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Illinois Policy Institute found that government regulations
account for nearly $70,000 of the $292,000 median home price in
the state.
Researcher Ravi Mishra said that is preventing new housing
construction and aggravating a housing shortage, leading to
higher prices and creating what is called “house burden.”
"That is when a household pays 30% or more of their annual
income on housing,” said Mishra.
Mishra said the problem is worse among Illinois’ poor because
over 81% of low-income households are “house burdened.”
In Chicago, the city ranked last among the country’s 10 most
populous metropolitan areas for new units approved. Its land use
restrictions also cut into supplies: 25% of the city restricts
residential housing development without special approval, and
only 21% is currently zoned for multi-family housing.
Taxes also contribute to high housing costs in the state.
Illinois has the second-highest property taxes in the country at
2.08%.
The Illinois Policy Institute offered solutions for
incentivizing more housing supply, including streamlining
housing permit processes, allowing more multi-family housing,
and easing regulations on lot sizes, parking minimums and
aesthetic requirements.
“It is prohibitively expensive to build housing in Illinois
thanks to burdensome regulations and zoning laws,” said Josh
Bandoch, head of policy at the Illinois Policy Institute. “Local
leaders must remove unnecessary restrictions and limits on new
housing units to successfully address this crisis. The plight of
housing affordability in Illinois will continue to worsen until
they do.”
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