The Basic Math of Rental Affordability

Every conversation about rental affordability must begin with basic math. In Chicago, the reality facing independent housing providers is stark: roughly 90 cents of every dollar collected in rent is already spent before it ever reaches an owner's bank account.

Operating a residential building comes with unavoidable, escalating baseline costs. Cook County property reassessments have driven real estate taxes to unprecedented levels. Insurance premiums for older, naturally occurring affordable buildings have roughly doubled since 2019. Routine repairs, materials, and skilled labor rates continue to rise alongside rising city utility bills.

When City Hall introduces the proposed "Housing Affordability" Ordinance (PRO) with more than 100 new rules, compliance burdens, and departmental fees, these costs do not vanish into thin air. Because independent owners operate on paper-thin margins, artificial costs imposed by new city mandates directly increase the cost of maintaining a home.