The Fuzzy Math and Unanswered Questions of Broadway B3-5 Rezoning
The recent proposal to upzone Chicago's Broadway corridor, stretching from Montrose to Devon avenues, aims to stimulate development and address the city's housing shortage. The plan envisions adding in its best case:
12,000 new housing units to the area,
20% designated as affordable housing, equating to 2,400 affordable units
Question 1: How many current affordable housing residents will be displaced due to developer-led property acquisitions, increased property taxes, and rising rents?
Question 2: How many new affordable housing units could be constructed or use existing structures without upzoning?
Why upzoning is the city’s easy out strategy:
In Chicago, upzoning initiatives are linked to affordable housing mandates through the city's Affordable Requirements Ordinance (ARO). This ordinance stipulates that residential developments receiving zoning changes, city financial assistance, or involving city-owned land must allocate a percentage of units as affordable housing. Specifically, in areas like the Broadway corridor, new residential buildings with more than 10 units are required to reserve 20% of them as affordable, targeting residents earning up to 60% of the Area Median Income (AMI).
While this initiative seeks to increase affordable housing stock, it raises critical questions about the displacement of current residents due to developer-led property acquisitions, increased property taxes, and rising rents.
Case Study: Previous Upzoning Outcomes
A study examining the effects of upzoning in Chicago revealed that such zoning changes led to significant increases in property values but did not correspondingly result in additional new housing construction in the short term. This outcome suggests that while property owners benefit from increased asset values, the anticipated boost in housing supply—and thereby affordable housing—may not materialize as quickly as intended. Yonah Freemark+1Yonah Freemark+1
The Broadway upzoning proposal presents an opportunity to address Chicago's housing shortage by adding new units, including affordable housing. However, without careful consideration of the potential displacement of current residents, the plan's stated benefits are misleading. A comprehensive approach that includes safeguards for existing residents, alongside the development of new housing, is necessary to ensure that the math truly adds up in favor of the entire community.