What's Happening?
Illinois is experiencing a significant housing shortage, characterized by a decrease in available units and a sharp increase in prices. According to LyLena Estabine from the Illinois Policy Institute, the shortage is largely due to restrictive regulations
that hinder the construction of diverse housing types. Over the past six years, housing values have increased by over 44%, with the average home price rising from $191,454 in 2019 to $277,191. The availability of homes has decreased by 52%, and the state has only recovered 36% of its pre-pandemic listing levels. Estabine suggests that lawmakers should focus on reducing red tape and streamlining the permitting process to address the shortage.
Why It's Important?
The housing shortage in Illinois has significant implications for the state's economy and its residents. High housing costs are a major factor driving people to consider relocating to other states. If the issue is not addressed, Illinois may continue to lose residents, which could impact the state's economic growth and tax base. The shortage also affects the ability of families to find affordable housing, potentially leading to increased homelessness and economic disparity. Addressing the regulatory barriers to housing development could help alleviate these issues and make Illinois a more attractive place to live and work.
What's Next?
Lawmakers in Illinois are being urged to focus on supply-side reforms in the upcoming legislative session. This includes reducing regulatory barriers and delays in the permitting process to encourage the construction of more diverse housing options. If these reforms are implemented, it could lead to an increase in housing supply and a stabilization of prices. However, if no action is taken, the housing crisis may worsen, leading to further economic and social challenges for the state.
