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Chicago Launches "Missing Middle" Housing Project to Address Affordability Crisis

  //house-home.news-articles.net/content/2026/01/0 .. ing-project-to-address-affordability-crisis.html
  Published in House and Home on Wednesday, January 7th 2026 at 0:02 GMT by FOX 32

Chicago Launches "Missing Middle" Housing Project in North Lawndale

The City of Chicago has introduced a new initiative aimed at addressing the city's affordable housing shortage, particularly in neighborhoods that have seen significant gentrification. The "Missing Middle" housing project, launched in the North Lawndale neighborhood, seeks to provide more affordable housing options for middle-income residents who are being priced out of their communities.

The project, announced by Mayor Lori Lightfoot and Chicago Housing Authority (CHA) officials, aims to create a more diverse and inclusive community in North Lawndale, an area that has seen a surge in new developments, but at a cost to long-time residents. The neighborhood has experienced significant gentrification in recent years, with many low-income and minority residents facing displacement due to rising rents and property values.

The "Missing Middle" initiative is designed to fill a critical gap in the city's housing market, where there is a lack of affordable options for middle-income residents. According to CHA officials, the project will provide financing and technical assistance to developers who build housing units that are affordable to households earning between 60% and 120% of the area median income.

The program will offer a range of incentives, including low-interest loans, grants, and tax abatements, to encourage developers to build more affordable housing units in North Lawndale and other targeted neighborhoods. In exchange, developers will be required to commit to keeping a portion of the units affordable for a set period.

CHA officials say that the program is designed to be flexible, allowing developers to propose a range of housing types, from apartments to single-family homes, as long as they meet the affordability requirements. The program will also prioritize projects that incorporate community engagement and outreach, ensuring that residents have a say in the development process.

According to a report by the [ Chicago Sun-Times ], the North Lawndale neighborhood has seen a significant increase in housing costs in recent years, with the median home price rising by over 20% between 2015 and 2020. This has made it difficult for long-time residents to afford to stay in the neighborhood, leading to concerns about displacement and community cohesion.

The "Missing Middle" initiative is part of a broader effort by the City of Chicago to address the city's affordable housing crisis. In 2019, the city launched the [ Chicago Home Buyer Assistance Program ], which provides down payment assistance and other incentives to help low- and moderate-income residents purchase homes.

The program has also been informed by a comprehensive analysis of the city's housing market, which found that there is a significant gap in the availability of affordable housing options for middle-income residents. According to a [ report ] by the Chicago Housing Authority, the city has a shortage of over 100,000 affordable housing units, with the majority of those units needed in neighborhoods like North Lawndale.

In addition to the "Missing Middle" initiative, the City of Chicago has also launched a number of other programs aimed at promoting affordable housing and community development. These include the [ Chicago Community Land Trust ], which provides financing and technical assistance to community-led development projects, and the [ Neighborhood Planning ] program, which works with residents and stakeholders to develop comprehensive plans for neighborhood development.

The success of the "Missing Middle" initiative will depend on a number of factors, including the level of community engagement and participation, the availability of funding, and the effectiveness of the program's design and implementation. However, with the right approach, the program has the potential to make a significant impact on the availability of affordable housing options in North Lawndale and other neighborhoods, and to help promote more inclusive and equitable community development.

In conclusion, the "Missing Middle" housing project launched in North Lawndale is a critical initiative aimed at addressing the city's affordable housing crisis. By providing financing and technical assistance to developers, and prioritizing community engagement and outreach, the program has the potential to make a significant impact on the availability of affordable housing options in the city. As the program moves forward, it will be important to monitor its progress and effectiveness, and to make adjustments as needed to ensure that it is meeting its goals and objectives.