Illinois can boost housing affordability with statewide zoning reform
Oregon made statewide changes in its zoning policies to help keep housing prices affordable. Many states have followed its lead. Illinois should, too.
Illinois has a housing affordability issue impacting too many families, especially those in need.
Almost one-third of Illinoisans spend at least 30% of their household income on housing, which is above the federal recommendation. Almost one-sixth spend more than 50%. In low-income households, over 81% spend more than the 30% recommendation and 57% spend more than half their income for shelter.
With low supply and rising inflation, housing costs are a nationwide issue. There is a constant shortage of housing, especially for low-income earners. In Illinois there is a shortage of 113,000 units – second highest in the Midwest, according to Up for Growth.
Other states have tackled this issue through housing reforms. Illinois should, too.
Oregon has long had an affordability issue, so they enacted reforms starting in 2019. By June 2021, they allowed duplexes on every single-family lot for towns over 10,000. As of June 2022, they allowed four-unit buildings and cottage clusters in all cities over 25,000 residents. They also banned parking minimum requirements near high-frequency transit service areas.
Since the first law went into effect in June 2021, the apartment rent prices in Oregon have increased by only 7.7% compared to 17.8% in Illinois as of May 2024. In general, these policies led to a large uptick in new permits for two- to four-unit buildings.
Since this breakthrough in statewide reform, other states have followed. In 2023 alone, Montana, Washington and Rhode Island have made major reforms. These reforms are:
- Allowing a greater variety of housing to be built including duplexes, triplexes, accessory dwelling units, tiny homes, etc.
- Shortening review processes, including environmental and design reviews.
- Expanding zoning to expand housing development near transit or commercial zones.
Vermont also ended single-family zoning, becoming the sixth state to do so after Oregon, California, Washington, Montana and Maine. They also limited parking spaces to 1.5 spots per unit or fewer.
Florida and Wisconsin also made some modest reforms in 2023, such as allowing more construction in commercial zones and removing some barriers that were previously used to deny construction of new housing.
This trend continued in 2024 when states such as Virginia, Tennessee, Colorado and Arizona worked to loosen restrictions and expand housing development.
At the local level, Chicago introduced the “Cut the Tape” proposal to limit zoning, speed up processes and allow a greater variety of housing.
Reforms can help fix the crippling shortages that price people out of better homes. Illinois leaders should work to expand these reforms at the state level.