Near South Side

https://www.regionalhousingsolutions.org/community/near-south-side

Submarkets (What is a submarket?)

77% of Near South Side is in Submarket 7.
High population growth, newest housing stock
23% of Near South Side is in Submarket 3.
Higher density urban, high income, young, high home prices and rents

Areas with a similar combination of these submarkets:

  1. Elburn
  2. Gilberts
  3. Hampshire
  4. Huntley
  5. Lakewood
  6. Lisbon
  7. Lockport
  8. Montgomery
  9. Newark
  10. Pingree Grove
  11. Plainfield
  12. Plattville
  13. Round Lake
  14. Sugar Grove
  15. Union
  16. Yorkville

Want to find housing data for your community? Download U.S. Census housing data and use the Homes for a Changing Region data guide to analyze it.


Issues + strategies

Most communities have multiple submarkets within their boundaries. The issues facing each submarket as well as strategies tailored to address them are outlined below.

Submarkets with primary focus
Issue 3 7
Accessibility and visitability

Submarket 7

Improving accessibility and visitability can prepare communities for a growing senior population. A growing senior population raises concerns about whether submarket 7 communities are prepared as accessible and visitable places to live. As new housing is built or current housing is rehabilitated, attention should be given to make sure that housing will address the present and future needs of this population. Some submarket 7 exurban neighborhoods were built without important pedestrian infrastructure, like sidewalks and crosswalks. Figuring out how to retrofit such infrastructure into existing neighborhoods would also improve accessibility, as well as position communities to remain attractive as market preferences change.

Strategies (expand all)

Age-friendly neighborhoods Communities should create local amenities that will appeal to people of all ages, from young families to seniors.
Communities should create local amenities that will appeal to people of all ages, from young families to seniors. A community can best meet its social and economic demands by having a healthy balance of people from all age groups. Nevertheless, municipalities need to plan for amenities that can attract and retain residents. Neighborhood parks, public spaces and community art spaces such as Karcher Artspace Lofts in Waukegan and those created by Batavia, are only a few of the central elements of an age-friendly community. For seniors that want to live independently in the community, having access to services is vital. Municipalities should think about the development of senior housing/services complexes strategically, and ideally should locate them near transit stations and commercial areas. Such developments can be helped by specific transit oriented development ordinances like Chicago’s, which allow increased residential density and reduced parking requirements. Sunset Woods in Highland Park and Thomas Place in Glenview are great examples of developments that came to fruition because of strong collaboration between developers and municipalities. The Northwest Suburban Housing Collaborative’s Handyman Program is an innovative senior service program that connects seniors to low-cost maintenance services and helps them to live independently in their homes. Read more about age-friendly policies.
Value of housing planning Municipalities should invest in long-term planning to identify policies and tools that prepare its housing stock for the future.
Municipalities should invest in long-term planning to identify policies and tools that prepare its housing stock for the future. Via planning tools like the Homes for a Changing Region Toolkit, municipalities can better understand current and future housing needs in their communities and develop strategies to move toward a more “balanced” housing stock. Around the region, communities have been drawing on the principles of accessibility and sustainability to create healthier and safer housing.
Attracting younger families

Submarket 7

Exurban communities have an opportunity to attract younger families by striking the right balance between affordable homes and amenities. Younger families generally need affordable starter home price points in order to become new homebuyers. Additionally, providing amenities such as walkable neighborhoods, parks, and open spaces can help to meet the preferences of younger generations, such as increased interest in biking and walking and more compact home environments.

Strategies (expand all)

Age-friendly neighborhoods Communities should create local amenities that will appeal to people of all ages, from young families to seniors.
Communities should create local amenities that will appeal to people of all ages, from young families to seniors. A community can best meet its social and economic demands by having a healthy balance of people from all age groups. Nevertheless, municipalities need to plan for amenities that can attract and retain residents. Neighborhood parks, public spaces and community art spaces such as Karcher Artspace Lofts in Waukegan and those created by Batavia, are only a few of the central elements of an age-friendly community. Read more about age-friendly policies.
Inclusionary zoning Communities can use strong markets to create affordable housing.
Communities can use strong markets to create affordable housing. Inclusionary zoning efforts naturally work well in strong markets, leveraging the construction of new market rate units to add affordable units. Many communities in the region have adopted inclusionary zoning ordinances, including Chicago (ARO), Evanston, Highland Park, and Lake Forest.

Affordable requirements ordinance (ARO): Chicago adopted a new inclusionary housing ordinance in 2015. A number of stakeholders identified potential positives and negatives in the ARO. Yet, because the ordinance is so new, it remains to be seen how market rate developers will comply. Monitoring its implementation will help other communities understand whether it will serve as a model.
Land trusts Land trusts can provide affordable housing in perpetuity by owning land and leasing it to those who live in houses built on that land.
Land trusts can provide affordable housing in perpetuity by owning land and leasing it to those who live in houses built on that land. Land trusts, like those operating in Chicago and the North Shore, are often an effective tool in helping preserve currently affordable units due to a land trust’s unique ownership structure. When a land trust sells a unit to an owner, they only sell the improvements (i.e. the home), but not the land underneath. As a result, a household can purchase a home for substantially less than what it would ordinarily cost.
Repurpose and redevelop property Communities should evaluate existing zoning and take stock of existing infrastructure when making decisions about redevelopment.
Communities should evaluate existing zoning and take stock of existing infrastructure when making decisions about redevelopment. Overdeveloped and vacant retail areas can be rezoned for mixed-use developments or housing. When adding multi-family units near transit, municipalities should consider lower parking requirements to relieve congestion and encourage walkability. Mundelein’s Downtown Design Guidelines, Glenview’s Downtown Development Code, and Libertyville’s payment in lieu of required parking policy are all great examples of how to create a more efficient built environment.
Rethink unfinished planned unit developments The time is right to explore the future of stalled developments.
The time is right to explore the future of stalled developments. As stalled planned unit developments come back online, more diverse housing options should be included. Now that the market is recovering in many exurban areas of this submarket, municipalities should put some thought into planned unit developments that were never completed due to the housing downturn. Municipalities should consider supporting more diverse housing types to be built in these developments, including small-lot single family housing as well as multi-generational housing. HomeTown Aurora and Georgetown in Batavia are examples of developments that offer varied housing options.
Community resistance

Submarket 3

Community resistance can stymy new housing options. Despite the higher incomes for some submarket 3 households, developers do not report frequent community resistance issues relative to other submarkets. Some believe this is because of the greater mix of ages and incomes present in submarket 3. Others feel this is because many submarket 3 communities have a natural constituency of non-profits, community organizations, and residents who will support new development, including for low-and moderate-income households. A few mentioned the value of strong political leadership in setting the tone for a desire for balanced housing types and acceptance of people from across the income spectrum. That said, resistance in submarket 3 is less than in other areas, but not absent. Some projects do run into resistance due to concerns about parking, traffic, density, height, and income of occupants.

Strategies (expand all)

Community education Targeted efforts to build support for diversity of housing stock and people can help address community resistance.
Targeted efforts to build support for diversity of housing stock and people can help address community resistance. Many groups, including elected officials, government staff, non-profits, and citizens, have explored ways to build community support for new housing types and greater local diversity. Utilizing these models in submarket 3 can help address community resistance issues. Read more about the many different best practices.
Value of housing planning Using tools like Homes for a Changing Region can be valuable.
Using tools like Homes for a Changing Region can be valuable. In the midst of a strong market, it can be hard to find space to step back and think about over-arching issues. Yet, communities that undertake local housing planning, such as that done through Homes for a Changing Region, benefit from a clear vision of the types of housing needed by the community and can be less reactive to new proposals.
Growth creates opportunities

Submarket 7

Growth creates an opportunity to create a more “balanced” housing stock, which can better accommodate households of various sizes and income levels. Whether in the core of the region or at the edges, submarket 7 is growing. That growth creates opportunities. In newly developed communities, new construction creates the chance to create complete communities from the start, with a balanced housing supply that will be resilient to changing housing demand. At the core, this means understanding whether the housing that is being added creates opportunities from across the income spectrum. A more “balanced” housing stock can better accommodate households of various sizes and income levels. While most of the housing stock in the exurban areas of this submarket consists of newer single-family homes, communities can take a new approach that encourages a greater mix of housing types. In Chicago’s downtown core, the City can evaluate the opportunities that new development has created for households across the income spectrum in order to forge a path forward that increases housing equity.

Strategies (expand all)

Community education Targeted efforts to build support for diversity of housing stock and people can help address community resistance.
Targeted efforts to build support for diversity of housing stock and people can help address community resistance. Many groups, including elected officials, government staff, non-profits, and citizens, have explored ways to build community support for new housing types and greater local diversity. Utilizing these models in submarket 7 can help address community resistance issues. Read more about the many different best practices.
Inclusionary zoning Communities can use strong markets to create affordable housing.
Communities can use strong markets to create affordable housing. Inclusionary zoning efforts naturally work well in strong markets, leveraging the construction of new market rate units to add affordable units. Many communities in the region have adopted inclusionary zoning ordinances, including Chicago (ARO), Evanston, Highland Park, and Lake Forest.

Affordable requirements ordinance (ARO): Chicago adopted a new inclusionary housing ordinance in 2015. A number of stakeholders identified potential positives and negatives in the ARO. Yet, because the ordinance is so new, it remains to be seen how market rate developers will comply. Monitoring its implementation will help other communities understand whether it will serve as a model.
Land trusts Land trusts can provide affordable housing in perpetuity by owning land and leasing it to those who live in houses built on that land.
Land trusts can provide affordable housing in perpetuity by owning land and leasing it to those who live in houses built on that land. Land trusts, like those operating in Chicago and the North Shore, are often an effective tool in helping preserve currently affordable units due to a land trust’s unique ownership structure. When a land trust sells a unit to an owner, they only sell the improvements (i.e. the home), but not the land underneath. As a result, a household can purchase a home for substantially less than what it would ordinarily cost.
Repurpose and redevelop property Communities should evaluate existing zoning and take stock of existing infrastructure when making decisions about redevelopment.
Communities should evaluate existing zoning and take stock of existing infrastructure when making decisions about redevelopment. Overdeveloped and vacant retail areas can be rezoned for mixed-use developments or housing. When adding multi-family units near transit, municipalities should consider lower parking requirements to relieve congestion and encourage walkability. Mundelein’s Downtown Design Guidelines, Glenview’s Downtown Development Code, and Libertyville’s payment in lieu of required parking policy are all great examples of how to create a more efficient built environment.
Rethink unfinished planned unit developments The time is right to explore the future of stalled developments.
The time is right to explore the future of stalled developments. As stalled planned unit developments come back online, more diverse housing options should be included. Now that the market is recovering in many exurban areas of this submarket, municipalities should put some thought into planned unit developments that were never completed due to the housing downturn. Municipalities should consider supporting more diverse housing types to be built in these developments, including small-lot single family housing as well as multi-generational housing. HomeTown Aurora and Georgetown in Batavia are examples of developments that offer varied housing options.
Value of housing planning Municipalities should invest in long-term planning to identify policies and tools that prepare its housing stock for the future.
Municipalities should invest in long-term planning to identify policies and tools that prepare its housing stock for the future. Via planning tools like the Homes for a Changing Region Toolkit, municipalities can better understand current and future housing needs in their communities and develop strategies to move toward a more “balanced” housing stock. Around the region, communities have been drawing on the principles of accessibility and sustainability to create healthier and safer housing.
Very strong market

Submarket 3

Strong markets come with benefits and issues. Submarket 3 neighborhoods are among the strongest housing markets in the region. Such strength allows the market to address housing issues that many other areas struggle with, including an older housing stock. Yet, that strong demand makes it challenging to preserve housing opportunities for current residents. Price and rent increases can drive out existing residents. Demand for smaller rental units is strong enough relative to sales prices that developers are de-converting condominiums into apartments. Demand for single-family homes is so much stronger than rentals that developers tear down multiple rental units to build a smaller number of single-family homes. Market specialists think that demand will not abate in the near future since these areas are often close-in with good job and transit access and a form attractive to many households.

Strategies (expand all)

Affordability through reduced parking Reducing parking requirements can help to keep housing costs attainable.
Reducing parking requirements can help to keep housing costs attainable. For communities looking to preserve affordability or help create new housing at more affordable prices, reducing or eliminating parking requirements can help. Higher sales prices or rents must support every additional parking space required by a municipality. The more parking required, the more expensive the development. In Chicago, the Transit-Oriented Development Ordinance (TOD) reduces or eliminates parking requirements near transit while density bonuses for developers who take advantage of the provisions. Many believe that this requirement has helped amplify the rental development boom in strong markets like Logan Square and the West Loop, opening up previously undevelopable parcels for action. In Libertyville, developers can cash-out their parking requirements, paying the village a fee in lieu of parking not provided on-site.
Inclusionary zoning Communities can use strong markets to create affordable housing.
Communities can use strong markets to create affordable housing. Inclusionary zoning efforts naturally work well in strong markets, leveraging the construction of new market rate units to add affordable units. Many communities in the region have adopted inclusionary zoning ordinances, including Chicago (ARO), Evanston, Highland Park, and Lake Forest.

Affordable requirements ordinance (ARO): Chicago adopted a new inclusionary housing ordinance in 2015. A number of stakeholders identified potential positives and negatives in the ARO. Yet, because the ordinance is so new, it remains to be seen how market rate developers will comply. Monitoring its implementation will help other communities understand whether it will serve as a model.
Land trusts Land trusts can provide affordable housing in perpetuity by owning land and leasing it to those who live in houses built on that land.
Land trusts can provide affordable housing in perpetuity by owning land and leasing it to those who live in houses built on that land. Land trusts, like those operating in Chicago and the North Shore, are often an effective tool in helping preserve currently affordable units due to a land trust’s unique ownership structure. When a land trust sells a unit to an owner, they only sell the improvements (i.e. the home), but not the land underneath. As a result, a household can purchase a home for substantially less than what it would ordinarily cost.
Preservation and expansion of affordable housing Preserving affordable housing options can help existing residents stay in changing neighborhoods.
Preserving affordable housing options can help existing residents stay in changing neighborhoods. Dedicated programs designed to preserve lower cost units can help ensure that even as a neighborhood changes, existing residents have an opportunity to remain. For example, Chicago passed the Single-room Occupancy Preservation Ordinance in 2014, which helps non-profits compete with private firms to preserve a targeted unit type. Similarly, the work in Albany Park highlights the value of targeted work by local non-profits to preserve units in areas on the cusp of rapid change.

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