Promoting Sustainable Homeownership
Homeownership can be a powerful way to build housing stability and security, as well as household wealth. For people who have faced systemic barriers to homeownership, primarily people of color, owning a home can help build generational wealth and narrow the racial wealth gap. While homeownership is not the right choice for everyone, it remains an important pathway to stability and opportunity for many Illinois families.
Yet too many Illinoisans are unable to access pathways to affordable , sustainable homeownership. Many households lack sufficient savings for down payments and closing costs, or need to repair their credit before they can qualify for loans.
On top of this, the homebuying process itself is complex, and without trusted guidance, buyers are often exposed to confusing terms, loans they cannot actually afford, or predatory lending practices that strip wealth rather than build it. Once someone becomes a homeowner, there are the costs and knowledge required to physically maintain the property, the need to pay property taxes, utilities and insurance, as well as fulfill all the other responsibilities of homeownership.
The lack of supply of affordable homes to purchase is also a key issue limiting affordable homeownership. A 2025 analysis from the Illinois Economic Policy Institute and Project for Middle Class Renewal at University of Illinois at Urbana-Champaign concluded, as others have, that the underbuilding of new affordable homes has resulted in low vacancy rates and limited for-sale inventory. The impact includes higher prices for homebuyers and a drag on Illinois’ economic growth.
Addressing these challenges requires a comprehensive approach–for example, expanding access to affordable and transparent financial products, increasing the supply of affordable starter homes, and ensuring that prospective buyers have access to reliable homeownership education. With these supports in place, homeownership can deliver on its promises of stability, safety, and long-term opportunity.
What Does It Cost To Own A Home In Illinois?
As of 2024, according to research by the Illinois Economic Policy Institute and University of Illinois at Urbana-Champaign, Illinois’ average home value was $264,000, an increase of by 37% over five years.
Higher home values mean higher mortgages and fewer homeownership opportunities for low-income households. The same report finds that 22.7% Illinois of homeowners are “cost-burdened,” or spending more than 30% of their income on the cost of mortgage payments, property taxes, utilities, and other housing costs. These high costs are coupled with fewer opportunities to purchase homes. The number of active listings has decreased 64% from 2019, making costs higher and homeownership less attainable for many Illinoisans.
Meanwhile, the costs of maintaining a home, and access to loans for home improvement, can be very challenging for low-income households. A 2025 report by the Woodstock Institute finds that demand for home improvement loans is rising, but denials outpace originations in Cook County and Chicago for most applicants; it concludes that systemic barriers in lending practices require both policy intervention and financial institution engagement to protect housing stability and resilience.
Why Racial Justice Matters
Homeownership rates reflect the racial wealth gap, and to close this, we need better public policies and stronger investment in all our communities. According to a report by the National Fair Housing Alliance, in 2024, the white homeownership rate was 60% higher than the Black homeownership rate and 52% higher than the Latino homeownership rate. The same report highlights that as of 2021, 28.9% of Black homeowners, 26.8% of Latino homeowners, and 25.1% of Asian homeowners are cost-burdened compared to 19.4% of white homeowners.
The Importance of Homebuyer Education & Housing Counseling
While homeownership is a pathway to stability and wealth, millions of buyers enter the process without the information needed to make sound financial decisions. First-time, low- and moderate-income households are especially vulnerable to misinformation, high-rate loans, and increased foreclosure risk.
Housing counseling helps address these challenges by equipping buyers with guidance from unbiased experts. Counseling supports individuals and families in understanding affordability, improving credit readiness, comparing mortgage options, and preparing for the long-term costs of homeownership. Research consistently shows that homebuyers who receive pre-purchase counseling are more likely to choose sustainable mortgages, remain in their homes longer, and experience lower rates of delinquency and foreclosure.
Despite its proven impact, access to housing counseling remains limited. Many households move forward without fully understanding their debt obligations, long-term costs, or available options. Chronic underinvestment and administrative burdens further constrain the capacity of housing counseling agencies to meet demand.
Strengthening the Housing Counseling Field
Housing Action Illinois works to strengthen and modernize the housing counseling field so more homebuyers can access timely, effective support. We train new counselors and create pathways into the housing counseling workforce, provide ongoing professional development and technical assistance for established counselors, and share guidance and resources as a HUD-Approved Housing Counseling Intermediary.
Our work on this front has expanded nationwide; our Training Center, Intermediary network, and Housing Counseling Corps programs have all grown beyond Illinois and even the Midwest. This broader work includes a recent initiative to leverage technology and expand access to counseling through My Path to Home, a national web portal that connects consumers directly to trusted housing counseling agencies, as well as to standardize housing counseling data using national mortgage industry standards. This shared framework enables counselors, lenders, and servicers to communicate more effectively, reduces duplication and transaction costs, and improves outcome tracking.
We also advocate at the state and federal levels for the resources and policies needed to effectively equip housing counseling agencies and expand access to pathways to sustainable homeownership.