Chicago Needs to Legalize Citywide Granny Flats Now: A Solution to Housing Inventory Issues

Strategic Insights -

Chicago faces a pressing housing inventory problem, with the number of homes available decreasing by 58% over the last decade, and prices rising by 47% in the last 10 years. Meanwhile, the average rent for a one-bedroom unit has seen a staggering 98% jump. To alleviate this pressure, Chicago REALTORS Erika Villegas and Lutalo McGee urge the city to legalize accessory dwelling units (ADUs), also known as granny flats, citywide. ADUs offer a straightforward solution to expand housing options within existing lots, providing a range of social and economic benefits.

Key Takeaways:

  • The housing supply in Chicago decreased by 58% over the last decade, from 10,024 homes in June 2015 to 4,200 homes in June 2025.
  • The median sales price for homes in Chicago has increased by 47% in the last 10 years, from $242,500 in 2014 to nearly $355,625 as of the end of 2024.
  • The average rent for a one-bedroom unit has risen by 98% over the same period, from approximately $991 to nearly $1,962.
  • ADUs offer a solution to the housing supply shortage, providing a range of social and economic benefits, including allowing seniors to age in place, young people to live near family, and homeowners to earn income.
  • The city's pilot program for ADUs has authorized about 400 legal ADUs, but this program only covers a quarter of the city.
  • By 2030, members of the baby boomer generation will be ages 65 to 80, and aging in place will be a priority for policymakers.
  • ADUs can also protect tenants, improve safety standards, and bring new revenue into the city, with implementation requiring coordinated efforts with county and state agencies.
  • Critics' concerns about "neighborhood character" are unfounded, as ADUs represent a gentler form of density that adds housing supply without tearing down homes or changing street views.

Statistics:

  • 58% drop in housing inventory over the last decade, from 10,024 homes in June 2015 to 4,200 homes in June 2025.
  • 47% increase in the median sales price for homes in Chicago over the last 10 years, from $242,500 in 2014 to nearly $355,625 as of the end of 2024.
  • 98% jump in the average rent for a one-bedroom unit over the same period, from approximately $991 to nearly $1,962.
  • 400 legal ADUs authorized by the city's pilot program.
  • 20% of the population that will be members of the baby boomer generation by 2030, ages 65 to 80.

Sources:

  • Chicago Tribune Op-Ed by Erika Villegas and Lutalo McGee, "Real estate brokers: Chicago needs to legalize citywide granny flats now"
  • Illinois Association of REALTORS
  • Chicago City Council
  • County and state agencies (referenced in the text, but exact titles and names not specified)