The Illinois Policy Institute announced that development restrictions have contributed to nearly a 50% increase in Illinois home prices since 2018 by limiting housing supply.
According to the Illinois Policy Institute, home prices in Illinois have risen from $187,874 to $278,351 since 2018. The institute attributes this significant increase to insufficient housing supply caused by regulations that restrict development. This imbalance between supply and demand is affecting homebuyers across the state.
The National Association of Home Builders reported that government regulation accounts for 23.8% of the price of a new single-family home in the United States, averaging $93,870. These costs include land use restrictions during development and construction phases. Such regulations are limiting housing supply nationwide, particularly impacting affordability in entry-level markets.
Founded in 2002, the Illinois Policy Institute is a nonpartisan research organization dedicated to promoting free market principles to improve lives in Illinois. It focuses on issues such as taxes, government accountability, and economic liberty. The institute produces policy reports and advocates for reforms aimed at addressing state challenges.
