Illinois state lawmakers took up housing affordability last year. The results underwhelmed. Now, Gov. J.B. Pritzker is pushing to put housing at the center of Illinois’ broader affordability agenda.
“The problem is clear – rent is too high and home ownership is too far out of reach,” Pritzker said in his State of the State address on Wednesday. “We are not building enough homes fast enough.”
The governor’s answer is a new Building Up Illinois Developments, or BUILD, plan, pitched as a sweeping statewide push to lower housing costs by making it easier, faster and cheaper to build. A key piece is legislation that would override select local zoning limits by legalizing “family-friendly” housing types such as duplexes, triplexes, four-flats and accessory dwelling units in residential areas across the state.
Pritzker’s proposal would scrap single-family zoning for lots larger than 2,500 square feet. The governor’s agenda sets in motion a path pursued by other governors and state legislatures that have moved to address housing affordability. Among them, Colorado, Washington, Texas, Florida and California have made some degree of progress. In neighboring Indiana, lawmakers have proposed housing reforms to preempt local zoning and spur new residential construction.
Widely considered a Democratic presidential hopeful, Pritzker also joins other potential contenders in elevating housing. Pennsylvania Gov. Josh Shapiro proposed a major zoning reform effort earlier this month, and California Gov. Gavin Newsom has signed multiple housing reforms into law over the past several years.
Support and opposition to the plan
Illinois REALTORS, the state’s largest real estate trade group, quickly applauded Pritzker’s embrace of “missing middle” housing.
“For the past six years, our members have been the leading voice at the Capitol and in local city and village halls advocating for common-sense solutions to our state’s housing crisis,” Illinois REALTORS CEO Jeff Baker said in a statement.
However, as in other states, Pritzker’s plan faces resistance from the organization that represents local governments.
“Zoning and land use decisions are best made locally by the leaders elected in those communities,” Brad Cole, the Illinois Municipal League’s CEO, said in a statement. “This is another example of where one-size-fits-all statewide mandates are unworkable and will damage communities.”
Illinois housing affordability beyond scrapping parking mandates
A University of Illinois research group, the Project for Middle Class Renewal, reported in 2024 that the state has an existing shortage of 142,000 units and must add about 227,000 homes by 2030 to meet demand.
Late last year, the chief legislative housing push produced a law dubbed “The People Over Parking Act,” which curbed parking mandates for new construction near public transit. That measure was built on a zoning reform Chicago enacted earlier, making it one of the largest U.S. cities to eliminate such mandates near transit.
Pritzker noted the parking mandates in his address. The state law takes effect in June.
“The great news is we have developers ready to build homes and Illinoisans who need them, but it doesn’t get done because of these regulations,” he said.
The BUILD proposal includes a tiered approach to the number of allowable units on lots. A developer could build up to four units on lots from 2,500 square feet to 5,000 square feet, six units on lots from 5,000 square feet to 7,500 square feet, and eight units on lots larger than 7,500 square feet.
Alongside the land-use push, Pritzker proposed $253.7 million in general funds for the Home Illinois initiative, which coordinates homelessness and housing insecurity programs. The plan includes $81.5 million for shelters and other services for unhoused residents, $62.3 million for supportive housing and prevention services, $50 million for court-based rental assistance, $42 million for emergency and transitional housing, and $25 million for rapid rehousing.
Housing agenda meets fiscal politics
Pritzker framed his housing agenda as part of a broader effort to help Illinois residents cope with inflation and cost-of-living challenges, linking the cost of shelter to rising prices for groceries, electricity and other essentials.
Now that the governor’s BUILD plan, statewide zoning standards and expanded homelessness funding are all on the high priorities list, the coming legislative session will test whether the Democratic governor can turn an ambitious housing platform into concrete changes in how and where Illinois builds.
Success depends on how well Pritzker and his team navigate opposition from local governments and Republicans demanding tighter state fiscal control.
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