Key Takeaways
- Chicago has eliminated parking mandates for new developments near public transit to encourage affordable housing growth.
- The move aims to address a shortage of 119,000 affordable housing units in the city amidst rising rental costs.
- Mayor Brandon Johnson emphasizes the need to remove construction barriers, including parking requirements, to enhance housing accessibility.
New Policy to Boost Affordable Housing
Chicago has removed parking mandates for new construction and rehabilitation projects situated within a half-mile of a Chicago Transit Authority (CTA) rail station, or 1,320 feet from a high-volume bus line. This policy revision, affecting all zoning districts except downtown areas, aims to stimulate affordable housing development in response to increasing housing costs.
Mayor Brandon Johnson highlighted the necessity of exploring all possible strategies to enhance housing supply and reduce rental prices. He noted that parking requirements have historically hindered efficient construction processes. In Chicago, with the highest year-over-year rent increase among U.S. cities, prices climbed 6.1% in July alone, as reported by Zillow’s Observed Rent Index. In contrast, the inventory of homes for sale dropped by 2.1% year-over-year.
The city faces a critical shortage of affordable housing, lacking 119,000 units. More than half of Chicago’s residents are considered cost-burdened, spending over 30% of their income on rent and utilities. Johnson identified governmental restrictions as a key factor contributing to the slow pace of housing development, prompting his “Cut The Tape” initiative, which seeks to remove impediments to construction.
Previously, parking minimums for residential developments varied from 0.1 to 2 spaces per unit based on the housing type, leading to increased construction costs. A 100-unit building located near a CTA station can incur up to $825,000 in unnecessary parking costs, as indicated in a joint statement from Johnson and Alderman Daniel La Spata.
Research confirms that stringent parking requirements can negatively affect housing affordability, encouraging cities like Minneapolis, San Francisco, Austin, San Jose, and Portland to reduce such mandates in the last decade to combat housing shortages. This latest move by Chicago aligns with these broader trends towards eliminating barriers that inflate housing costs and hamper development.
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