Chicago Developers Are Adding Units—And New State Policies Could Accelerate It

In Uptown, a small construction project is quietly reflecting a much bigger shift happening across Illinois.

Developer Nick Serra is standing on what used to be the roof of a two-story building, now being converted into a new third-floor apartment. Once complete, the building will grow into a six-unit property, designed to house significantly more residents than a typical single-family conversion.

“In many cases, a project like this would mean turning the building into a single-family home,” Serra said. “Versus, you know, two people and their golden retriever.”

That contrast is exactly what housing advocates have been pushing for—more units, not fewer, especially in neighborhoods where demand continues to outpace supply.

A Shift Toward Adding Density, Not Removing It

Instead of tearing buildings down or converting them into single-family homes, developers like Serra are choosing to build up and add units. Over the past five years, he’s completed around two dozen similar projects, often working within tight zoning limits.

The challenge has always been the same: zoning restrictions.

In many parts of Chicago, especially on the North Side, rules limit how many units can be built on a property. That makes projects like this harder to execute, even when there’s clear demand for more housing.

What Governor JB Pritzker Is Proposing

That’s where new statewide proposals could change the game.

Governor JB Pritzker is advancing a housing plan focused on easing zoning restrictions and allowing more “missing middle” housing, things like duplexes, triplexes, and four-flats, in areas that have traditionally been limited to single-family homes.

The proposal would introduce statewide standards, meaning properties that meet certain criteria, like a minimum lot size of around 5,000 square feet, could support more units without going through lengthy rezoning processes.

In some cases, that could allow buildings with up to eight units by right, depending on the size of the property.

More Flexibility for Existing Properties

Another key part of the plan is the legalization of accessory dwelling units (ADUs) statewide. These are smaller secondary units, often called “granny flats,” that can be added to existing residential properties.

The initiative, tied to the broader BUILD (Building Up Illinois Developments) program, is designed to make it easier to expand existing housing stock, not just build new developments from the ground up.

That’s exactly what Serra’s Uptown project represents—adding density to a building that’s already there, instead of replacing it entirely.

Funding to Support Growth

The proposal also includes about $250 million in funding, aimed at making these projects more feasible:

$100 million for infrastructure to support denser housing
$100 million for developments that lack access to private capital
$50 million for affordable housing programs through the Illinois Housing Development Authority

The goal is to address what’s estimated to be a 227,000-unit housing shortage across Illinois by 2030.

Pritzker has framed the approach as incremental growth, saying progress will come “city by city, town by town, neighborhood by neighborhood, block by block.”

Why This Matters in Neighborhoods Like Uptown

What’s happening on Serra’s project is small in scale, but it reflects a much bigger idea.

Instead of relying only on large developments, this approach focuses on adding housing in smaller, more flexible ways, especially in neighborhoods that are already built out.

And in places like Uptown, where demand is strong and available land is limited, those types of projects could become a much bigger part of the housing conversation moving forward.

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