Illinois Housing Crisis: Rising Property Taxes Make Homes Unaffordable

Illinois has been identified as the least affordable state for housing in the Midwest, with alarming statistics revealing that one in three households allocate over 30% of their income to housing costs. According to data from the U.S. Census Bureau, analyzed by the Illinois Policy Institute, at least 15% of households are classified as “severely burdened,” spending more than 50% of their income on housing. This situation is exacerbated by rising property taxes, which have increased by an average of $756 since 2019, making Illinois home to the second-highest property tax rates in the nation. The financial strain on homeowners is significant, with the average property tax bill now reaching approximately $5,055—more than double the national average of $2,457. Lawmakers like Caulkins express concern that these rising costs are driving population decline and deterring new businesses from establishing themselves in Illinois. He attributes the ongoing crisis to the policies of the Democratic supermajority in the Illinois General Assembly, which he claims has created a “$52 billion piggy bank” without facing serious electoral challenges. Recent polling indicates that over 50% of voters cite high taxes as their primary reason for considering leaving the state. Caulkins warns that as more residents depart, the tax burden on those who remain will only increase. He advocates for a cap on property taxes as a necessary measure to stabilize the housing market and alleviate the financial pressure on Illinois families.