Working to Enhance Housing Stability and Affordability

Solutions would increase missing middle housing, reform restrictive zoning measures and regulations and help first-time homebuyers

Illinois is facing a critical housing shortage, making homeownership less attainable and driving up rents across the state. At Illinois REALTORS®, we are committed to advocating for policies that expand housing options, reduce unnecessary costs, and promote fairness in housing regulations.

Illinois REALTORS Legislative Package

Elimination of zoning bans on accessory dwelling units

The bill, “Local Accessory Dwelling Unit Act,” is an example of a reasonable solution that balances the need to create more housing and ensure housing safety in a city or town. Accessory Dwelling Units (ADUs) represent a relatively easy option for cities and towns across the state to increase the available number of housing units.

And because of their size, they’re generally seen as a quick supply of “affordable” housing units. However, many municipalities ban the construction or use of these types of housing. HB 1813, sponsored by Rep. Bob Rita, provides that local zoning codes shall not prohibit ADUs outright but maintains a local municipality’s ability to enact reasonable restrictions on ADUs to ensure they remain safe.

Easing density restrictions in local zoning codes to create needed missing middle housing

Another example of a sensible solution identified by the Governor’s Committee and included in the initiative is captured by HB 1814, sponsored by Rep. Bob Rita, the “Missing Middle Housing Act.” The legislation doesn’t just tackle density head-on; it combats negative gentrification and the implicit segregation that can be caused by traditional zoning practices.

Local zoning ordinances can be used positively to bring effective order to the layout of towns and cities. However, because zoning involves limiting the ways in which real property in certain areas can be used, which means it is also an unfortunate tool to promote segregation and further discrimination. It’s estimated that in most major cities, zoning codes ban multi-family housing, apartments, townhouses and duplexes in over 70 percent of their residential areas. Single-family zoning provisions essentially act as density limitations, which obviously decrease the overall housing supply. Worst of all though, in the wake of legal prohibitions on redlining, single-family zoning codes have been used as a mechanism to promote negative gentrification, limiting construction to newer, more expensive homes or encouraging informal patterns in demographic relocation.

HB 1814 provides for moderate increases in neighborhood density, without dramatic increases in the cost of living – or positive gentrification (the type that does not displace current residents, redefine the character of neighborhoods, or cause surrounding property values to increase at an unhealthy pace). By allowing more housing types on larger lots, developers and builders can design middle housing to meet the needs of tomorrow’s home buyers, while reducing sprawl and costly land acquisition costs.

Create a homebuyer savings account program with tax benefits

Also, included in our initiative is SB 148, sponsored by Sen. Cristina Castro, the “Illinois Home Buyer Savings Accounts Act,” which will give first time homebuyers a leg up when saving for a new home. As housing supply across the state has continued to shrink and demand has increased, not only does housing instability increase, but the American Dream of homeownership becomes harder and harder to achieve. Those who have worked relentlessly to save for their first home often find themselves

unable to save enough to counter the ever-increasing prices of a home. SB 148 quite simply incentivizes and creates a tax advantage for saving for a home, allowing individuals and families to save up to $25,000 and $50,000, respectively, to put toward a down payment and closing costs.

Join Us in Shaping Illinois’ Housing Future

At Illinois REALTORS®, we believe that everyone deserves access to safe, stable, and affordable housing. The legislative solutions we’re advocating for this session would help expand housing choices, lower costs, and create a fairer system for homeowners, renters, and developers alike.

Your voice matters. By reaching out to your legislators, staying informed, and spreading the word, you can help drive real change in Illinois’ housing policies.

Together, we can address the housing crisis in Illinois.