Illinois housing crunch sees prices rising, units dwindling

By Glenn Minnis | The Center Square contributor
The Center Square

(The Center Square) – With Illinois facing a housing shortage fueled by dwindling availability and rising prices, Illinois Policy Institute researcher LyLena Estabine argues every resident can point the finger toward lawmakers in Springfield.

“There are a lot of regulations that unnecessary hold up housing supply here in Illinois and don’t allow builders to build the diverse housing that we need in the state to meet a variety of needs,” Estabine told TCS. “They could allow for more duplexes to be built, for granny flats to be built in people’s backyards and they could also allow for multi-unit buildings, in a lot of places in Illinois only single-family houses are permitted.”

New data shows housing values have jumped by more than 44% over the last six years with a home that cost $191,454 in 2019 now hitting the market at $277,191. Across the board, data shows every area of the state has seen spiraling price growth as fewer properties have become available to families that may be in the market.

At the same time, available homes in Illinois have dropped by 52%, and since the pandemic the city has recovered just 36% of its pre-COVID listing levels.

“They could focus on reducing red tape as well streamlining the permitting process and also reducing delays and the permanent wait times that a lot of developers are seeing when they’re trying to add housing,” said Estabine. “Lawmakers in this coming session should focus on supply side reforms and unleashing housing abundance in our state.”

Estabine argues if lawmakers don’t take action now more residents will pay the price.

“We will also see more people looking for states where housing costs are reduced and we know that for people surveyed who talk about wanting to leave Illinois some of the top reasons that they list are high taxes and high housing costs,” she said.

“If we want to make Illinois a state where people are wanting to come and live and start businesses and raise families, we have to make strides to ensure that they have a place to call home and so that starts with ending the regulations that prevent that from happening.”