Make 2026 the year to achieve real progress on reforming housing affordability
November 24, 2025
By Steffany Bahamon, Jasmine Omeke and Steven Vance
Link to full article at Crain's Chicago Business
Of all the major cities in the United States, Chicago provides the greatest value, with robust amenities and culture without correlated housing costs. But if Chicago wants to retain that status, some things need to change. Rents in Chicago are growing faster than the country’s average, and the inventory of housing for sale in the Chicago area is at an 11-year low. In September, Redfin published data showing asking rents had increased 11% year over year. New construction is lagging, too. When we look at new homes permitted per year in Chicago, we see a sharp drop in the number of permits for detached houses and multifamily buildings in the last three years.
There isn’t enough housing available for the new households moving into Illinois or relocating between cities and neighborhoods. Plus, households today have fewer people, requiring more homes to support the population. The Illinois Economic Policy Institute estimates the state is short 142,000 homes. Recent Census Bureau data shows that Chicago hit a demographic milestone: The city now has more households than ever before, even compared to 1960, when the city had about 1 million more inhabitants.
Compounding the problem is that people's incomes are not keeping up with rents. In Cook County, wages went up 4% from 2024-2025, and across Illinois they went up only 3.2%.
Household growth and rising rents are clear indicators of demand and evidence of the need for more homes. By increasing the housing supply, Chicago can maintain an affordability that both entices people to live here and makes it practicable to do so. No amenity or cultural offering can compensate for an inability to make ends meet, and a failure to anticipate growth prohibits growth.
The climbing cost of housing is a main reason why 450 people have joined Abundant Housing Illinois, and bringing down costs is why they help in the political fight to show there is support for more housing. In 2025 about 50 Abundant Housing Illinois volunteers from Chicago and Champaign traveled to Springfield on multiple occasions to meet their legislators and talk about this statewide housing shortage. We specifically advocated for HB 1813 and , two bills introduced in the state Legislature that would have permitted accessory dwelling units (ADUs), like granny flats and coach houses, across Illinois and two-, three-, and four-unit houses in many municipalities, respectively.




