Pritzker Proposes Statewide Zoning Laws to Spur Homebuilding

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Illinois Governor JB Pritzker will propose a statewide zoning law in his State of the State address that would drastically limit the authority local governments have to control the types of housing structures that can be built on residential land. The plan includes legalizing accessory dwelling units, establishing statewide timelines for inspections and reviews, and providing $250 million in capital funding for infrastructure grants, middle housing development, and first-time homebuyer assistance.

Why it matters

The proposal seeks to address Illinois' severe housing shortage, which has driven up home prices and reduced new construction. By preempting local zoning rules, the plan aims to spur more 'middle housing' development like duplexes and fourplexes that can increase density and affordability.

The details

Pritzker's 'Building Up Illinois Developments' (BUILD) plan would allow multi-unit housing by right on residential lots over 2,500 square feet, with a sliding scale of up to 8 units allowed on the largest lots. It would also legalize accessory dwelling units on all residential properties and establish statewide timelines for permit reviews and inspections. The $250 million in funding would go towards site preparation grants, middle housing development, and homebuyer assistance.

• Pritzker will propose the plan during his State of the State address on Wednesday, February 18, 2026.
• The proposal will require approval from the Illinois General Assembly.

What’s next

The specific lot-size thresholds and unit allowances in the plan will be subject to negotiations with the Illinois legislature.