BUILD: The First Layer in Fixing Illinois Housing
Originally published in a REALTOR® Association of Fox Valley newsletter. Republished here as part of Neeley Erickson’s Policy Commentary series.
If housing policy were an onion, most of us would prefer not to peel it. It makes your eyes water. It is layered. It is complicated. It is easier to set it on the counter and hope someone else handles it.
The Build Up Illinois Development Plan, known as BUILD, is Illinois picking up the knife.
The comprehensive housing proposal includes several long-standing priorities championed by Illinois REALTORS® that are now moving forward as part of a broader statewide strategy. The focus is straightforward. Illinois needs more housing. More supply stabilizes prices, supports job growth, and strengthens communities.
The legislation centers on expanding housing opportunities in practical ways. The gentle density proposal applies to future residential development and allows additional housing types in new projects. It does not rewrite existing neighborhoods or eliminate design standards. Local governments retain authority over form, setbacks, height, and aesthetics. What it does address is the ability to plan for duplexes, townhomes, and other missing middle housing that provides attainable options for working families. It creates statewide consistency, so builders are not forced to navigate a patchwork of conflicting regulations in every municipality.
Other elements focus on reducing unnecessary regulatory friction, modernizing permitting processes, and encouraging more predictable development review. Predictability matters. Builders and lenders need clarity to make projects pencil. When the rules vary dramatically from town to town, risk increases and production slows. A more consistent statewide framework helps lower uncertainty while still preserving local input on design and character.
BUILD also recognizes that supply reform alone is not enough. The proposal includes infrastructure support for local governments so communities can extend utilities, modernize systems, and prepare sites for housing development. Growth requires roads, water, sewer, and public investment to function responsibly. The plan also advances tools like a homebuyer savings program to help future homeowners prepare for down payments and closing costs. Expanding access to ownership and strengthening the development pipeline are complementary strategies, not competing ones. Housing production, infrastructure readiness, and pathways to ownership must move together if we want stable communities.
Housing is economic development. Economic development creates jobs. Jobs create thriving communities. Every employer looking to expand asks the same question. Where will our workforce live. When housing supply is constrained, companies hesitate, wages stretch, and families struggle to find stable options near employment centers. Stability in housing is stability in the broader economy.
This plan is not a silver bullet. Housing challenges are multifaceted. Labor shortages limit how quickly units can be built. Material costs remain elevated. Infrastructure investments lag in many regions. Local zoning codes in some communities were written for a different era. Production will not double overnight simply because legislation passes. A shortage of developers in certain markets also means projects will take time to come online.
Starting matters. Waiting guarantees that affordability worsens. When supply remains constrained, frustration grows. That frustration often turns into calls for reactive policies that address symptoms rather than root causes. The ripple effects of those policies can create broader market distortions that ultimately harm the very households they aim to help.
BUILD represents an intentional first step. It acknowledges that housing policy must be addressed at a structural level while still respecting local authority over how communities look and function. It encourages local governments to prioritize housing within comprehensive plans and development strategies. It signals that Illinois understands the connection between housing production and long-term economic vitality.
Peeling back the onion is not glamorous work. It requires data, collaboration, and patience. It requires aligning state leadership with local implementation. It requires acknowledging that supply is foundational to affordability.
If Illinois is serious about opportunity, workforce growth, and community stability, housing must be part of the equation. BUILD does not solve everything. It does move us forward. In a housing environment defined by rising costs and limited inventory, forward is a direction worth taking.
It’s Time to Encourage Elected Officials to Reduce Property Taxes
Originally published in the Rockford Register Star, August 27, 2022. Republished here as part of Neeley Erickson’s Policy Commentary series.
Read original publication →https://www.rrstar.com/story/opinion/columns/2022/08/27/its-time-to-encourage-elected-officials-to-reduce-property-taxes/65458476007/
There needs to be a concerted effort to lessen, not increase, the tax burden facing the families in our communities —now more than ever before.
That is why we REALTORS®, who advocate on the behalf of home and business owners, encourage elected officials to consider reducing or keeping their levy flat.
All of us in this community are experiencing significant increases in everything we purchase. It is not just consumer goods where everyone in our community is feeling the impact.
According to the National Association of REALTORS® housing inflation is the highest in over 40-years. Monthly mortgage payment for buyers has increased 50% in the last year. Renters, taxpayers too, who move up the housing ladder to homeownership have seen a 6% increase from last year.
As all costs increase, it becomes much harder to maintain or save to achieve the American dream of homeownership. Owning a home is undeniable and one of the easiest and sometimes the only way for individuals to build equity and wealth.
But the impact of property tax increases can become an overwhelming burden.
Property taxes are one of the largest barriers to housing affordability and can put many first-time homebuyers out of reach from obtaining a mortgage.
The quadrennial reassessment is approaching, which is a period where the assessor will closely review each property’s value. That could lead to a natural increase in the value of our homes and any further increases in our tax burden at a time such as this, when inflation is spiraling out of control, would hurt our community.
As REALTORS®, we recognize the significance of the services local governments deliver through the taxes we pay. But we must commit to ensuring the affordability of our communities in order to prosper.
Therefore, the Northwest Illinois Alliance of REALTORS® strongly encourages local elected officials to reduce or keep their property tax levy flat to maintain the quality of life we all enjoy.
Local Governments Should Invest in Homeownership
Originally published in the Rockford Register Star, December 2021. Republished here as part of Neeley Erickson’s Policy Commentary series.
Read original publication →
https://www.rrstar.com/story/opinion/2021/12/11/local-governments-should-invest-in-homeownership/8860728002/
“Record Low Inventory! Record High Home Prices!” These are the headlines readers are seeing.
Lost in the news, however, is how rising home prices are creating a housing affordability crisis in Boone, Winnebago, and Ogle Counties.
While the Rock River Valley Region has affordable home prices compared to some other parts of the state, the challenge remains the growing gap between wages and housing attainability.
The rolling average price of a home sold in Winnebago, Boone, and Ogle Counties is $179,000, 15.1% more than last October’s average of $155,000.
A buyer with an average median income of $55,000 seeking to purchase $179,000 home including a 5% down payment, taxes, and insurance expenses puts a buyer at a closing debt ratio of 31%. Many mortgage lenders are comfortable with a housing debt range of 25- 28%.
What’s the good news? We have an incredible opportunity to unlock the American Dream of homeownership for local families.
The American Rescue Plan Act, passed earlier this year, appropriates billions of dollars directly to local communities to invest in solutions towards housing affordability such as down-payment assistance in the form of grants or forgivable loans, construction of new homes, and fixing up vacant and blighted properties.
Realtors encourage local governments to consider dedicating portions of American Rescue Act funds to promote homeownership. Investment in homeownership matters.
In 2020, the real estate industry accounted for $143.5 billion in Illinois gross state product and the National Association of REALTORS calculated that the average home sale in Illinois generates almost $70,000 in local economic impact.
Homeownership increases assessed values of properties, expands the tax base, and better serves the housing needs of residents within our communities.