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Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
There is a new housing plan moving through Springfield that every Chicago area investor should know about. It is called BUILD, and it could change how, where, and what you build across Illinois.
On the Straight Up Chicago Investor Podcast, we talk a lot about how rules and laws shape your bottom line. This one is big. So I want to break it down for you here in plain words. No jargon. Just what it is, where it stands, and what it could mean for your portfolio.
Key Takeaways
Governor Pritzker has a new plan called BUILD.
Illinois needs about 142,000 more homes right now.
The plan would let more types of homes get built faster.
Many mayors do not like the plan.
The plan could open new chances for real estate investors.
What Is the BUILD Plan?
BUILD stands for Building Up Illinois Developments. Governor Pritzker shared the plan in February. He says Illinois has too few homes, rent is too high, and buying is too hard. His fix is to make it easier to build more homes.
Illinois has chipped away at housing rules before. Chicago’s original pilot ADU ordinance was an early move. BUILD takes that idea statewide and goes much further.
The plan is six new bills in the State Senate. Each bill changes the rules in a different way. Together, they would change how houses and apartments get built across Illinois.
What Would Change?
Here are the six big changes the plan would bring:
More types of homes. Right now, many towns only allow one home per lot. BUILD would let people build duplexes, triplexes, and four flats on small lots.
No more bans on small extra homes. These small extra homes are called ADUs. Think of a coach house or a basement apartment. Some towns ban them. BUILD would not let towns ban them anymore. Chicago is already moving this way. We broke down the new citywide ADU rules in this GC Realty blog post.
Faster permits. A permit is a yes from the town to build something. Right now, this can take a long time. BUILD says towns must say yes or no in 30 days for big projects. They get 15 days for small homes.
Outside helpers can step in. If a town does not act in time, the builder can hire an outside helper to check the plans. The town must accept it.
Fewer parking rules. Many towns make builders add lots of parking spots. This costs a lot of money. BUILD would cut back on these rules.
More money for builders. The state would put $100 million toward fixing things like sewers and water pipes. This helps unlock new building sites. Another $250 million would help first time home buyers.
Even if the rules open up, the next question is what it actually costs to build one of these units. We broke that down on Episode 325 of the Straight Up Chicago Investor Podcast.
Where Does the Plan Stand Now?
The plan is stuck for now. The State Senate held a hearing in late April but no vote has been taken. The bills missed key deadlines. The Governor still wants to push them through this spring.
Why Are Mayors Upset?
Many Illinois mayors do not like the plan. They feel the state is taking away their power, and that one set of rules cannot fit every town.
Two big groups are leading the pushback: the Illinois Municipal League and the Metropolitan Mayors Caucus. Together, they speak for hundreds of towns. Their main concerns are:
Loss of local control over building rules.
Older sewers and pipes might not handle more homes.
30 days is not enough time to check big plans.
Each town is different, so one rule will not work for all.
Mayor Tim Baldermann of New Lenox called it one of the worst bills he has seen in 20 years. That tells you how strong the pushback is.
What This Means for Real Estate Investors
Like most big changes, BUILD comes with both upside and risk. Here are the facts on both sides so you can make your own call.
What Could Go Well
More units per lot. If a small lot can hold two, three, or four units instead of one, you can earn more rent from the same piece of land.
ADUs in more places. Suburbs that ban coach houses and basement units today would have to allow them. That can turn one home into two income streams.
Faster permits. Less waiting time means less money spent holding land you cannot use yet.
Possible land value gains. Lots in single family zones could be worth more if you can build more units on them.
Lower parking costs. Building parking adds a lot to project costs. Less parking means more space for living units and lower build costs.
What Could Go Wrong
More supply could lower rents. If many new units come online at once, rents could drop. That hurts owners of existing rentals.
Build costs are still high. Just because you can build does not mean it pays off. Materials, labor, and permits remain pricey in Chicago.
Old systems may not be ready. Older neighborhoods have older sewer, water, and power lines. Adding more units may push them past their limits, and upgrades cost money.
Local fights are not over. Even if BUILD passes, towns may push back. Expect lawsuits, slow rollouts, or workarounds.
The bill may not pass. It could pass as is, in pieces, or not at all. Plans built around a law that does not exist yet are risky.
What Happens Next?
Here is my honest take. I do not think this passes as written. The pushback from cities is too loud and too organized. The state had to know that walking in with a plan that strips local control would not sit well with hundreds of mayors and town boards across Illinois.
That said, I like the spirit of it. Anything that cuts friction and helps more housing get built is good for investors, good for renters, and good for the state. Our industry has too many slow lanes, and trimming some of them would unlock real projects.
So even if the bill dies, the conversation matters. Some of these ideas will come back in a slimmer version, or towns will start adopting parts of it on their own. We will keep covering it on the podcast and the blog.
Frequently Asked Questions
When could BUILD become law?
If the State Senate and House pass the bills this spring, parts of BUILD could take effect later this year. Right now, the bills are still being talked about.
Would BUILD remove single family zoning?
No. BUILD would still allow single family homes. It would just let other types of homes go up too in those areas.
Does BUILD help renters?
The goal is yes. More homes should mean lower rents over time. But some say more building does not always lower costs right away.
Will this affect rental property owners in Chicago?
Yes. New rules on ADUs, lot sizes, and permits could change what you can build and how fast. It could also change the value of land you own.
