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Chicago’s real estate industry is pushing back against the anti-gentrification ordinance that took effect this month, with one group launching a letter-writing campaign against it. Landlords and brokers are frustrated with the right of first refusal granted to tenants in some Northwest Side neighborhoods, which allows tenants to band together to purchase their buildings ahead of any outside investor. The Chicagoland Apartment Association and the Neighborhood Building Owner’s Alliance said the right of first refusal will delay the sale of buildings, causing problems for owners who may need to sell quickly, and could have a cooling effect on investment in the area. “This ordinance punishes owners of affordable housing, devalues their property, and makes it harder to invest in neighborhood housing,” said Mike Glasser, president of the Neighborhood Building Owner’s Alliance, which launched a letter-writing campaign against the ordinance. Glasser’s organization, an alliance of 11 landlord associations, put up a webpage with forms for contacting alderpeople, along with information about the ordinance. It’s also asking members to share personal stories of how the ordinance affected them if they are owners in the area. In addition to legislative tactics, the group is exploring ways to challenge the ordinance in court, according to comments made in an October conference call. They are looking for examples of sellers being harmed by the requirement to give renters in larger buildings a 60-day notice of intent to sell and another 90 days to form a tenant association to decide if they want to buy the building. This timeline is shorter for buildings of four units or fewer, where the total timeline is 45 days. The ordinance was crafted to address documented displacement and gentrification faced by residents in the communities covered by the ordinance, said Kelvin Gensollen Arellano, housing organizer with a community group called Palenque LSNA. The industry’s arguments, on the other hand, are “hypothetical,” he said. The ordinance is a pilot program that will sunset at the end of 2029 unless renewed. The program applies to parts of Logan Square, Avondale, Hermosa, Humboldt Park and West Town as well as Pilsen. It is meant to stem exploding housing costs in areas that began gentrifying rapidly about 10 years ago, when developers started tearing down two- and three-flats and replacing them with luxury homes along the 606 trail. The area lost 6.1 percent of its two- to six-flat buildings between 2013 and 2018, according to the DePaul Institute for Housing Studies. In response to the loss of smaller multifamily buildings, the ordinance also allows for the construction of two-flats by right in any areas within the ordinance’s boundaries that are zoned for single-family. Finally, the measure increased demolition surcharges from $5,000 per unit or $15,000 per building to $20,000 per unit and $60,000 per building, whichever is higher.

How homeownership is shifting in Chicago: According to a new analysis of U.S. Census Bureau data by PropertyShark, the homeownership rate in Chicago increased in 2024. In the city of Chicago, more than 46% of homes are owner-occupied, which is up 2.1 percentage points from 2019 and 2.6 percentage points from 10 years ago. Across Illinois, more than two-thirds of homes are owner-occupied, showing a 1.4-point difference from five years ago and a 1.9-point difference from 10 years ago. Homeownership rates were also found to be surging in migration hot spots. Port St. Lucie, Florida, had the highest rate of homeownership among the 100 largest cities analyzed by PropertyShark, with almost 85% of residents owning their homes as of 2024. Arizona, another state experiencing a surge in migration, had four cities in the top 10 with the highest homeownership rates: Gilbert (70.7%), Chandler (68.3%), Scottsdale (66.2%), and Mesa (66.2%). Scottsdale saw a significant increase of 10 percentage points in homeownership over the past decade. Coastal enclaves generally had lower homeownership rates. Newark, New Jersey, had the lowest rate of homeownership among the analyzed cities at 24.6%, followed by Jersey City, New Jersey (27.6%), and New York City (32.5%). Miami (33.4%) and Los Angeles (35.1%) were also near the bottom. Miami saw a historic increase of 3.8 percentage points over five years and 4.2 points over 10 years. Private equity's interest in single-family homes may have affected homeownership in some communities. Cincinnati, with a homeownership rate of only 37.9%, was a prime target for investors until the Port of Greater Cincinnati Development Authority purchased a portfolio of 194 single-family homes for $14.5 million. The Port is now selling the properties to lower-income residents. Affordable areas saw an increase in homeownership over the past 10 years. Chandler, Arizona, tied with North Las Vegas for the top spot with a 10.3-point gain. New Orleans followed closely with a 10-point gain. Looking at the past five years only, Fresno, California, recorded the most significant increase in homeownership at 6.8 points, followed by New Orleans (6.3 points) and Detroit (5.9 points). These areas attracted pandemic in-migration with lower home prices and more affordable costs of living.

If you want to secure the best financing for your loan and negotiate the best purchase price and real estate contract I can help you get a deal in this sellers market. Use this link for resources regarding financing opportunities and basic loan concepts under “videos”, RSVP for events and see what you are pre approved to buy. https://lnkd.in/gb2WDJNf

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Pros and cons list comparing buying and renting a home: Buying a Home Pros: 1. Equity Building:?Monthly payments go toward building ownership rather than paying off someone else’s mortgage. 2. Stability:?Fixed-rate mortgages allow for predictable payments, protecting you from rent hikes. 3. Customization:?You can renovate or make changes to the property as you wish. 4. Potential Investment Growth:?The value of the home may appreciate over time, potentially providing a return on investment when selling. 5. Tax Benefits:?Mortgage interest and property taxes may be deductible, depending on your country’s tax laws. Cons: 1. Upfront Costs:?The down payment, closing costs, and fees can be significant. 2. Maintenance Responsibility:?You’re responsible for repairs and upkeep, which can be expensive and time-consuming. 3. Less Flexibility:?Selling a house can take time, so you’re less mobile if you need to relocate quickly. 4. Property Value Fluctuations:?If the market declines, the value of your home could drop, potentially leaving you “underwater.” 5. Long-term Commitment:?Mortgages can span decades, and committing to such a long-term financial obligation can be daunting. Renting a Home Pros: 1. Flexibility:?Renting allows you to move with relative ease once the lease is up, ideal if you’re not sure about staying in a location long-term. 2. Lower Initial Costs:?Generally, renters only need a security deposit and the first month's rent, compared to the hefty down payment for buying. 3. Less Responsibility:?Landlords are typically responsible for maintenance and repairs. 4. Predictable Rent (in some cases):?Rent can remain stable for the length of the lease, avoiding price hikes (although rent may increase at renewal). 5. No Property Value Risk:?You don’t bear the risk if property values drop. Cons: 1. No Equity Building:?Rent payments don’t contribute to ownership, so you aren’t building wealth through the property. 2. Rent Increases:?While rent may be stable during the lease term, landlords can raise rent when the lease renews. 3. Limited Control:?You can’t make significant changes or renovations to the property. 4. Possible Instability:?You may be asked to move if the landlord decides to sell or repurpose the property. 5. Long-term Costs:?Over many years, renting can be more expensive than buying in terms of cumulative costs. Each option has its own unique set of benefits and drawbacks, so it really depends on your lifestyle, financial situation, and long-term goals!