Chicago Eyes Surplus Land for Housing Plan
Chicago is reportedly developing a "missing middle" housing plan that targets the use of surplus public land. The initiative is aimed at addressing housing shortages, which could affect the city's long-term residential supply dynamics.
- The "Missing Middle Infill Housing" initiative is funded by a $1.25 billion bond for housing and economic development. - To facilitate development, the city sells vacant residential lots to developers for $1 each and provides construction subsidies of up to $150,000 per unit. - This program targets the development of duplexes, triplexes, and other small multi-unit buildings on an estimated 8,800 city-owned vacant lots, which are primarily located on the South and West sides. - The new for-sale housing units are intended for households earning up to 140% of the area median income, which was $134,400 for a two-person household. - Chicago faces a significant housing deficit, with estimates suggesting a shortage of around 120,000 affordable units. - In the Chicago metro area, there are only 28 affordable and available rental homes for every 100 extremely low-income renter households. - The initiative has progressed in phases, with one of the latest rounds in early 2026 approving 35 small multi-unit buildings, which will add 99 new for-sale units on 24 city-owned lots with a total project value of about $35.5 million. - A recent groundbreaking in North Lawndale marked the start of a $5.4 million project to build seven two-flat homes, part of a larger plan for 115 units in that neighborhood alone.
