Chicago Advances New Housing Projects in Avondale, McKinley Park, Streeterville, and East Garfield Park

CHICAGO — Several Chicago neighborhoods could soon see new housing as city officials move forward with projects in Avondale, McKinley Park, Streeterville, West Town, and East Garfield Park.

The approvals include a mix of rental townhomes, apartments, affordable units, ground-floor retail, and a hotel-to-residential conversion near Michigan Avenue. The projects still need final approval from the full Chicago City Council, but they represent another sign that housing demand is pushing development across both established and emerging neighborhoods.

Avondale Project Would Add 105 Homes Near California Avenue

The old proposal for 3231-65 N. California Ave./2752-62 W. Melrose St. is compared with the new one shared with neighbors April 28, 2026, showing less units but more townhomes.

In Avondale, a proposed development at 3231-65 N. California Ave. near Melrose Street would bring 105 housing units to the neighborhood.

The plan includes 40 rental townhomes and 65 apartments, down from an earlier version with 152 units. The change came after community feedback raised concerns about density, parking, and traffic.

The updated proposal includes:

40 three-story rental townhomes
65 apartments
107 parking spaces
21 affordable units
A mix of family-sized housing options

The townhomes are expected to include three to four bedrooms and two-car garages, with rents starting around $6,000. Market-rate apartment rents are expected to begin around $2,500 to $3,000, depending on layout.

For Avondale, the project reflects a larger trend: buyers and renters want more housing choices in neighborhoods with transit access, local restaurants, and proximity to Logan Square, Irving Park, and the North Branch corridor.

McKinley Park Could See a Major Mixed-Use Development

On the Southwest Side, McKinley Park could see a large mixed-use project near the Ashland Orange Line station.

The proposed development at S. Justine Street would replace a vacant manufacturing building with new housing, retail, and townhomes.

Plans include:

199 residential units
Nine townhomes
Nearly 16,000 square feet of retail space
42 affordable units
165 parking spaces
A mix of one-, two-, and three-bedroom homes

The location near the Orange Line is important because it supports transit-oriented growth in a neighborhood looking to reconnect older industrial areas with new housing and local business activity.

For buyers watching McKinley Park, this type of project could help bring more neighborhood amenities, foot traffic, and long-term residential interest.

Streeterville Hotel Could Become 221 Apartments

In Streeterville, a hotel near Michigan Avenue could be converted back into residential use.

The project would transform the Sonesta ES Suites at 201 E. Walton Place into a 221-unit apartment building. The building was originally constructed as apartments in the 1950s before becoming a hotel in the 1980s.

The plan includes:

221 renovated apartments
Existing 72 parking spaces
New resident amenities
Updated street-level improvements
Continued residential momentum near Michigan Avenue

This proposal fits into a broader Chicago trend of converting older hotels and office buildings into housing, especially in areas where demand for downtown living remains strong.

For Streeterville, the conversion would add more housing near the lakefront, shopping, dining, hospitals, transit, and the Magnificent Mile.

New Apartments Planned Near Johnny’s Icehouse West

In East Garfield Park, a proposed development at 2553-2565 W. Madison St. would add 42 apartments across from Johnny’s Icehouse West.

The project would be built on a vacant lot currently owned by the city and would include 20 interior parking spaces.

This is a smaller project compared with Avondale and McKinley Park, but it matters because East Garfield Park has long needed more residential investment. New housing along Madison Street could help support efforts to bring more density, activity, and neighborhood-serving development back to the corridor.

West Town Could Add Two Mixed-Use Buildings

Additional housing is also moving forward in West Town, where two proposed mixed-use buildings at 2315 and 2323 W. Grand Ave. would bring a combined 68 apartments and ground-floor retail.

Projects like this help fill in commercial corridors with new residents while keeping retail space active at street level.

For buyers and renters, that kind of mixed-use development can make a neighborhood feel more walkable and convenient over time.

The Buyer Takeaway

For buyers, these development approvals are worth watching because new housing can change the feel of a neighborhood over time.

More residents can support better retail, stronger restaurants, improved walkability, and greater demand for nearby homes. Even when a project is rental-focused, it can still influence the larger market by bringing new energy and investment to the area.

The key is understanding which neighborhoods are gaining momentum and how new development may affect long-term livability.

Looking to Buy Near Chicago’s Next Growth Areas?

Browse available homes and condos in Avondale, McKinley Park, Streeterville, West Town, East Garfield Park, and nearby Chicago neighborhoods, or connect with the Cory Tanzer Group at Option Premier for expert guidance on areas gaining new housing, transit access, and long-term development momentum.

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