Since 2000 the population of Kane county has increased over twenty percent. Most of that population growth occurred in the first decade after 2000. According to the most recent Kane County Housing Readiness Market Analysis, “Vacancy rates peaked at 6.3 percent in 2014 but declined to 3.5 percent in 2022, signaling increased demand and potential affordability challenges.” In Aurora and St. Charles, vacancy rates have hit 15 percent indicating economic distress. Kane County also has fewer affordable homes than the rest of the central region for families of four and across all levels. In the eastern third of the county this is less so.
According to the Chicago Metropolitan Agency for Planning, “One- and two-person households make up the majority, yet housing stock is dominated by three- and four-bedroom homes” and “median home values saw a 30 percent increase between 2020 and 2023.” As it is elsewhere in the country, housing demand far outstrips supply. More housing is needed.
Much of Illinois, especially urban and suburban areas, has zoning that effectively limits housing to single-family homes or large lots. This makes it impossible to build a variety of housing types that would provide entry points for diverse income levels.
Notably, Kane County has 7,500 acres of vacant land zoned for residential use. Over half of this is in the central third of the county.
Some states have taken the lead in forcing the issue. In 2019, the State of Oregon passed House Bill 2001 requiring cities of certain sizes to allow duplexes, triplexes, four-plexes, and cottage clusters on land previously zoned only for single-family homes. This kind of state-level zoning preemption overrides overly restrictive local rules and opens the door to more abundant, diverse housing stock statewide.
Other states, including California, Vermont, Washington, and Montana, have passed similar laws or reforms aimed at legalizing multi-family housing or broader “middle housing” types to increase supply and reduce prices.
These reforms underscore a basic economic reality: when supply is artificially constrained, even modest increases in demand, from population growth, falling mortgage rates, or investor activity, can lead to sharp price increases because there simply aren’t enough units available.
