U.S. housing for sale is nearly back to pre-pandemic numbers, but Illinois is still way behind.
Illinois significantly lags the country in getting back to home listing levels from before the pandemic.
The state has only 38% of the active listings it did before the pandemic, according to Realtor.com Economic Research. Nationwide, housing for sale has recovered to 92% of pre-pandemic levels.
In the Chicago area, listings are down 54% from 2019, according to Zillow.
Nine Illinois metro areas have suffered even larger declines. Bloomington saw the steepest drop, with inventory down 69% from 2019.
Illinois home values have risen 49% since July 2019, similar to the rise of about 51% nationwide, according to Zillow’s Home Value Index.
An Illinois home valued at $201,231 in 2019 is now worth $299,900, with the increase much more dramatic in some communities.
De Soto, in Southern Illinois, and Chicago south suburb Ford Heights have seen home prices more than double since 2019.
To relieve that pressure, the state needs more homes. Adding them requires communities to reconsider rules that make new housing difficult or expensive to build.
While state lawmakers failed to advance housing supply reforms this year, a recent move in Rockford shows that municipalities don’t have to wait on Springfield.
The Rockford City Council approved zoning changes to allow more multifamily housing, eliminate enclosed-garage mandates, reduce approval hurdles for larger developments and allow three- and four-unit buildings on vacant lots. The reforms are part of a 10-year effort to create and preserve 6,000 to 9,000 housing units in the city, where the average home price has almost doubled since the pandemic.
Restrictive zoning, lengthy approval processes and costly development requirements can make projects more expensive or prevent them from being built at all. When fewer homes make it to market, Illinois families must compete for an already limited supply.
Communities can expand their housing options by allowing more density near transit, permitting homes on smaller lots and making it easier to build accessory dwelling units.
Streamlining permitting and eliminating unnecessary parking or design requirements can further reduce the cost and uncertainty involved in adding housing.
Building more homes addresses only part of the affordability problem, though.
Illinois homeowners contend with the nation’s highest property taxes. Even if more housing slowed price growth and gave buyers more options, heavy property tax bills can put homeownership out of reach and make it harder for existing owners to stay in their homes.
Making housing more affordable in Illinois requires progress on both fronts: allowing the market to produce more homes and reducing the property tax burden.
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