Axios Event: Chicago leaders are looking local for housing crisis solution

CHICAGO – As the nation struggles with affordable housing shortages, uncertainty in the federal government is leading cities to double down on the search for policy solutions at the local level.

Why it matters: Record-high housing costs have put homeownership out of reach for many and worsened existing racial wealth gaps in Chicago.

Axios Chicago's Monica Eng, Justin Kaufmann and Carrie Shepherd spoke with Rep. Jonathan Jackson (D-Ill.), Chicago Mayor Brandon Johnson and Andrea Sáenz, president and CEO of The Chicago Community Trust, at the event, which was sponsored by JPMorganChase.

The big picture: Chicago is "absolutely" in an affordable housing crisis, Jackson said.

What they're saying: "[H]omes and the equity that you can build over time in your home is the single biggest contributor to family wealth across the United States," Sáenz said.

• "In 1968, when the Fair Housing Act passed, the rates of homeownership in this country for Black Americans were pretty close to what they still are today," she added.
• Sáenz cited a study finding disparities in median wealth between families of different races in Chicago.

State of play: When asked if there's a will in Congress to address the housing problem, Jackson said "no, not at all."

• Jackson said that he and other members of Congress have also struggled to get in touch with agency leaders.
• "We went to HUD to try to deliver a letter to the director of HUD, we were turned back and stopped by police from entering into the HUD office building. So we're not able to even talk with many of the directors or secretaries," he said.

An uncertain future for federal funding has led local policymakers to take matters into their own hands, the speakers said.

• "Government needs to make some sort of assistance … that's what my definition of good government is. The government helps people when they cannot help themselves," Jackson said.
• "[B]y having local solutions that do not rely upon the federal government, it allows for that bold and audacious initiative of mine to repopulate, particularly the West and South sides of the city of Chicago, with working people," Johnson said.
• "To be clear, the federal funding that was available for the kinds of innovative solutions that we need was already inadequate. And now, with recent news about cuts to HUD programs … this is just two months in, so are we concerned? Yes," Sáenz said.

What's next: Johnson shared plans for a $1.25 billion bond investment in economic and workforce development and affordable housing, which he called "the largest investment in the history of Chicago."

• Regulatory challenges that have slowed the building of new housing also need to be addressed, the speakers agreed.
• Cut the Tape and the Green Social Housing Ordinance, which is currently before the city council, are two local initiatives Johnson hopes will help Chicago build housing faster.

Content from the sponsored segment:

In a View From the Top conversation, Michelle Herrick, JPMorganChase Commercial Banking head of commercial real estate, said that finding solutions to the housing shortage will require a collaborative approach.

• "I would say we are not unique in that this is a very tough challenge for a lot of communities to solve. … We see the gap that is continuing to increase between the existing supply of affordable housing and the demand for those units. By local estimates, Chicago needs a little bit over 100,000 additional units," Herrick said.
• "From our seat, it is so vital to be supporting federal, state, local policies. This is a solution that takes everyone coming together."