SDA Pushes to Bring Back ‘Missing Middle’ Housing

Illinois is facing a severe housing shortage. A study published in June 2025 by the University of Illinois showed home prices have jumped 37% over five years, active listings have dropped 64%, and new construction permits have declined 13%.

In response, the Southland Development Authority (SDA) is working to fill the void and make housing more affordable for the middle class.

The key to unlocking the problem may be found in “missing middle housing”.

SDA Leads on Legislation

A term gaining momentum, “missing middle housing” refers to small-scale, multi-unit buildings. Think: duplexes, triplexes, and four-to-nine-unit properties. These are smaller multi-family buildings that fit naturally into neighborhoods that have traditionally been zoned for single-family homes.

Bo Kemp, the SDA’s CEO, is taking the lead by forming partnerships to address the issue directly in 2026. First, under his leadership, the SDA is working with like minded mayors to find local solutions that can increase the pipeline of duplexes and other “middle” housing.

Secondly, he is proactively reaching out to state leadership for their support. To that end, he has secured support from Illinois State Senator Napoleon Harris, who will sponsor legislation to bolster the production of small scale “middle” housing.

“This is about creating housing options that match the realities people are facing,” Kemp said. “If we want to reverse population loss and make the Southland competitive, we need attainable housing near jobs, near transit, and within established neighborhoods. Missing middle housing gives communities a practical way to do that.”

If enacted, the legislation could provide new tools and incentives to encourage development near transit corridors - especially along the Metra Electric line. The Metra Electric line runs through numerous south suburban communities, all of which stand to benefit in a major way.

“I see almost every community having some benefit from this,” he said. “Affordability is a challenge. This is one way to respond to it.”

Reviving the Production of Housing for Middle Class Families

According to Nick Greifer, the SDA’s Municipal Economic Development Director, this type of housing was once common throughout Chicago and many older suburbs.

“Fifty or sixty years ago, this kind of housing was built extensively,” Greifer said. “But over the last generation, it has largely disappeared from the production pipeline.”

There are two ways to understand what is “missing.”

First, the product itself has become rare. It’s often restricted by zoning rules that favor single-family dwellings.

Second, Greifer explained, the price point has become elusive or even out of reach – e.g., for families looking for their first “starter home.” Smaller multi-unit properties historically offered more attainable rent or ownership opportunities compared to single-family homes. And, as everyone unfortunately sees, those have become increasingly expensive. Pretty much everywhere.

Illinois Governor J.B. Pritzker took this issue head on in his annual address to the state. Unveiling the Building Up Illinois Developments (BUILD) plan, Governor Pritzker will push for more housing development by establishing statewide zoning standards that facilitate “missing middle” housing types. Other states, including Arizona, have already adopted similar measures.

The SDA has and will continue to work in this space.

• I't’ll work with supportive legislators like Senator Harris to create new municipal tools so that mayors can start to address the problem in their own towns.

• It’s expanding proven pilot programs like SDA’s Harvey Housing Initiative which has preserved many “middle housing” structures (and single family) through targeted renovations in Harvey.

• Through partnerships with the South Suburban Land Bank Development Authority (SSLBDA), it is forming more alliances with the 45 towns in the Southland region. More alliances, activated through intergovernmental agreements, will allow the SDA/Land Bank collaborations to pick up the cadence of home re-investment.

“We have been supportive of this type of housing for a long time,” Greifer said. “Now the conversation is about scaling it up.”

About the Southland Development Authority

The Southland Development Authority, a not-for-profit economic development organization, is committed to driving equitable and sustainable economic growth in the south suburbs of Chicago. Through innovative programs, strategic partnerships, and impactful direct investments, the SDA is building a vibrant, inclusive economy that drives wealth growth for individuals, businesses and municipalities. Combined with the benefits of the South Suburban Land Bank and the Monarch Fund, the SDA serves as a model for regional development.