Congress targets housing shortage with new legislation
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Illustration: Aïda Amer/Axios
Buying a home is getting harder in Chicago, and Congress is trying to address that.
Why it matters: Lawmakers say new legislation could encourage more housing construction at a time when many would-be buyers are struggling to find homes they can afford.
Context: Home prices in Chicago rose more than 5% year over year since 2010, and active for-sale listings fell by more than 20% between 2021 and 2025, according to a new housing report from Harvard.
- Fewer homes for sale at higher prices are squeezing out potential buyers, especially younger people.
The latest: The U.S. House passed the Road to Housing Act on Tuesday, which, among other measures, offers localities that build more housing a bigger piece of existing federal funding.
- The bill would also bar institutional investors from buying more than 350 single-family homes in an area, a limit President Trump supported, but allows investors to hold on to the homes they already own.
Yes, but: It doesn't address high mortgage rates and rising home prices, two of the biggest obstacles for ownership, Axios' Emily Peck reports.
Reality check: A home is usually the largest purchase most people will ever make. With inflation, high borrowing costs and economic uncertainty weighing on household budgets, many would-be buyers are delaying homeownership.
Zoom in: On the local level, city and state leaders are trying to carve a path to homeownership. Mayor Brandon Johnson announced the HomeGrown Purchase Assistance Program this month, a $21 million grant program to help with down payments and closing costs.
- The money comes from Johnson's $1.25 billion housing and economic development bond, approved by the City Council in 2024.
- Gov. JB Pritzker's BUILD plan would have allowed the construction of more multi-unit housing properties and would have expedited some zoning and permitting processes.
- The bill stalled in the spring legislative session, however.
Meanwhile, starter homes in North Shore's Kenilworth and Winnetka are worth more than $1 million, according to a new Zillow report. Yes, starter homes.
- Zillow defines this category as a home in the lowest third of home values in a given region.
- Chicago's average starter home is worth $223,332, while the national average is $198,649. Well below a million, still higher than in many other cities.