Illinois

Summary

Illinois state is facing challenges to housing affordability. For every 100 low-income renter households, there are 67 units available that are affordable to them. The median household income in the state is $43,099 whereas the median rent in the state is $941. Currently, the state is short over 143,873 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

33.5%

share of renter households
41.8%

share of low-income households
43.7%

share of rent-burdened households

Renter population data

Renters vs homeowners

Low-income renter households

Rent-burdened households

Affordable housing shortage

Rent vs median household income

Affordable housing stock

Finance institutions

Illinois Housing Development Authority

Illinois Housing Development Authority
111 E Wacker Drive, Suite 1000
Chicago, IL 60601

List of loan programs

• Illinois Affordable Housing Tax Credit
• IHDA Bond Programs
• First Mortgage Loan Programs
• Soft Funds
• Permanent Supportive Housing

QAP document (Qualified Allocation Plan)

The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.

Housing news

How Fed Rate Cuts Impact the Housing Market

The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, the ongoing housing shortage and existing conditions in the market remain tough obstacles.
Key Takeaways:

• Lower Mortgage Rates: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
• Home Sales: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
• Ongoing Supply Issues: Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.

While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.

States With the Largest Homeless Populations

In 2023, the number of homeless individuals in the U.S. reached approximately 653,000, the highest since such records began in 2007. This figure represents a significant 12% increase compared to 2020, as reported by the U.S. Department of Housing and Urban Development in their Annual Homelessness Assessment Report to Congress.

Here are the top 10 states with the largest homeless population:

1. California (181,399)
2. New York (103,200)
3. Florida (30,756)
4. Washington (28,036)
5. Texas (27,377)
6. Oregon (20,142)
7. Massachusetts (19,141)
8. Colorado (14,439)
9. Arizona (14,237)
10. Pennsylvania (12,556)

The homebuying affordability gap is widening across the country

The worsening housing affordability crisis in the U.S. has broken several records, the recent being the national affordability gap nearing a 10-year high. Only 63% of counties are now affordable for median-income households, compared to 94% in 2019. The median home price exceeds what the average household can afford by nearly $70,000.

Homelessness, already at a record high last year, appears to be worsening among workers

Homelessness is rising in the US, with a growing number of employed people now unable to afford housing due to high rents. Experts say increasing rental assistance and building more affordable housing are some ways to address this issue.