FHLBank Chicago Funds Study Highlighting Housing Supply Challenges in Illinois and Wisconsin
Event summary
- Urban Institute released a study on owner-occupied housing supply in Illinois and Wisconsin, funded by FHLBank Chicago.
- Report finds aging housing stock and low new construction are constraining homeownership supply.
- 152 member financial institutions surveyed, identifying new construction and rehabilitation as key opportunities.
- Barriers include limited developer capacity, construction risk, and gaps in institutional expertise.
The big picture
The study underscores the broader challenge of aging housing infrastructure and limited new construction in key Midwest markets. FHLBank Chicago's role as a cooperative lender positions it to address these supply-side constraints, but success will depend on coordinated efforts between policymakers, developers, and financial institutions. The findings could influence regional housing strategies and funding priorities.
What we're watching
- Policy Impact
- How FHLBank Chicago will leverage these findings to influence housing policy and funding in Illinois and Wisconsin.
- Market Response
- Whether financial institutions will increase investment in rehabilitation and new construction based on the report's insights.
- Execution Risk
- The pace at which barriers like developer capacity and construction risk can be mitigated to expand housing supply.
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