By Leslie Quintana
@redlineproject
Finding a home in Chicago has become a challenge as homebuyers are running out of options or can’t adjust to rising costs.
Illinois housing has increased by more than 50% in the past seven years, bringing the average starting price to a whopping $290,210. In 2019, the average house cost was only around $191,531.
The chart below indicates the count of active listings in Cook County. These listings consist of single-family and condo/townhouse style homes for the given market at that time. Listings that were considered “pending” were not included.
As seen by the data, the spring and summer months tend to show higher listing rates. This is because more people look for housing around these times (the better weather) or as many take advantage of holiday and summer breaks to move out (opening up other listings).
Illinois has seen some of the worst impacts on active listings in the country. According to Realtor.com, only 32% of the listings it had before the pandemic are still standing today. The graphic provides a clear visual of how listings are not lasting.
The answer to this problem isn’t as building more houses. The city has many restrictions impeding people from building new homes. Certain areas even have zoning rules that block possible expansion, or it adds hefty costs.
This creates a domino effect. If there are fewer homes with the same number of buyers or more, prices will increase. Or in other words, supply and demand cause prices to increase.
On the other hand, this shortage can also be attributed to Illinois being tpaying high property taxes. So those looking to buy are then scared away by the money that’s going to be spent.
As a more drastic solution, the Chicago City Council members have passed an ordinance to remove parking requirements for areas near public transit. This would free up potential space for houses to be constructed. Doing this would kill two birds with one stone; no more paid parking and more houses.