Overview: Chicago’s Housing Crisis Project 2025

The Green Social Housing ordinance, proposed by Mayor Brandon Johnson in early 2025, represents a new model for Chicago that differs from traditional public housing in its management, sustainability goals, and financial structure.

Key differences between green social housing and traditional public housing include:

• Management and Public Control: Unlike traditional public housing managed by the Chicago Housing Authority (CHA)—which has historically razed thousands of units and left hundreds of acres of land vacant—green social housing aims for permanent city control. Under this model, the city creates a nonprofit developer to build and manage the apartments, specifically to avoid reliance on private developers.

• Mixed-Income Stability: While traditional public housing was often replaced by mixed-income towers that sometimes failed to yield the promised affordable units, green social housing is designed to be permanently mixed-income. This model mandates that at least 30% of the apartments must always remain affordable for low-income families, while others are rented at market rates to ensure stability.

• Funding and the Profit Motive: Green social housing is supported by a $135 million loan fund. This funding is intended to eliminate the need for private investors who seek a profit, which has been a barrier in the private market where construction and maintenance costs often exceed what low-income renters can pay. In contrast, sources note that traditional public housing has suffered from systemic disinvestment and that other public funds, like Tax Increment Financing (TIF), have sometimes been rerouted to luxury developments rather than affordable projects.

• Environmental Sustainability: As the name suggests, green social housing prioritizes eco-friendly construction. These buildings are designed to use green energy to reduce pollution and, crucially, to lower the long-term costs of operating the housing. Traditional public housing described in the sources is often characterized by its dilapidated state resulting from decades of neglect and redlining.

Analogy for Understanding the Difference: Traditional public housing is like a government-run car pool that eventually fell into disrepair and was sold off to private companies who stopped offering rides to those who needed them most. Green social housing is like the city building its own fleet of electric buses: it owns the vehicles, uses renewable energy to keep gas costs low, and ensures that a specific number of seats are always reserved for low-income riders, regardless of how much others pay for their tickets.

Audio

Reporter Alexis Schofield talks about reporting on the Chicago housing crisis project.

FAQ: Chicago’s Affordable Housing Crisis

What is the current state of affordable housing in Chicago?

Chicago is currently facing a significant housing crisis characterized by a shortage of over 119,000 to 120,000 affordable units. More than half of all renters in the city are considered “cost-burdened,” meaning they spend more than 30% of their income on rent and utilities. For some low-income households, this figure can reach 50% or more.

Why isn’t the private market building more affordable housing?

According to housing experts, the private market is not designed to create housing for those with the lowest incomes. The rent these households can afford—often between $600 and $700 a month—is insufficient to cover the costs of construction, maintenance, and taxes. Consequently, developers prioritize building for middle- and upper-income earners to ensure a profit, leaving a massive gap for low-income residents.

How much does a worker need to earn to afford a modest apartment in Chicago?

As of 2024, a full-time worker in Chicago needs to earn $32.96perhour\ast \ast toafforda\; modestone-bedroom\; apartment$$.Foranindividualearningthestateminimumwageof\ast \ast$14, this would require working 1.8 full-time jobs or approximately 71 hours a week.

What historical factors have contributed to the current crisis?

Chicago has a “deeply rooted history of segregation” driven by practices like redlining, where federal policies and banks denied mortgages to residents in predominantly Black and Brown neighborhoods. This created a cycle of systemic disinvestment and dilapidated housing. A 2018 study found that 74% of neighborhoods once labeled “hazardous” by the government remain low-income today.

What is “Green Social Housing,” and how does it help?

Introduced by Mayor Brandon Johnson in early 2025, the Green Social Housing ordinance aims to create permanent housing controlled by the city rather than private developers.

Key features include:

• Mixed-Income Developments: At least 30% of apartments will always remain affordable.

• Public Control: The city creates a nonprofit developer to manage the units, funded by a $135 million loan fund to eliminate the need for profit-seeking private investors.

• Sustainability: Buildings will use green energy to reduce pollution and lower operational costs.

What are Additional Dwelling Units (ADUs)?

The ADU Ordinance, approved in 2020, allows homeowners to add “basement apartments, backyard houses, coach houses, or in-law apartments” to existing residential properties to increase housing supply. However, the program has faced challenges, including restrictive zoning, high permit fees, and long wait times, resulting in most permits being granted in wealthier North and Northwest Side neighborhoods rather than the South and West sides where they are needed most.

What is “NIMBYism,” and how does it impact housing?

NIMBYism (“Not In My Back Yard”) refers to local resistance from residents who oppose affordable housing developments in their neighborhoods. Opponents often cite concerns regarding property values, traffic, or overcrowding, though experts suggest these views are sometimes based on discrimination or misguided perceptions of who will live in the housing. Such resistance has successfully halted projects in areas like Jefferson Park and North Center.

How does the housing crisis affect Chicago’s workforce?

Because rent in areas near major employment hubs (like University Village) can average nearly $2,800, many workers are forced to live far from their jobs. This leads to:

• Long Commutes: Some residents commute over an hour each way by bus and train.

• Health Impacts: Daily long-distance commuting is linked to decreased sleep quality, higher stress, and poor mental health.

• Financial Strain: Commuters often spend more on convenience costs, like takeout food, due to exhaustion from long travel times.

What is being done to stop displacement in gentrifying neighborhoods?

In neighborhoods like Humboldt Park and Logan Square, the city has implemented the Northwest Side Preservation Ordinance. This policy:

• Tenant Opportunity to Purchase: The 606 District Pilot Program gives tenants the “right of first refusal” to buy their building if it goes up for sale.

• New Construction: Developments like “The Ave” in Humboldt Park provide units reserved for families earning between 20% and 60% of the area’s median income.

Analogy for Understanding Market Failure: Think of the housing market like a high-end car dealership. If it costs the dealership $20,000 to build even the simplest car, they cannot sell cars for $5,000 and stay in business. In Chicago, the “cost” to build and run an apartment is higher than what many residents can afford to “pay,” leaving those residents with no way to buy into the market without outside help or a subsidy.