Use rescue funds to encourage home buying

Illinois is amid a housing crisis. Statewide we have less than two months of housing inventory available yet trail all five other states in the Midwest for new housing permits this year. This amplifies the lack of housing affordability. The state is short more than 270,000 homes for those earning less than the area median income. Years of policy decisions, both broad and narrow, have exacerbated Illinois' slow and painful recovery from the crash of 2007.

This crisis is compounded when we consider the economic impact of housing in Illinois. In 2020, the real estate industry accounted for $143.5 billion, or 16.5% of the Illinois gross state product. This far exceeds any other sector of our state's economy.

The National Association of Realtors calculated that the average home sale in Illinois generates almost $70,000 in local economic impact; that number is higher in Chicago's suburbs. Whether it's new furniture, hardware to update a home or the thousands of dollars in purchases sparked by a closing day, home sales put real dollars into our local area's pocket.

The good news? There are opportunities to unlock the American Dream of homeownership for local families. The American Rescue Plan Act, passed earlier this year, appropriates several billion dollars directly to local communities. We encourage local governments to dedicate these dollars to encouraging homeownership.

By formulating well-developed plans with responsible oversight, construction of new homes and fixing up vacant and blighted properties are just a few ways that communities can make the American Dream of homeownership more attainable.

Responsible growth frees potential homeowners to invest in their homes, building wealth and stability. Housing policy that safeguards homeowners and responsibly uses public funds encourages everyone to invest in themselves and the community.

Jeff Merrinette, Local Governmental Affairs Director

Illinois Realtors

Downers Grove