(Above) Attendee-eye view of the November 21 forum in Lincoln Park. Photo by Don DeBat.
November 28, 2024 – “Let us build!”
Those pro-development words were printed on panel moderator Frank Campise’s name tag at the heavily attended Lincoln Park Builders of Chicago’s 35th annual Real Estate Forum held at the Theater on the Lake on November 21.
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Campise (left), principal and head of acquisitions for JAB Real Estate, seemed to sum up the mood of more than 1,000 forum attendees. Founded in 1968, Lincoln Park Builders is an honorary society of influential real estate builders, developers, managers, and principals. |
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“Chicago’s tiered tax structure on affordable housing is not good enough,” said panelist Adam Friedberg (right), CEO of Mavrek Development. “Other cities better-appreciate builders with greater tax incentives.” |
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Panelist Ciere Boatright, Commissioner of the Chicago Department of Planning and Development, seemed to be on the defensive, as builder panelists and forum attendees championed their cause. “Some things don’t pencil-in for the city,” Boatright (left) repeatedly told builders at the forum. |
“Let us build and we will help reduce the city’s budget deficit,” summarized one North Side housing advocate. “Boatright hit some key talking points – including $6 billion in development that was recently approved – but everyone in the jam-packed room knew how tough the city is making things for development investment in Chicago.”
Trump term may challenge those seeking affordable housing
It is noteworthy that President-elect Donald Trump was not a topic of discussion at the forum, analysts said. Not surprising, though. With a powerful Democratic Socialist on the panel, why rock Boatright’s boat?
Nationwide, the counties where it’s most difficult to buy a home saw the biggest voter shifts toward Trump in the election, according to an NBC News analysis of housing and voting data. That widespread rightward shift underscored the severity of America’s affordable housing shortage – and may have helped Trump reclaim the presidency.
However, Trump’s imminent return to the White House poses “serious challenges” for people seeking affordable housing, warned the National Low Income Housing Coalition (NLIHC).
During Trump’s previous term, his administration tried to slash federal investments in affordable housing, sought to raise rents for Section 8 tenants, and attempted to impose more stringent work requirements for renters who rely on governmental subsidies, according to the NLIHC.
Chicago leads in rent growth
According to Campise, Chicago is tops in the nation for rent growth over the past 18 months. He claims that is the result of a lack of investor interest in Chicago that has slowed development. While some large cities are seeing rent rates slip, Chicago’s restrictive zoning policies, overly burdensome building codes, and high property taxes may be holding developers back.
Friedberg concurred, saying many won’t invest in Cook County because of high taxes.
Sadly, after the rash of higher reassessments this year, renters should expect even more rent hikes in the next 18 months to cover skyrocketing property taxes.
Several panelists also bemoaned the high cost to build affordable housing in Chicago. Costs can run as high as $500,000 to $600,000 per unit.
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The cost to build affordable housing in Chicago “is the complete antithesis of what affordable housing should be,” said panelist Jean Dufresne (right) of Moth Architects. “We’re not talking granite countertops and beautiful bathrooms; we’re talking laminate and vinyl.” |
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