CHICAGO, IL (Chambana Today) – Illinois is facing a major housing shortage and will need to build at least 227,000 new homes over the next five years to keep up with growing demand, according to a new report titled You Can’t Buy What You Can’t Afford: Illinois’ Housing Shortage and Ways to Fix It.
The report reveals that the state is currently short 142,000 housing units, a gap driven by strong job and income growth, shrinking vacancy rates, and a sharp rise in investor-owned properties. These conditions, combined with increasing home prices, mortgage rates, insurance costs, and property taxes, have made housing less accessible for many Illinois residents—especially working-age adults struggling to enter the market.
Despite being more affordable than many other states, Illinois is now at a turning point. The report warns that without action, the state will continue to fall behind in meeting housing needs, impacting both urban and rural communities.
To close the gap, researchers recommend that state and local leaders double current housing construction levels and implement a suite of policy changes. Solutions include:
- Easing zoning laws for multifamily housing
- Streamlining the permitting process
- Reducing parking requirements to cut development costs
- Incentivizing long-term housing over short-term rentals
- Providing financial incentives to developers
- “These are not abstract numbers—they represent real families and individuals who are being priced out of the market,” said one housing policy expert involved in the study. “The solutions are available. It’s up to policymakers to act.”
The report calls for immediate and collaborative efforts from state, county, and municipal leaders to ensure a more stable and affordable housing future for Illinois.