across Illinois have faced even steeper drops in inventory, leading to heightened competition, bidding wars, and forcing families into homes that stretch their budgets thin.
Compared to the national scene, Illinois is lagging significantly.
While many other states are replenishing their housing supply, Illinois has only regained 40% of its pre-pandemic housing listings.
In contrast, the national average sits at around 90%, putting Illinois’ recovery into perspective.
In the past year, the U.S. has seen a housing inventory increase of approximately 15%, while Illinois has only managed a mere 2% improvement.
This stark contrast means that families in Illinois face a tougher struggle than those in other states when it comes to finding affordable homes.
As housing listings dwindle, the competitive landscape pushes prices even higher.
Addressing the crisis hinges on increasing construction, yet many Illinois metro areas continue to lag in home-building rates.
The roots of Illinois’ housing crisis lie in policy decisions spanning decades that have made homebuilding more complex and expensive in desirable areas.
Restrictive zoning regulations prevent developers from offering housing options that working families can afford.
In tandem, Illinois’ heavy tax burden significantly impacts household budgets, leaving less disposable income for housing and exacerbating the affordability issue.
Proven solutions exist for communities willing to consider them.
Cities could allow up to four-unit buildings in zones currently restricted to single-family homes.
Eliminating mandatory parking minimums, as Chicago has recently done, could open land for housing in areas with good transit access.
Furthermore, legalizing accessory dwelling units could create more living space for young professionals and older residents on existing lots.
However, implementing these solutions requires community leaders to relinquish some control over development instead of further complicating processes with red tape and additional requirements.
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