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rank Campise, co-founder of JAB Real Estate, kicked off the Lincoln Park Builders Forum by expressing a desire to slow down Chicago's apartment rent growth. As a multifamily landlord with significant holdings in the city, this stance may seem counterintuitive. However, Campise argued that while rent growth benefits landlords, it's not what's best for the city.
Chicago's nation-leading rent growth over the past year-and-a-half is largely due to a lack of investor interest, leading to a drop-off in development. In contrast, stagnant and falling rents in markets like Denver and Salt Lake City are attributed to an influx of new construction. Campise and industry experts pointed to restrictive zoning policies, burdensome building codes, and unpredictable property taxes as major barriers to investment.
"If you let us build, we'll deliver tax revenue like nobody's business," Campise said. The panel included Planning and Development Commissioner Ciere Boatright, who acknowledged the city's efforts to streamline the approval process through "Cut the Tape." This initiative has reduced the average time for project applications to pass Plan Commission by 40% to 79 days.
The city has approved $6 billion worth of projects this week, including a quantum computing facility and an office-to-residential conversion. Boatright encouraged developers to target neighborhoods outside of downtown, leveraging the $1.25 billion housing and economic development bond to support affordable housing projects. The Department of Buildings' divergence from the International Building Code has driven up costs for affordable housing projects.
Michael Herman, CEO of Chicago House social service agency, noted that his firm's project to build four six-flats featuring affordable units cost $14 million, or over $580,000 per unit. Jean Dufresne of Moth Architects echoed this concern, highlighting the high costs associated with building affordable housing in Chicago. Herman urged the city to reserve more "cash in lieu" funds for very low-income households making 30% or less of the area median income.
