Guest post: Chicago has multiple crises that more housing could mitigate

Chicago currently faces a dire financial crisis that could leave the city with a $1.2 billion budget deficit in 2026 and a potentially higher deficit in 2027. One way the city can attempt to chip away at this deficit is by expanding access to affordable and abundant residential housing across the city. This article by Joshua Chodor focuses on the communities impacted by Chicago’s shortage of affordable residential housing, why more home choices will be needed and the potential strategies that can create housing abundance.

In his 1999 book Homeland Earth, French philosopher and sociologist Edgar Morin developed a term that would encapsulate the interconnectivity and complexity of modern crises across the world. Spurred by growing fears of global warming, resource depletion and environmental destruction leading to novel diseases, Morin defined his concerns through the term “polycrisis“. 

As Morin projected, today’s modern polycrisis is defined by the convergence of climate change, international migration and humanitarian crises, the increasing rise of authoritarian governments and misinformation driving civil and social unrest globally. To call Chicago’s myriad issues a polycrisis may diminish the word’s more complex meaning. However, when identifying Chicago’s critical issues – a budget crisis, a housing crisis, a cost of living crisis and the political target that the current presidential administration has set on the city – polycrisis emerges as a valid description of the situation.

Chicago must follow a common sense agenda that creates an abundance of housing at all price points in order to alleviate these intertwined crises.

Chicago is only now seeing positive population growth after years of decline, but the stagnant pace of development has left residents with few affordable home choices within the communities they live and work. Monthly rents are reaching new highs and continued inflation contributes to a cost of living crisis impacting everyone. Rising rents with a minimal volume of new unit development not only inhibits those seeking to move into Chicago from elsewhere, but also may price existing residents out. This cycle could potentially displace long-time Chicagoans without mitigating the severe housing shortage that currently exists. 

To make Chicago a more affordable place to live for its current and future residents – and untangle this polycrisis – the city must be laser-focused on creating housing abundance. Building more housing is directly linked to the migration of new residents into the city, specifically from political migration, climate migration and international migration

1. Political Migration

As Republican-led states legislate against LGBTQ+ rights, attack marginalized communities and dismantle abortion and women’s healthcare access, at-risk groups and individuals will increasingly seek refuge in “blue” areas that offer them the rights and dignities that they deserve everywhere. Governor J.B. Pritzker has ensured that Illinois remains safe and welcoming to those communities unfairly targeted by an arbitrary and capricious war against anything considered “woke” – a catch-all pejorative used as an insult toward those seeking social justice. Chicago – and Illinois as a whole – must show it supports individuals of all backgrounds by expanding opportunities for new housing. In addition, as some state public health services are refuting science-backed advancements in healthcare such as the removal of fluoride from drinking water, Chicago is in a prime position to benefit from a potential influx of red state transplants for reasons related to their health and welfare. 

2. Climate Migration

After years of residential growth, sun belt states face glaring climate concerns related to extreme heat and water access. Climate change is worsening storms, floods and hurricanes, and the current presidential administration has all but asserted that it does not see this as an issue. With extreme weather and the dismantling of NOAA, FEMA and other protective agencies, many areas of the country will increasingly become unlivable – at least, for those who don’t have the means to move elsewhere. Natural disasters have become more intense, potentially jeopardizing residents’ access to clean drinking water, a situation which will drive migration out of the most threatened areas. The Great Lakes region will, in all expectation, grow in population as a direct and indirect result of unstable weather in other regions. Chicagoland will be a primary destination as one of the largest markets that can sustain a sizable population influx. Without additional housing, the climate-based migration of wealthier families and individuals could price out existing marginalized communities from their homes; Chicago must be ready for this increase of potential new residents.

3. International & Humanitarian Migration

When discussing the topic of immigration, the conversation inevitably focuses on the southern border and the law enforcement actions which target and demonize those attempting to legally migrate into the country. A clear example of this is in Texas, where razor wire has been installed on floating buoys to dissuade migration, an inhumane strategy that has led to an increase in drowning-related deaths. Some states actively dehumanize immigrants through legislation meant to instill fear in already vulnerable communities. The consequences of this crisis in Illinois magnify a noticeable difference between policies in Chicagoland compared to the rest of the state. While Chicago has strengthened its “sanctuary” protections over recent months, more than a dozen Illinois counties enacted “non-sanctuary” laws or regulations designed to antagonize immigrant communities. It is clear why international migrants, if given the opportunity, would go to a place that offers them more protection compared to the cruelty that other locations seem to enjoy inflicting. This problem will remain pervasive and, until states no longer enact dehumanizing and cruel immigration-related laws, the Chicagoland region must create more affordable and safe housing options for vulnerable immigrant communities.

Chicago must prioritize expanding its housing supply and residential development in the city and surrounding areas in order to not only mitigate existing financial concerns, but also proactively prepare for an influx of new residents. Policies, both implicit (aldermanic prerogative) and explicit (segregationist zoning codes) have created a set of individual yet interconnected crises that have stymied housing growth, worsening Chicago’s budget shortfall while maintaining racial and ethnic divisions through the denial of critical new affordable housing options. This uncertainty will continue to leave residents – both current and prospective – stuck with fewer affordable and viable housing options. 

Chicago must address its intertwined issues holistically, as its current piecemeal approach has severely hindered the city’s ability to be a desirable and affordable place to call home. In a future post, I will identify short- and long-term actions and suggest solutions toward alleviating Chicago’s housing shortage, such as expanding the city’s accessory dwelling units (ADU) ordinance, allowing 4-flats by right, relieving parking mandates, and enacting a land value tax, among other ideas. 

Fortunately, a number of volunteer organizations are focusing on addressing Chicago’s housing shortage, such as Abundant Housing Illinois and Strong Towns Chicago. That these groups have grown drastically in size over the past year is a clear sign that city residents will no longer sit back and wait for City Hall to unravel the threads of Chicago’s polycrisis.  

Josh Chodor is a master’s student in the University of Illinois Chicago’s Urban Planning and Policy program as well as a member of Abundant Housing Illinois and Strong Towns Chicago.

Greenline Homes is building brand new houses with junior ADUs

Greenline Homes builds all-electric 1, 2, and 3 unit houses in Chicago’s South Side, and this year they’ve started building single-family houses with a “junior accessory dwelling unit” on the first floor. An accessory dwelling unit, or ADU, can mean a few things, but generally it means a smaller home within a house that has one or more dwelling units. In Chicago, this is most commonly done by adding an apartment in a basement space of a single-family house or a two-flat, and on the ground floor of an older courtyard building during a renovation that moves shared laundry from the ground floor to in-unit.

Over in Woodlawn, however, Greenline Homes has built what appears as a single-family house but has an apartment with one bedroom and one bathroom in the front half of the first floor. It occupies about one quarter of the houses’s overall floor area. In the rear half of the first floor is the primary unit’s kitchen, living and dining room, and a half bathroom. Upstairs, the space belongs all to the primary unit and has three bedrooms and two bathrooms.

Many Greenline Homes have previously been built as two-flats with a lower level full-floor apartment and an upper level duplexed apartment for the owner. The intention is that buyers have an immediate rental income opportunity, or a place for multigenerational living. Think having an adult child living nearby (on-site!) as they transition from college graduation to full time job or having their first child.

Floor plan for the house at 6537 S Rhodes Ave (view the sale listing on Redfin).

The house is for sale, and there are several others like it, so if you’d like a tour contact Wayne Beals. Here are similar ones under construction that will deliver this year:

Further reading: junior ADUs can also be lockoff units, where the smaller unit is connected to the primary unit via stairs or a locked door, but maintains its only exit to the outside.

ADUs in Chicago: it’s the 4-year anniversary of a 3-year pilot program

My prepared remarks spoken to the Chicago City Council’s Committee on Zoning, Landmarks, and Building Standards on May 21, 2025.

Hi, my name is Steven Vance, I’m a 34th ward resident and a member of Abundant Housing Illinois, a group whose members show up to advocate for approving new housing. I wanted to speak today to support the expansion of the city’s ADU pilot program into a permanent and citywide option. 

This month is the four year anniversary of the beginning of a three-year ADU pilot program. 

A year ago, in June, just after the three year anniversary, the department of housing fulfilled their obligation and presented their findings and recommendations. They recommended to expand it citywide. 

Two years ago, a year before the department’s recommendations, newly elected Alderprerson Lawson introduced an ordinance that would do just that. To my recollection, the zoning committee has substantially discussed that ordinance only once. 

During the last four years, nearly 400 ADU homes have been permitted by the Department of buildings, and hundreds of those homes have been built. Homeowners and other property owners have been able to build homes for their parents, friends, and as rental units to earn more household income. None of the ADUs are allowed to be used for Airbnb or other short term rentals. 

Chicago was recently recognized as a national leader…in rent increases. Allowing more homes, including in the form of accessory dwelling units, is a way to suppress the rate at which rents rise. In some cases, including this year in Austin, Texas, Minneapolis, and Denver, so many new homes were built that rents started falling. 

I urge the zoning committee to adopt an ordinance to allow ADUs citywide. Thank you. 

Brian and his wife built a coach house in 2023, pursuant to the ADU pilot program, so their newborn child’s grandma could live close to home and help babysit.

New nuclear would help Illinois keep up with energy demand

If you live in northern Illinois, your electricity supply is among the most reliable in the country, and you have nuclear power to thank for that. Unlike many other regions that struggle with grid stability, our northern Illinois benefits from a network of five nuclear power plants that provide a steady, dependable base load of electricity. If we want to maintain this advantage—and meet the growing demand for electricity—we need to build more nuclear power plants. (Illinois has a sixth nuclear power plant, but the Clinton generating station is in a different “subgrid”.)

ComEd commissioned a study in 2022 which showed that as more households transition to electric heating and driving (two changes among many others predicted and necessary to reduce greenhouse gas emissions) our grid will need additional capacity. Heat pumps and electrified buildings are great for reducing our dependence on fossil fuels, but a steady, always-on power source – one that doesn’t disappear at sunset, and one that doesn’t emit any carbon – is necessary and expected. That’s where nuclear power comes in, which has been working for Illinoisans for the last 65 years. 

A group of nuclear engineers and advocates tours the Byron Generating Station in Byron, Illinois (2023, Michael McLean).

The study, written by Energy and Environmental Economics, says, “as a result of electrification for buildings, industry, and transportation, statewide electricity demand grows by 89% and 127% in the Moderate Electrification and High Electrification scenarios, respectively.”

Currently, Illinois law bans new nuclear power plants of the types that already exist here. In a silly way, Illinois law allows nuclear power plants of a type that don’t actually exist. Thankfully, HB 3604 is a bill in the Illinois House that was passed by committee last week that would repeal the ban on existing nuclear power plant types, allowing new ones – including their updated versions – to be built. 

SB 1527 is the equivalent in the Illinois Senate and while it didn’t get approved by a committee, its deadline was extended to April 4. Bill sponsor Illinois State Senator Sue Rezin coauthored this op-ed in Crain’s, writing, “In recent years, experts have warned that Illinois is on track to shift from a net exporter to a net importer of energy, making us dependent on neighboring states for our power demands. Meanwhile, states like Georgia, Tennessee, and Wyoming are advancing nuclear projects while Illinois remains stuck in the past.

PJM is the grid price manager for northern Illinois, including Chicago, and the PJM region reaches from here to Jersey Shore. This means that demand for electricity anywhere in the PJM region affects Chicago, and generation capacity and reliability in northern Illinois can affect prices in Newark. 

Several times a year PJM holds an electricity pricing auction in which distributors – like ComEd – and other high-need consumers – like data center operators – indicate, by bidding, how much electricity they believe they’ll require over the next time period. Generation companies – like Exelon – use this pricing auction to determine which plants they’ll keep running to supply electricity at those prices (different plants and energy sources have different operating costs). 

Nuclear power has an unmatched ability to generate massive amounts of electricity without greenhouse gas emissions. It’s a good complement to other carbon-free generation like wind and solar, ensuring that even on a still or cloudy day, their intermittency doesn’t affect keeping lights, heating, and the wifi, on.

Did you know that Illinois is the state with the third-highest amount of carbon-free electricity?

In fact, PJM rates nuclear power’s Effective Load Carrying Capability (ELCC) at 95 percent, the highest of all generation and storage types, even higher than batteries (which may not be charged when they’re needed, or could be depleted in the cold). Another way to understand ELCC is that the number is a prediction that a generation source will not have a “loss of load” event in any given hour. PJM expects that nuclear power plants will operate 8,322 hours each year and sun-tracking solar panel farms to provide electricity 1,226 hours each year.

Illinois, and whichever power markets it’s part of now (PJM) or in the future, needs more nuclear energy. Next year, rate payers – electricity consumers, you and me – can expect to pay higher rates per kWh because other buyers are coming into the market and willing to pay higher rates for the most reliable sources. Specifically, data center operators want access to nuclear power. One piece of good news is that the Palisades nuclear plant in Michigan will be restarting within a few years, and that source will bolster the supply in the MISO1 region, next door.

Last month, WSPY interviewed State Representative Harry Benton, a cosponsor of HB3604, reporting, “Benton says nuclear energy could help provide power to data centers across the state without a significant impact to other users on the power grid.”

Alan Medsker is a nuclear energy advocate I met the last time I went to Springfield to lobby (with a lowercase “L”) for housing abundance. He testified at the House committee this month to raise awareness about rising prices due to rising demand:

PJM and MISO face a crisis of surging load growth and a simultaneous retirement of many reliable sources of power. This confluence of events will soon cause large rate hikes on ratepayers across the state. Together, the General Assembly and Governor’s office have worked hard to attract new businesses to our state, especially data centers.

Data centers bring with them large 24/7 energy demands. For this reason, tech giants like Google, Microsoft, Amazon and Meta are considering all nuclear reactor design options to meet their energy requirements, and they are going to make sure they can get the power they need, when planning to build. Several of them are already partnering with nuclear reactor developers. If we restrict their options, they will almost certainly look elsewhere – there are plenty of other states that welcome nuclear energy developers, and some are even providing incentives.

Nuclear power plants’ high electricity generation capacity supports a reliable grid of delivery to the home and some price stability that prevents the kind of energy price spikes seen in areas that rely too much on oil and natural gas. In the 2024 “capacity obligation” auction for energy delivery in 2025-2026, PJM announced “capacity prices for the 2025/26 delivery year soared to $269.92/MW-day, up from $28.92/MW-day in the last auction”. Nuclear power accounted for only 21 percent of energy capacity provided by generators in that auction while gas accounted for 48 percent.

“The spike in capacity prices was driven by power plant retirements, increased load, and new market rules that aim to better reflect risks from extreme weather — coupled with new resource accreditation metrics that are designed to reflect how much capacity a resource delivers during system stresses.”, Utility Dive reported. The nine times increase may not be fully reflected on consumers’ bills. 

The alternative of having more power from non-nuclear sources is a future where electricity providers struggle to meet demand and return to using more fossil fuels. The U.S. Energy Information Administration predicts coal-burning will still occur in 2050!

That’s not a future we should accept. Solar and wind are being installed faster these days, providing more of the energy mix, but they and the requisite new transmission and storage infrastructure are decades away – at least – from potentially taking over the responsibilities that nuclear and gas have been taking care of since the 1960s.

Illinois has the workforce, expertise, and supply chain to expand nuclear power and accommodate rising demand and temper rising prices. We should take advantage of it by re-legalizing nuclear power plants in the state.

  1. MISO is the Midcontinent Independent System Operator, another regional grid price manager like PJM. ↩︎

Chicago home builder: Parking mandates limit the number of dwelling units we can build

Chloe G, a co-lead of Strong Towns Chicago, asked this question at the 2-to-4 flats panel that I moderated earlier this month:

“How do parking mandates affect your businesses?”

“It really just limits the amount of units we can do”, Nick Serra answered.

Learn about reform efforts in Chicago to drop costly parking mandates that raise the cost of housing.

Nick, a small local homebuilder, starts to describe how the city’s parking mandates limit how much housing he can build. Watch the full panel video.