Chicago's missing middle housing plan targets surplus public land

"Chicago city planners are trying to solve a national problem that officials in many cities talk about but rarely tackle at scale turning idle public land into missing middle housing in neighborhoods that have seen decades of disinvestment. For a third round, planners and city officials have initiative selling tracts of surplus property for small-scale residential infill, rather than marketing these parcels for parking, speculation or short-term budget plug-ins."

"In a small but growing group of cities, planners have committed to repurposing surplus public land for housing to increase supply and improve affordability. Seattle, San Francisco, Los Angeles and Atlanta are among those launching efforts, but focus mostly on extremely affordable or supportive housing, usually rentals. The Chicago initiative supports owner-occupied homes for buyers earning up to 140% of the area median income, or $134,400 a year for a two-person household, otherwise known in residential real estate as missing middle or workforce households."

"Windy City officials kicked off the program in late 2024, when the Planning and Development Department committed $75 million for the Missing Middle Infill Housing initiative. That funding is part of a $1.25 billion bond issue for economic development and housing. These developments will put vacant City lots into productive use, bring attractive and much-needed infill housing to local blocks while creating home-ownership opportunities that build community wealth, Planning and Development Commissioner Ciere Boatright said in a statement."

Chicago is converting idle public parcels into small-scale residential infill to address missing-middle housing and decades-long neighborhood disinvestment. Planners prioritize owner-occupied homes for buyers earning up to 140% of area median income, expanding workforce homeownership opportunities. The Planning and Development Department committed $75 million as part of a $1.25 billion bond for economic development and housing. Earlier rounds produced 115 for-sale units from 35 lots and 93 homes across 31 buildings and 30 lots. The initiative contrasts with efforts in other cities that mainly target extremely affordable rental or supportive housing by emphasizing for-sale, community-wealth-building development.

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