For many Chicago households, affordable housing is rental housing. In 2007, over 35 percent of the foreclosures filed in the City of Chicago affected buildings with rental units. These foreclosures put increased strain on the rental market by displacing current renters from foreclosed properties and taking foreclosed multi-family properties out of the supply of rental units.
The report found that the present foreclosure crisis in the City of
Key findings include:
• Over 35 percent, or over 4,800, of the nearly 14,000 overall 2007 foreclosure filings in the City of
• Depending on the number of units in each property, these foreclosures could impact between 9,644 and 28,923 housing units.
• Foreclosures on 2- to 6- unit multifamily buildings were concentrated in certain neighborhoods. For example, in
• Eight of the ten community areas with the highest number of foreclosures on 2- to 6-unit buildings were community areas that also experienced recent losses in renter occupied housing units.
Between 1990 and 2005, the supply of affordable rental housing decreased by an average of 9,000 units each year, due to factors such as condominium conversions, demolition, or previously affordable units increasing rents to market rate.
Although the demand for affordable rental housing in the region has also declined in recent years, this decline has not been as sharp as the decrease in supply. In 2000 it was estimated that the demand for affordable rental housing in exceeded the supply by roughly 34,000 units. By 2005, this imbalance had increased to 114,000 units.
It is clear that rising levels of foreclosures are adding stress to the already strained affordable rental housing market.