Illinois Gov. JB Pritzker wants to see statewide zoning reforms to help encourage the construction of more homes.
Pritzker unveiled a new initiative, “Building Up IL Developments” or BUILD, as he unveiled a new $56 billion state budget. That plan calls for modernizing building codes statewide to make it easier to build workforce housing.
“The problem is clear, rent is too high and homeownership is too far out of reach,” Pritzker said. “The cause is clear, too. We are not building enough homes fast enough.”
Specifically, Pritzker wants to legalize more housing types, like duplexes, triplexes, four-flats, and accessory dwelling units, or ADUs. The initiative also seeks to cut parking mandates, which often drive up costs with space requirements for new build, even where street parking and public transit are available.
Workforce housing goals
A 2025 report from the Project for Middle Class Renewal at the University of Illinois found the state needs to build 227,000 homes by 2030 to keep up with demand. The state is already 142,000 units short, and needs to build 45,000 units per year, per the report.
The state-by-state housing affordability report card from Realtor.com® gives Illinois a C.
Pritzker blamed local regulations that make it more difficult, adding some date back to redlining.
“Often the problem is the failure to modernize and keep up with the changing times that we live in,” he said. “It all adds up to bureaucratic red tape that unnecessarily increases costs, delays construction, and frequently kills projects altogether.”
The state also wants to standardize timelines and reduce local government permit reviews, allowing some third parties to sign off on permits, and standardize impact fees. At least 11 other states have proposed similar reforms, resulting in a mix of support and pushback over their effect on local governance.
Pritzker said the plan could reduce the impact of development on any one community. “A little more housing in each area can significantly advance our housing stock,” he said.
The Illinois Realtors® applauded the move. CEO Jeff Baker said the group has been pushing to expand options for ADUs and “missing middle” housing since 2020. A lot of that came from meeting with local officials, but momentum has been growing since 2024 when Pritzker convened a committee on the issue.
“While we have been proposing these measures for years, having the governor’s support is a significant turning point,” Illinois Realtors Board President Jeff Kolbus said.
Larger traction
Pritzker said the zoning reforms are part of a larger effort to address housing affordability. It follows a 2024 executive order in which Pritzker created a new director of housing solutions director role to help implement housing laws. The state is targeting increasing housing for people earning 80% to 140% of their area median income.
Also in the bill is a new $100 million missing middle housing infrastructure grant program that would be run out of the Illinois Department of Commerce and Economic Opportunity.
Another $100 million would go to the Illinois Housing Development Authority for missing middle and affordable housing programs. And, Pritzker proposed $50 million for IHDA for down payment assistance programs.
Illinois Republicans criticized the speech and called for less spending. Their statement didn’t mention the housing proposal.
But Pritzker also called out the state’s major energy grid operators—PJM Interconnection and Midcontinent Independent System Operator Inc.—saying they needed to compel large energy users like data centers to pay for their higher capacity usage.
That would tamp down rising energy costs homeowners face. The governor has also signed an executive order to build more nuclear power to deliver 2 gigawatts of nuclear power, enough to power 2 million homes.
And he called on the state’s legislature to advance a bill that requires home insurance companies to provide justification for major increases in premiums. About 1.5 million homeowners could see insurance increased by an average of $750 this year.
