Abundant Housing Illinois

Link to full article in the Chicago Tribune

It’s no secret that Chicago faces a housing crisis. In 2020, the city’s Housing Department estimated that the city faces a shortfall of 120,000 affordable units. And that number has almost certainly risen as rents have spiked, especially in supply-constrained wealthy neighborhoods.

Making room for new residents can be politically tricky. But while Chicago’s housing crisis is old news, new members of the City Council are already starting to tackle the problem.

No single ordinance will solve Chicago’s affordability challenges. But we can’t hope to address our housing shortage unless we actually build more housing. Unfortunately, that’s easier said than done. In many parts of the city, it’s illegal to build more low-cost units, including accessory dwelling units, or ADUs, and classic Chicago three-flats.

Historically, homeowners could build small backyard or basement ADUs to house family members or generate a bit of income. These units dot the city — yet their construction is essentially outlawed today. According to real estate data provider Chicago Cityscape, in the five pilot areas where ADUs are allowed, reported construction costs are much lower than for other types of housing, with a median cost of just $75,000 for basement units and nearly $145,000 for coach houses. Permitting them citywide would support the gentle density and lower-cost housing units that enable residents to stay in their neighborhoods, while also creating high-paying construction jobs.

Classic Chicago two- and three-flats should also be legalized across the city. These units are Chicago’s most affordable source of market rate housing, according to the DePaul Institute for Housing Studies. But as the Chicago Area Fair Housing Alliance has shown, starting in the 1970s, restrictive zoning changes have made it progressively harder to build new housing on the North and Northwest sides. As a result, three-flats are illegal to build in many high-income neighborhoods, including areas in proximity to CTA lines.

Legalizing ADUs and three-flats would have climate and financial benefits as well. Residents who live in dense neighborhoods with access to mass transit drive less and are responsible for far lower carbon emissions than if they relocate to the suburbs, according to researchers at the University of California at Berkeley. And a combination of more residents and lower housing costs means more resources to fund essential city services, neighborhood investments and, of course, our pension obligations.