Illinois Allocates $156 Million to Close 142,000 Unit Housing Gap

Illinois faces a shortage of approximately 142,000 housing units, according to the governor’s office. To address this deficit, the administration announced a $156 million investment on Thursday. The funds support the Building Up Illinois Developments initiative, or BUILD.

The BUILD package pairs this financial commitment with a series of legislative proposals. These measures aim to streamline approvals for affordable and missing middle housing. That category includes duplexes, triplexes, and accessory dwelling units. The plan also proposes reducing local zoning authority by imposing statewide requirements on communities.

Gov. JB Pritzker stated the action is necessary because supply remains low while interest rates stay high. He noted that prices are elevated and communities are feeling the pressure. "We're doing this because we need more housing. Supply is too low and interest rates aren't coming down right now. Prices are too high and people and communities are feeling the pain," he said.

The state projects a need for more than 225,000 new units over the next five years to meet growing demand. Most of the $156 million funding is already secured in the state’s 2027 budget. Kristin Faust, executive director of the Illinois Housing Development Authority, also voiced support for the initiative.

Legislators will debate the proposals during the November session. City and village leaders anticipate opposing the state-level zoning changes. They argue the new rules would preempt local control and alter neighborhood character. Similar legislation stalled during the spring session after facing resistance from local officials.