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Housing

Battle to Legalize Accessory Dwelling Units Heats Up in Chicago

Strategic Insights

— 1 min read

The Illinois Association of REALTORS(R) is intensifying its efforts to legalize Accessory Dwelling Units (ADUs) throughout Chicago, amid opposition from some aldermen who fear it will undermine their "aldermanic prerogative" to block small-scale developments. The push to repeal the ban on ADUs in Chicago comes as the city grapples with a severe housing shortage and skyrocketing home prices. REALTORS(R) are supporting Alderman Bennett Lawson's ordinance, which has been discussed and negotiated for years, and are urging the full Chicago City Council to pass it at its September 25 meeting.

Key Takeaways:

  • The Illinois Association of REALTORS(R) is advocating for the legalization of Accessory Dwelling Units (ADUs) in Chicago, which could help address the city's severe housing shortage.
  • REALTORS(R) have been pushing for the repeal of the ban on ADUs in Chicago since the 1950s, citing the need for creative solutions to the city's housing crisis.
  • The current city ordinance banning ADUs has been in place since the 1950s, making it difficult for homeowners to build additional units on their properties, including attic and garden apartments, "granny flats," and coach houses.
  • REALTORS(R) argue that ADUs can help "gently" add housing stock to the city, reducing home prices, but opponents claim it can destroy the "character" of neighborhoods.
  • The proposed ordinance supported by REALTORS(R) is designed to "allow for a more streamlined and less burdensome process for homeowners to develop ADUs on their properties."
  • REALTORS(R) are also concerned that a new "compromise" ordinance has been proposed, which they argue will effectively kill ADUs in Chicago by imposing stricter regulations.

Statistics:

  • Up to 40% of Chicago City Council members have signed onto the proposed "compromise" ordinance.
  • The National Association of REALTORS(R) estimates that the U.S. has an "underbuilding gap" of 5.5 million housing units over the last 20 years.
  • This translates to a $4.4 trillion investment deficit in housing.
  • Data shows significant housing inventory and affordability decreases in Chicago since 2008.

Sources:

  • Illinois Association of REALTORS(R)
  • Alderman Bennett Lawson
  • National Association of REALTORS(R)

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