Real Estate

Gov. Pritzker wants zoning changes to implement access to Illinois housing

Illinois state lawmakers took up housing affordability last year. Results below. Now, Gov. JB Pritzker has moved to put housing at the center of Illinois’ broader affordability agenda.

“The problem is clear – rents are too high and home ownership is too far out of reach,” Pritzker said in his State of the Union address on Wednesday. “We’re not building enough homes fast enough.”

The governor’s answer is the new Building Up Illinois Developments, or BUILDING, program, framed as a statewide push to lower housing costs by making it easier, faster and cheaper to build. The key piece is legislation that would override selective zoning restrictions by authorizing “family-friendly” housing types such as duplexes, triplexes, four-bedroom apartments and condos across the county.

Pritzker’s proposal would eliminate the zoning for single-family homes larger than 2,500 square feet. The governor’s plan starts a path followed by other governors and state legislatures that have stepped up to address housing affordability. Among them, Colorado, Washington, Texas, Florida and California have made some progress. In neighboring Indiana, lawmakers have proposed housing reforms to curb zoning and encourage new residential construction.

Widely considered a Democratic presidential hopeful, Pritzker also joins other potential contenders in raising housing. Pennsylvania Gov. Josh Shapiro proposed a major housing reform effort earlier this month, and California Gov. Gavin Newsom has signed several housing reforms into law in the past few years.​​

Support and opposition to the plan

Illinois REALTORSThe state’s largest real estate group, applauded Pritzker’s embrace of “off-center” housing.

“Over the past six years, our members have been a leading voice at the Capitol and in city halls and local towns fighting for meaningful solutions to our state’s housing crisis,” Illinois REALTORS CEO Jeff Baker said in a statement.

However, as in other states, Pritzker’s plan is facing opposition from the local government lobby

“Design and land use decisions are best made locally by elected leaders in those communities,” said Brad Cole, CEO of the Illinois Municipal League, in a statement. “This is another example of when the authority equivalent to the whole country does not work and will harm the communities.”​​

Illinois housing affordability over parking regulations

A University of Illinois research group, the Project for Middle Class Renewal, reported in 2024 that the state has an existing shortage of 142,000 units and must add about 227,000 homes by 2030 to meet demand.

Late last year, a senior housing official produced legislation called “The People Over Parking Act,” which would have restricted parking in new areas near public transportation. That move builds on a zoning change Chicago passed earlier, making it one of the largest US cities to eliminate those mandates around transit.

Pritzker noted the parking instructions at his address. The state law goes into effect in June.

“The good news is that we have developers who are ready to build the homes and people in Illinois who need them, but it’s not being done because of these laws,” she said.

The BUILD proposal includes a tiered approach to the number of units allowed in rentals. A developer can build up to 4 units on lots from 2,500 square feet to 5,000 square feet, six units on lots from 5,000 square feet to 7,500 square feet, and eight units on lots larger than 7,500 square feet.

Alongside the land use campaign, Pritzker proposed $253.7 million in general funding for the Home Illinois program, which coordinates programs for homelessness and housing insecurity. The program includes $81.5 million for shelters and other services for homeless residents, $62.3 million for supportive and preventive housing, $50 million for court rental assistance, $42 million for emergency and transitional housing, and $25 million for rapid rehabilitation.

The housing agenda meets financial politics

Pritzker framed his housing agenda as part of a broader effort to help Illinois residents deal with inflation and cost-of-living challenges, linking housing costs to rising prices for food, electricity and other essentials.

Now that the governor’s BUILD plan, statewide zoning standards and expanded homelessness funding are all high on the list of priorities, the upcoming legislative session will test whether the Democratic governor can turn an ambitious housing platform into tangible changes in how and where Illinois builds.

Success depends on how Pritzker and his team deal with opposition from local governments and Republicans who want tighter control of the state’s finances.

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