Good Intentions, Bad Results: Chicago’s 2025 Real Estate Policies
When “Help” Hurts the Market
In 2025, Chicago’s real estate scene will have become a case study in good intentions gone sideways. Reforms meant to help buyers, from anti-gentrification rules to NAR commission fallout, have instead created new barriers. As I’ve seen on the ground, these policies often miss the people who actually do the work.
The Disconnect Between Policy and Practice
Housing laws aimed to fix affordability, transparency, and access. But in the rush to legislate change, lawmakers left out the people who navigate the market daily. The result? A patchwork of reforms that often burdens the very people the laws intend to help.
Why Skipping Industry Experts Backfires
Every few years, regulators introduce sweeping rules under the banner of “buyer protection.” But each rollout echoes the same issue: lack of industry input.
As I often point out, “When the government legislates real estate, they need to speak to those who do it every day.” That conversation still hasn’t happened. Instead, these reforms have created confusion, stalled deals, and slowed development across Chicago.
Case Studies: Reforms That Backfired
Case Study #1: The Anti-Gentrification Ordinance That Froze Growth
Chicago’s anti-gentrification ordinance aimed to shield residents from displacement. In practice, it’s paralyzed revitalization.
The ordinance’s boundaries shift quarterly, creating developer uncertainty. Add unpredictable taxes and resale restrictions, and you have a market stuck in limbo.
Chicago lawmakers have amended the anti-gentrification ordinance four times. I don’t even know where it stands now.
Developers have pulled back, reducing the very housing supply Chicago needs. As supply tightens, rents and prices rise, undercutting the neighborhoods policymakers hoped to protect.
Case Study #2: The NAR Commission Settlement Fallout
The National Association of Realtors’ 2024 settlement banned sellers from listing buyer-agent commissions on the MLS. The association promoted it as a win for transparency, but it backfired.
Before, sellers typically offered 2–3% to buyer agents. Now, agents must negotiate fees within offers, adding stress to every transaction. First-time buyers, in particular, are surprised to learn they may have to pay their agent directly.
Instead of helping buyers, the rule gave sellers all the leverage. Transparency hasn’t improved. It’s just gone underground.
Case Study #3: ADU Chaos and Missed Opportunity
Accessory Dwelling Units (ADUs), such as “granny flats” or coach houses, aim to expand affordable housing. Chicago’s new ordinance, passed this fall, should have been a slam dunk.
Instead, it’s tangled in red tape. The city passed the ordinance without consulting realtors, attorneys, or anyone involved in property transactions.
Inconsistencies across wards, overlapping permits, and unclear financing rules have deterred small landlords from participating. A promising idea to add housing density has stalled, stifling the affordability it aimed to deliver.
A Tale of Two Investors
Picture two developers in 2025. One dives into a South Side project, lured by “anti-displacement” incentives. Six months later, he’s mired in revised tax codes and permit delays.
The other waits. Tracks the shifting ordinances. Buys strategically.
By 2026, the patient investor is ready to launch, while regulations keep others in purgatory.
The difference isn’t luck. It’s a strategy. In policy chaos, those who adapt fastest often come out ahead.
Policy Intentions vs. Market Reality
| Policy Goal | Reality |
| Make housing affordable | Increased costs, slower development |
| Empower buyers | Shifted costs onto them |
| Increase supply | Stifled permits and confidence |
| Simplify processes | Created legal confusion and gray zones |
The market rewards those who can navigate complexity faster than policymakers can simplify it.
Looking Ahead: Forecast and Strategy
The 2026 Forecast: Market Recalibration
2026 will likely bring course corrections. Watch for:
- Clearer buyer-agent agreements
- Localized ADU revisions
- Developer lobbying for performance-based incentives
Buyers and sellers will rely more on trusted agents rather than government guidance. In times of confusion, experience becomes an advantage.
Strategic Moves for 2025–2026
| Stakeholder | Strategic Move |
| Buyers | Clarify commission terms early; budget for agent fees. |
| Sellers | Price based on comps — not policy panic. |
| Developers | Focus on stable-zoning areas for now. |
| Agents | Document inefficiencies; feedback shapes future rules. |
The Greco Take
I’m all for affordable housing, but they’re not going about it the right way.”
Chicago doesn’t lack talent. It lacks translation. Policymakers mean well, but practitioners know how markets work.
The solution isn’t more regulation. It’s a collaboration.
Turn Policy Chaos Into Advantage
Real estate is too complex for spreadsheets to fix. Until lawmakers involve seasoned professionals, Chicago’s “fixes” will keep disrupting what works.
At The MG Group, our team helps buyers, sellers, and developers navigate the market amid shifting rules. From clarifying commissions to identifying stable-zoning opportunities, we provide the insight you need to make confident decisions.
Contact us today to turn policy chaos into a strategic advantage and stay ahead in Chicago’s ever-changing market.
