East Central Reporter

If Illinois residents have become used to one thing, it is the persistent push from political leaders for increased government intervention, even when past government policies have yielded unfortunate results. The focus now shifts to housing as a primary example.

The state faces a significant challenge with housing affordability. Statistics show that one-third of Illinois residents are "housing-burdened," meaning they allocate a considerable portion of their income to housing. Rental prices, according to Zillow, have risen by 35% since the onset of the COVID-19 pandemic, with an additional 5% increase predicted for this year. A stark 67% decline in the availability of homes for sale from 2019 to 2024 has further exacerbated rental costs.

In an effort to address these issues, Governor JB Pritzker issued an executive order last year, appointing a "director of housing solution" to collaborate with established agencies like the Illinois Housing Development Authority. This initiative aims to plan and implement housing strategies. However, criticism arises suggesting that overbearing government regulations and spending have deterred business in Illinois.

Over the past four years, inflation and interest rates have soared, complicating homeownership. Critics argue that both federal and state governments have engaged in excessive spending, which has compounded the existing housing crisis. Instead of addressing these failures, some state leaders look elsewhere for blame. Attorney General Kwame Raoul, mirroring sentiments from Springfield, joined a lawsuit initiated by the U.S. Department of Justice. The lawsuit targets landlords’ pricing software, alleging that it drives rent prices higher. Critics argue that such software merely reports existing market rates rather than influencing them directly.

In Illinois, algorithmic pricing is utilized for toll rates, fluctuating prices depending on demand. Similar models are adopted by companies like Lyft and Uber. Critics question why Illinois does not apply this logic uniformly across sectors, including housing.

The state's housing affordability dilemma is attributed not to algorithms but to a housing shortage caused by restrictive regulations that hamper construction. Newly introduced regulations like the Affordable Requirements Ordinance intend to demand developers designate affordable units, yet critics assert this has hindered development in high-demand areas, escalating costs across the city.

On the policy front, Chicago Mayor Brandon Johnson and the Chicago Department of Housing have proposed a new "Green Social Housing" ordinance. While this initiative emphasizes sustainability, roughly 20,000 people in Chicago remain unhoused, underscoring an urgent need for basic shelter over experimental projects.

Advocates for change suggest relaxing zoning restrictions and offering tax incentives for builders. They point to markets like Santa Barbara, California, and Austin, Texas, where similar measures helped lower housing prices post-pandemic. The same approach, they argue, could yield benefits for Illinois renters.

Taking steps to reduce government-imposed barriers could alleviate high rent costs more effectively than lawsuits over algorithmic rent pricing. Officials are urged to prioritize investment and market-based solutions, ensuring families across Illinois have access to affordable housing.

State Representative Chris Miller, representing Illinois' 101st District, emphasizes this approach, advocating for policy changes to encourage housing development.