Gov. JB Pritzker is pushing for statewide zoning changes to spark housing construction. The suite of provisions in the Building Up Illinois Developments [BUILD] legislation would remove local restrictions and allow more multifamily housing in areas currently limited to single-family homes.
Not everyone is jazzed about the proposal though. Municipalities have concerns about loss of local control. Some worry about changing neighborhood character. Others doubt whether it can really move the needle on housing construction.
The need for more housing in Illinois and across the nation is undisputed. A housing study from the U of I last year showed the state is about 142,000 units of housing short and would need to build 227,000 over the next five years to keep up with demand. That’s double pre-pandemic construction rates.
“Amid the construction supply chain challenges of the past six years, Illinois' housing inventory has rebounded slower than the national average. The number of home listings has dropped 64%,” said Pritzker at a conference of the Illinois Realtors Association this month.
It’s worse than that in Bloomington-Normal, close to 80%, according to realtors. There’s a cost to that too. Brandon Shaffer, deputy managing director of Berkshire Hathaway Home Services in Bloomington, said he understands the concerns of people who do not want multifamily housing in their backyard but noted they do want income for the community.
“Economically, the community has lost as a whole concerning this. ...Bloomington, in the last five years, has lost $66 million in real estate development with the inability to do it,” said Shaffer.
Many municipalities including Bloomington have already approved incentives to create more housing, loosened density requirements and sped up permit reviews. The Regional Planning Commission has developed a housing recovery plan. The statewide package would go much further.
The legislation is supposed to create opportunity and appetite to build workforce or missing middle housing using recommendations contained in a task force report issued in 2024. The goal is to make housing more affordable, something data from the Federal Reserve Bank of St. Louis suggests McLean County may need more than some other counties in the state.
| Median Value | March 2026 | February 2026 | March 2025 | July 2016 |
| McLean | $350,175 | $312,450 | $320,000 | $149,900 |
| Peoria | $156,700 | $144,950 | $122,900 | $135,000 |
| Tazewell | $212,225 | $195,925 | $179,900 | $147,900 |
| Champaign | $308,450 | $288,700 | $308,000 | $152,900 |
The St. Louis Fed also has data showing McLean County residents like homes that are larger than average in Central Illinois—and not just a little bigger. It has been that way for a long time.
| Median Square Feet | March 2026 | February 2026 | March 2025 | July 2016 |
| Champaign | 1,801 | 1,708 | 1,804 | 1,718 |
| McLean | 2,483 | 2,293 | 2,262 | 2,491 |
| Peoria | 1,544 | 1,461 | 1,387 | 1,856 |
| Tazewell | 1,897 | 1,876 | 1,744 | 1,949 |
Bigger houses require bigger lots. A statewide metric of lot size in the bill would be used to decide how many units someone can put in. Some municipal officials believe that metric could make it easier to slot multiple units right next to a single family home in McLean County than it might be in other places in the state.
| Lot size in square feet | Units allowed |
| <2,500 | Single family only |
| 2,500-5,000 | Up to 4 units |
| 5,000-7,500 | Up to 6 units |
| >7,500 | Up to 8 units |
Changing community character
The plan would take away the ability of municipalities to require minimum lot sizes of more than 2,500 square feet for detached single family homes.
Mercy Davison, director of planning and zoning for the Town of Normal, said the legislation would effectively do away with the single-family residence R1 zoning class because nearly every lot in Normal would qualify for a duplex, townhome or row house arrangement.
“Certainly, four units. If you have a lot as small as 5,000 square feet, which are pretty rare in Normal, you could have up to four attached units. If you're between 5,000 and 7,500 square feet, which is probably most lots in Normal, you could have up to six,” said Davison.
Under some circumstances, it’s conceivable there would be an incentive for homeowners to do teardowns of existing homes and construction of fourplexes to gain extra income from the sale or rental of the other units.
More probably, single family occupancy of existing homes could diminish. The community could even return to a rooming house sensibility common in the early 20th century. Zoning currently prohibits that.
“Someone might live in a large old house where it's really hard to afford the maintenance and the utilities on such a big old house. And someone might say, well, this would be great if I could still live here, but carve up, the upstairs into three more units,” said Davison.
Normal doesn't have a ton of huge old houses, said Davison, but the lot size limits in the legislation allow homeowners’ latitude for many houses [for example, a 1960s ranch].
“Maybe it's 1,500 square feet, and it has a 1,500 square foot basement,” said Davison. “Perhaps their income is such they could benefit from having another unit in their home and renting it out. This legislation would permit that.”
Former state Sen. Jason Barickman is now a partner at the real estate development and management firm Fairlawn Capital.
He said growth on the north and east sides of town a few decades ago came out of the suburban lifestyle valued by State Farm workers when that company was enlarging its footprint. That’s no longer the case. And the missing housing segment in the community is different now.
“When the government looks at… maybe we ought to touch the density requirements, what they're going to do is change the feasibility analysis that developers do, and the result, I think, will be that more housing projects come to market if that density factor is loosened,” said Barickman.
He said allowing denser development may not always result in change and will not cause change everywhere. The marketplace is the controlling factor. A case in point is Fairlawn’s Carden Springs development in Normal. It occupies 40 acres and has a lot of green space. Those rental apartments are for higher income residents and with that kind of tenant, Barickman said Fairlawn did not push up against even current density rules, let alone the ones proposed in the BUILD legislation.
Some local control
Realtor Brandon Shaffer said there would still be some local control over whether to approve new developments.
“So, they're not being bumped out completely. The local still has input concerning it. The hope is that it opens up more opportunity for those that are community taxpayers who want to increase housing in the area,” said Shaffer.
The BUILD legislation also eliminates minimum parking requirements. Mercy Davison said that would create a need for a lot more on street parking, something residents of Normal are not used to.
[Those]..."were written for places that have much more robust transit than exists in Normal. Although the town has spent decades … and significant funds … improving transportation alternatives in Normal, the community is a long way from being heavily [non] car-reliant," said Davison.
Shaffer said the concern about changing neighborhood character is “surmountable,” by assuring like quality.
“I think they just have to be smart at where they develop these particular 4-6-8-plexes. It is going to have an impact on how it looks, but it may fit in very well with the land that they're looking to put it in on. You look at other communities throughout the state or throughout the nation, and you can see where multifamily housing has been blended with single family housing very, very well, not only just aesthetically, but cost wise,” said Shaffer.
He said that can also create multiple price points in popular neighborhoods that people never thought they could get into, which will increase the value of a given neighborhood.
Gov. Pritzker has also downplayed the scope of change communities can expect.
“Don't let anyone tell you that this is some kind of radical removal of local zoning. That is not what this is. It is literally about just adding a few more homes everywhere in the state. We're not talking about putting 100-unit buildings into a small, you know, ranch style housing area or neighborhood. That's not what this is about,” said Pritzker.
Infrastructure
Davison said concerns also include whether infrastructure could handle increased demand for water and sewer if urban density increases in any meaningful way in the Twin Cities.
“The pipes under the ground are not getting bigger unless somebody replaces them at great expense,” said Davison. “Different parts of town have different capacity. It's really case by case…. Again, that's why local control is so important, because we understand our local conditions, and it's not clear under this act how that is addressed. You cannot allow access to infrastructure that cannot handle it.”
The potential for additional road traffic created by added four- and eightplexes is probably less of an issue, according to Davison.
She said the town should, however, be able to make reasonable determinations about some things such as owner occupancy of subdivided houses, or the size or placement of accessory dwelling units.
“I don't want to make it sound like the town is opposed to more density or more affordable housing at all price points. I feel like we've demonstrated support for that in the last many years. Our comprehensive plan emphasizes it multiple times,” said Davison.
Red Tape
The proposal [SB 4063] creates standard deadlines for cities to complete plan reviews and inspection of development applications. It would also allow third party reviews or inspections if a city misses a deadline.
“There are developers out there that are looking but they're seeing so many roadblocks. It's not in their best interest to continue to move forward with the development plans. We've got land in a majority of these communities that the developers are looking to build in, but they're being held back,” said realtor Brandon Shaffer of Berkshire Hathaway.
Shaffer said fee and wait time structures hurt small developers as well as large ones.
“If we can eliminate some of the red tape through this initiative, I think we should start to see some of this development move forward fairly efficiently,” said Shaffer.
Some cities are quick to complete reviews. Others…not.
Historically, Normal has been fast and Bloomington less so, though efficiency studies began a couple years ago and changes based on those are helping in Bloomington.
“We've streamlined plan reviews for five days from single family and 10 days from multifamily, which is a plan that's developed faster than any state timelines that have been proposed,” said Mayor Dan Brady.
Brady proffered the example as evidence municipalities are addressing the issues on their own and that there is no need to usurp Home Rule authority, an opinion seconded by Normal’s Mercy Davison.
“We are working on our own code changes, and we think we know best how to do that. While we support the goal the state is aiming for, we think we are better suited to reaching that goal ourselves,” said Davison.
Gov. Pritzker told the Realtors Association Conference that restrictive local rules may not be the only reason the state has failed to create and build enough homes, but they are a big one.
“And it's often rooted in a history of housing discrimination, sometimes where it isn't even paid attention to, because it's just been around for so long. Nobody's attempting purposely to do it, but that's what where it came from,” said Pritzker. “That prevents builders from building even small duplexes, and that prevents accessory dwelling units from being offered on the market by their owners.”
The Illinois Municipal League has also raised questions about how the state would license and assure expertise of third-party reviewers. The league contends those decisions are best made within local government structures.
Other provisions
One piece [SB 4061] of the legislative package would allow multifamily buildings up to six stories in height to have a single stairway for entry and exit rather than two. Many municipalities express safety concerns about that idea.
Another measure [SB 4062] sets statewide rules for charging impact fees to developers of housing projects. Municipalities object to the loss of local control.
The package would cap parking requirements [SB 4064] for new housing projects and ban minimum spaces for some projects involving affordable housing and assisted living. Municipal officials contend parking variances already happen on a case-by-case basis and circumstances vary enough to make one-size-fits-all rules a questionable idea.
Accessory dwelling units [SB4071], also called in-law homes and granny flats, would be allowed statewide in residential areas. The measure prevents local governments from backdoor bans through limits on parking size and other factors.
Affordability
The bill contains a new $100 million grant program for the Department of Commerce and Economic Opportunity that would pay for missing middle housing infrastructure.
Another $100 million would go to the Illinois Housing Development Authority [IHDA] for missing middle and affordable housing programs. A final $50 million for IHDA targets down payment assistance.
While $250 million is a lot of money, it might not go that far when spread across the entire state.
Even upper end housing construction, if that’s what a developer thinks will sell, can have a salutary impact on affordability.
A 2023 study in the Journal of Urban Economics suggests new construction, even construction aimed at more affluent buyers, can move the needle on workforce housing capacity relatively quickly.
“Constructing a new market-rate building that houses 100 people ultimately leads 45 to 70 people to move out of below-median income neighborhoods, with most of the effect occurring within three years. These results suggest that the migration ripple effects of new housing will affect a wide spectrum of neighborhoods and loosen the low-income housing market,” said study author Evan Mast.
Perception of legislation
Despite concerns from municipalities, the package has significant public support, according to a poll last month done for YIMBY Illinois, a nonprofit which “advocates for abundant housing and sustainable, inclusive cities throughout Illinois.”
Strong Towns Blono works with YIMBY on housing issues. YIMBY Illinois is a strong backer of BUILD.
“I, for one, am eager to end the era of suburban exclusion through regulating multifamily units out of existence within certain town boundaries. We live in a regional housing market. Nobody should get special carve outs because they don't want to,” said Noah Tang of Strong Towns Blono.
The survey tried to knock down potential lawmaker objections to change, such as lot size limits and accessory dwelling units.
The vast majority of survey respondents said the cost of renting or buying a home was a problem. Forty-seven percent said it was a major issue. Thirty-seven percent said it was somewhat of a problem.
More than two thirds of those who responded said Illinois does not have enough affordable homes. Every region and demographic in the state had similar results.
The respondents were more evenly split when they were asked how their city or town government is doing in addressing housing affordability.
Data suggests there is also clear appetite for action.
Sixty-one percent said it was “more important to build more homes in their neighborhood so people who work in their community can afford to live here, than it is to protect the neighborhood from change.” Twenty-seven percent said protecting neighborhoods from change is more important.
The poll early last month involved 806 Illinois registered voters. The margin of error is +/-3.8%.
An Illinois Realtors Association survey also found broad support for the ideas in the package.
“Eighty-one percent of all of our neighbors responded that housing in Illinois has become steadily less affordable, and they're starting to see those prices go up,” said Brandon Shaffer of Berkshire Hathaway.
That instrument noted nearly a third of respondents had to cut back in other areas to afford their current housing situation.
“Twenty percent have said that they've put off buying a home because the housing costs have risen too high, too fast,” said Shaffer.
Meanwhile, the Municipal League is cataloging cities and towns that are saying nay by passing resolutions. The league pointedly indexes those to legislative district. In Central Illinois opposition includes the City of Peoria, Village of Lexington, Village of Gridley, City of Minonk and Farmer City.
Stakeholder engagement
Municipalities also said they feel left out of the process. Several cities did have representation on the Ad Hoc Missing Middle Housing Solutions Advisory Committee that a couple of years ago came up with recommendations to address the housing shortage.
They are less satisfied with their ability to help shape the legislation as written. The mayors of Bloomington, Decatur, Peoria and Rockford last week wrote a letter expressing their frustration with what they saw as a shift away from that earlier collaborative process.
“The BUILD agenda appears to rely heavily on uniform, statewide mandates related to zoning, density, permitting and development standards. While well-meaning, some of these proposals risk undermining our ability as municipalities, thus our residents, to plan responsibly and grow strategically,” said the mayors.
The letter encourages a renewed focus on incentive-based strategies, local-state collaboration and flexibility that allows communities to implement solutions tailored to their unique conditions.
Bloomington Mayor Dan Brady also threw a bit of shade at Pritzker’s housing roundtable in Bloomington last month for not including the city.
“Let's learn from some of the things Bloomington has done. Well, it's very difficult to do when there's closed sessions held in your city,” said Brady.
Brady said the issue has moved from discussions with those who may have differing opinions to something that now may just be pushed through the General Assembly with the state taking the role of regulator. He said that’s not the way to create effective legislation.
“When nobody totally gets their way, that's a better product. When you've got to compromise, that's a better product. And when you do that, that's going to have a better end result. Right now, the perception is that that's not going on,” said Brady.
Former lawmaker and current developer Jason Barickman said there’s still time for all voices to be heard during the spring session and he thinks that will happen.
“It's clear that there's a belief that today's status quo isn't working,” said Barickman.
Barickman said he does not think final product will be one-sized-fits-all across all 102 Illinois counties.
“I think that the end result will be something that is thoughtful but maybe disrupts the status quo in a way that will be potentially uncomfortable to some people,” said Barickman.
Barickman said there will likely be unintended consequences but the policy goals that are driving it are laudable.
“We like that our communities have uniqueness and character. I think it's a bit of a needle you have to thread but I think it's possible,” said Barickman.
The BUILD package will not affect the combination of high interest rates, pricey construction materials and labor shortages and costs. Those remain barriers to housing construction. Shaffer said the legislation may not immediately impact demand to dig now. But he said new rules and state incentives for affordable housing and shovel-ready projects will target areas of infill that have existing demand.
“I think there's pieces of this that really touch all aspects of the state to really help start to get that housing rolling that we need,” said Shaffer.
Every little bit helps, he said.
