Our Take: Low housing inventory linked to restart of Illinois’ $75 million rental assistance program

Yesterday, the Chicago Tribune reported, "Illinois rental assistance program restarted, with $75 M available for renters and landlords," and here's Our Take:

As stated in the article, Illinois reinstated its rental assistance program with $75 million available to support renters and landlords facing ever increasing housing costs. Both renters and landlords are still experiencing the pains associated with the shortage of available housing inventory. With fewer homes on the market, competition for rentals has increased, pushing prices higher.

The rental market in Illinois, particularly in urban areas like Chicago, has seen significant price increases as demand spills over from the ownership market. With fewer homes being built or available, renters have fewer options, resulting in increased competition. This economic dynamic pushes rental prices higher, making housing less affordable across the board.

Illinois REALTORS® CEO, Jeff Baker said, "The ownership and rental markets are intrinsically linked." Nationwide, there is a housing shortage of approximately 4,000,000 homes. Baker said, "Would-be buyers priced out of the ownership market are pushed into or left in the rental market, fueling demand there and higher rents."

The state's rental assistance program aims to alleviate financial stress for tenants and property owners while addressing the impact of rising rents caused by limited housing supply. Applicants need to meet specific income requirements, and funds will be distributed directly to landlords to cover rental arrears or ongoing payments.

The assistance program is a positive, albeit short-term solution to the effects of the housing supply crisis in Illinois. Illinois REALTORS® is working with other state leaders on longer term solutions that will boost new housing inventory statewide.