The State of Renters in the

City of Chicago

A Report By

The Metropolitan Tenants Organization

Ann K. Barnds, MUPP and Mirabai Auer, MUPP
Acknowledgments
MTO would like to acknowledge those who made this report possible.

First and foremost, we express our sincere gratitude to all of MTO’s Hotline Volunteers. While the number
over the past 15 years is too great to name each individually, keeping the MTO Tenants-Rights Hotline open
is, and has always been, dependent upon their dedication and commitment. On behalf of MTO and renters
across the City of Chicago, we are truly grateful for your generous gifts of time and talent.

We also thank the City of Chicago, which provided start-up funding for the Hotline and has continued to
generously support the work of the Hotline throughout its 15 years of service, the foundations that have
supported the Hotline since its inception, and current Hotline funders, The Albert Pick, Jr. Fund, Woods Fund
of Chicago, the Marguerite Casey Foundation and the McCormick Foundation.

MTO also recognizes with gratitude the important contributions of its staff and volunteer Board of Directors,
many of whom have spent countless hours answering calls and training new volunteers for the Hotline.
We especially want to acknowledge the work of the Hotline staff, Rebecca McDannald, David Wilson, and
Santiago Castrillion.

Finally, MTO would like to acknowledge all of the renters who have shared their stories and struggles with us
over the years. Your willingness to claim your rights helps to generate change and impact public policy by
calling attention to issues facing renters across the city.

To all of you, we are truly grateful.

The Metropolitan Tenants Organization

2150 S Canalport, Suite 2-B2
Chicago,IL 60608
www.tenants-rights.org

Data Graphics and Analysis Prepared By:

3110 N Bernard
Chicago, Illinois 60618
www.joinandrelate.com

i
Letter from the Executive Director
Recently, a renter called The Metropolitan Tenants
Organization’s (MTO) citywide Hotline because
despite repeated verbal requests, her landlord
was unresponsive to her requests for repairs. Her
apartment needed major plumbing work. After learning
about her rights from a Hotline counselor, she wrote
a letter to her landlord detailing the problems and
informing him of his obligations and her rights should
he fail to fulfill them. Within days of the landlord’s
receipt of the letter, he was busy making repairs.
With funding from the City of Chicago, MTO’s
Hotline has been a key resource to the nearly 1.3
million renters living in Chicago. It has helped many
thousands of renters find constructive ways to address
problems with their rental housing. The information
renters have received has allowed them to play an
important part in preserving Chicago’s housing stock.
The Hotline has also served as MTO’s eyes and ears
into the lives of renters. Since its inception in 1994,
the MTO Hotline has fielded more than 150,000 calls,
carefully collecting information and tracking data
on housing issues. In collecting this data, Hotline
counselors have spent thousands of hours listening
to the stories told by Chicago’s renters. The story of
renters in Chicago is that they are increasingly facing
unpredictability in the rental housing market, financial
stress, and deteriorated living conditions. Their lives
are and have been in tumult for years.
In the past decade, market changes – such as
condominium conversions, which displaced thousands
of renters – have taken their toll, making the lack
of stable, affordable housing for renters a critical
issue. We decided to commission this report prior to
the collapse of the housing bubble and crisis in the
financial markets in fall 2008. But these events have
brought about a broader recognition of what low- and
moderate-income renters have known all along – the
problems in Chicago’s housing market are systemic.
For years renters have needed and wanted a new
national housing policy that balances homeownership
and rental housing. Part of the reason their problems
have persisted and escalated is that policy makers
have failed to recognize the importance of stable
rental housing and have an insufficient understanding
of the perspective of renters.
Data from the MTO Hotline contextualizes renters’
calls relative to Census data on Chicago renters
and rental housing stock. In combination, these
data sources provide deep insight into the current
environment facing renters, and the interconnection
of renters and homeowners, renters and
neighborhoods, renters and thriving communities. By
bringing to light the factors impacting renters’ ability
to access and afford stable housing, these research
findings underscore the need for policy changes.
We would like to thank all of the volunteers whose
countless hours of assistance and advocacy for
and with Chicago’s renters allow this organization
to educate, organize and empower tenants to have
a voice in decisions that affect the affordability and
availability of decent, safe and accessible housing.
Certainly, we thank the City of Chicago and all of our
foundation supporters for seeing the ongoing value of
this Hotline.
In the end, we need to view housing as a right. If
we want a healthy, educated and employed society,
then housing must be recognized as a critical
component in achieving these goals. Absent livable,
affordable and stable housing, individuals and
families will continue to face conditions that make
them vulnerable to financial stress, illness and injury
from home based hazards, absence from school and
missed work. Armed with the findings in The State of
Renters in the City of Chicago, we are well-positioned
to catalyze much needed local policy change and
bring an informed voice to the important national
discussion of how to ensure that all our citizens are
adequately housed.
John Bartlett
Executive Director
The Metropolitan Tenants Organization
September 15, 2009
ii
List of Tables and Figures
Table 1. MTO Hotline: Types of Call Data p.8

Figure 1. City of Chicago: Wards and Regions p.9

Table 2. City of Chicago: Population and Units by Tenure, 1990-2007 p.13

Figure 2. City of Chicago: Percent Change in Rental and Owner-Occupied Units by Ward, 2000-2007 p.14

Figure 3. City of Chicago: Total Rental Units by Ward, 2000 and 2007 vs. Percent Change in Rental Units by Ward, p.15
2000-2007 .

Figure 4. City of Chicago: Rental Units as a Percent of Total Units by Ward, 2000 and 2007 p.16

Table 3. City of Chicago: Distribution of Rental Units by Building Size, 2000 and 2007 p.17

Figure 5. City of Chicago: Percent of Renter Households in Buildings of Various Sizes by Ward, 2000 and 2007 p.17

Figure 6. City of Chicago: Various Characteristics of Housing Choice Vouchers Holders by Ward, 2003 p.19

Figure 7. City of Chicago: Low Income Housing Tax Credit Properties by Ward, 2006 vs. Percent Change in Rental p.21
Units by Ward, 2000-2007 .

Figure 8. City of Chicago: Income by Tenure, 2007 p.24

Figure 9. City of Chicago: Growing Rent, Flat Incomes: Median Income vs. Income Needed to Remain Below p.24
Moderate Rent Burden, 2000 and 2007 .

Figure 10. City of Chicago: Increasing Rent Burden, 2000 and 2007 p.25

Figure 11. City of Chicago: Distribution of Monthly Rents by Households Earning $35,000-49,999 per year, 2000 and p.26
2007 .

Figure 12. City of Chicago: Percent of Households with One Condition by Ward, 2000 and 2005-2007 p.27

Figure 13. City of Chicago: Renter Households with Two Selected Conditions by Ward vs. Renter Households with p.28
Two Selected Conditions as a Percent of Rental Households by Ward 2000 and 2005-2007 .

Figure 14. MTO Hotline: Callers by Gender, 1995-2007 p.30

Figure 15. City of Chicago: Total Requests by Ward, 1995-2007 p.31

Figure 16. City of Chicago: Conditions Requests by Ward as Percent of Total City Conditions Requests, 1995-2007 p.32

Figure 17. City of Chicago: High-Risk Requests by Ward as Percent of Total City High-Risk Requests, 1995-2007 p.33

Figure 18. City of Chicago: Total Requests by Ward, 2008-2011 vs. Percent Change in Owner-Occupied Units by p.34
Ward, 2000-2007 .

Figure 19. City of Chicago: Total Conditions Requests by Ward, 2004-2007 and 2008-2011 p.35

Figure 20. City of Chicago: Total High-Risk Requests by Ward, 2004-2007 and 2008-2011 p.36

Figure 21. City of Chicago: Total Foreclosure Requests, 2008-2011 vs. HUD Foreclosure Estimates by Ward, 2007- p.37
2008

iii
Table of Contents

I. Executive Summary........................................1

II. Argument For A National Housing Policy........5

III. Methodology.................................................7

IV. Report Highlights........................................10

V. Census Data: Chicago’s Rental Market........13

VI. Census Data: Household Changes.............23

VII. MTO Hotline Data......................................30

VIII. Conclusion................................................38

IX. Recommendations.....................................39

X. References..................................................43

XI. Appendix A.................................................45

iv
Executive Summary
The time is right for a U.S. national housing policy
that focuses on affordable and stable housing for
renters.
Chicago is home to nearly 1.3 million renters and
rent is a key economic engine for the city. While the
number of wards dominated by renter households
has been on the decline, rental units remain the
majority of housing in most parts of the city.
Mirroring national trends, the city has a shortage of
affordable rental housing units. Between 1990 and
2005, Chicago lost more than 125,000 affordable
rental housing units. After a decade of rising
household rent, many low- and moderate-income
renters must seek housing in neighborhoods with
housing markets that may already be under stress.
Often renters in these neighborhoods are facing
the risk of involuntary moves, many as a result of
foreclosure.
For too long, national housing policy has relied on
moving Americans toward homeownership. The
current housing and financial crisis suggests that
during the last decade, growth in homeownership
rates and increases in the numbers of owner-
occupied units were unsustainable. Prior to the
foreclosure crisis and the economic downturn,
thousands of renters were forced to move as rental
units were converted to condominiums. Renters
have been in an affordable housing crisis for some
time, many paying an increasing amount of their
income to housing and subject to market conditions
that marginalize them.
In August 2009, President Obama indicated he will
depart from the policies of previous administrations
which prioritized an “ownership society” to focus
on the needs of renters and owners alike. As this
change in the focus of national policy plays out in the
Chicago area, local government entities and non-
profit organizations will likely be tasked with funding,
producing and sustaining affordable housing. Local-
level insight into the rental market, and especially the
conditions faced by renters, is essential for both the
1 The Metropolitan Tenants Organization
development and implementation of affordable rental
housing policies.
To lay the groundwork for an informed discussion,
The Metropolitan Tenants Organization (MTO)
analyzed both its own Tenants-Rights Hotline data
and U.S. Census data to examine specific conditions
Chicago renters have faced over two decades,
including changes in the geographic distribution
and household conditions of renters. The State of
Renters in the City of Chicago is intended to help
policy makers, providers of affordable housing, and
others understand the housing market from the
perspective of the renter. This can be critical to
solving the housing crisis.
For almost two decades, national policies have
pushed Americans toward homeownership. While
homeownership rates have increased during the last
decade, there continues to be substantial numbers of
renters, both nationally and in Chicago. As we move
through the current housing and foreclosure crisis,
it can be anticipated that the number of renters will
increase.
Changing Patterns in Rental Housing
Data from the U.S. Census confirms that while there
was a decrease of almost 10 percent in the number
of rental housing units in the City of Chicago from
1990 to 2007, rental housing still constitutes the
majority of housing in most parts of the city. We also
found:
• Relative reduction in the proportion of rental
units in the North lakefront area of the city, which
has long been dominated by rental housing.
However, this area still contains large total
numbers of rental units.
• Growth of rental housing in neighborhoods
associated with homeownership, many toward
the periphery of the city; there has been an
increase in the number of rental units on the
Northwest, South and Southwest sides of the
city.

• Increase in the number of rentals in an area
extending from the South Loop to the near West
side; some of the sub-areas within these regions
of the city have changed rapidly, with strong
markets that encouraged new construction and
speculative development.
• Few new units with hard subsidies in some
of the areas where the number of rental
households are increasing; many Low Income
Housing Tax Credit Properties (LIHTC)
properties are located in areas traditionally
dominated by renters.
• More renters are living in properties with three
to four units and relatively fewer are living in
properties with 10 to 49 units.
Increasing Rent Burden
The inadequate supply of affordable rental stock,
in the face of flat wages and incomes, has resulted
in increased rent burden for many Chicagoans.
Specifically:
• Between 2000 and 2007, the percent of
households allocating 30 percent or more of
their income towards rent grew from 40 to 53
percent; moreover, the percent of renters who
paid 50 percent or more of their income to rent
grew from 20 percent of renter households to
nearly 30 percent.
• Household median gross rent increased
significantly, at a rate outpacing inflation, while
incomes stagnated. In 2007, renters at higher
income levels were also experiencing 30 to 50
percent rent burden.
• Increased rent burden makes renters vulnerable
to adverse economic events which challenges
their ability to remain housed. This is
underscored by significant growth in the number
of rental households who reported at least one
problematic physical or financial condition on the
South and West regions of the city.
The State of Renters in the City of Chicago
Executive Summary
Changing Patterns in Hotline Call Data
MTO’s Hotline data broadens the picture of changing
conditions facing renters. This report maps total
requests, as well as specific types of requests,
including those pertaining to foreclosure, physical
conditions and high-risk situations. Between 1995
and 2007, the geography of Hotline requests
changed dramatically. Importantly, the movement of
renters and renter stress captured by MTO Hotline
calls corroborated what was seen by selected data
sets from the U.S. Census and the Department of
Housing and Urban Development.
Changes in Total Requests:
• The number of requests from the North side,
with the exception of pockets in high-density
rental neighborhoods, has decreased. From
2004 to 2007, the Hotline experienced a new
trend with the emergence of a large area of the
West side generating requests at a high level.
• A large area of the South side continued to
generate significant numbers of requests.
However, requests shifted away from the mid-
South lakefront area and toward the Southwest
side of the city.
Changes in Physical Conditions Requests:
• Changes in the geographic distribution of
the rental housing stock were reflected in the
pattern of calls regarding the physical conditions
of rental housing stock to the MTO Hotline.
Many of these calls were generated from
neighborhoods on the South and West sides
where there had been growth in rental housing
and/or stress from foreclosure. Requests
regarding the physical condition of units
continued to generate the largest number of
calls to the Hotline.
Changes in High-Risk Requests:
• Many renters were at high-risk of an involuntary
move as a result of living in a property that was
under or entering foreclosure. Renters and
2
Executive Summary
owners were sharing in the foreclosure crisis,
both in the risk to possession of their housing
and in the physical deterioration due to lack of
funds for maintenance.
• Between 2004 and 2007, much of the West
and South sides generated high numbers
of requests related to this report’s high-risk
measure. Additionally, renters in isolated areas
of the North side continued to be at high-risk of
involuntary moves.
Requests to MTO’s Hotline regarding foreclosure and
physical conditions positively correlated with HUD’s
foreclosure estimates and U.S. Census selected
conditions data, respectively, underscoring MTO’s
Hotline as a valuable resource to policy makers.
MTO’s Hotline data is consistently collected and
available almost in real time, giving policy-makers the
opportunity to make adjustments to programs and
respond to current challenges facing renters.
Importantly, over 70 percent of Hotline callers are
women. They play a key role in household decision-
making. Women may face gender-specific housing
problems, such as familial status discrimination,
as well as economic conditions that make them
vulnerable in the rental market. New housing policies
and programs should specifically consider and target
this population.
What is Needed
Rent is undoubtedly the largest monthly expenditure
for a household. Renters make significant and direct
investments in neighborhoods, and their needs
must be recognized. If we are to be successful at
building neighborhood health and vitality, it is critical
to conceptualize renters as investors in, rather than
simply transient occupants, of the city’s communities.
By comparing call data and housing trends over
time, MTO provides a valuable tool for developing,
analyzing, and evaluating preservation strategies and
targeting interventions to assist renters in maintaining
stable housing. With MTO as a resource, policy
3 The Metropolitan Tenants Organization
makers have the opportunity to review up-to-date
data and make adjustments to existing programs
that may be falling short of addressing the current
challenges renters are facing. Using this type of data
can also ensure that programs and policies under
development recognize the entire nation’s housing
needs, and specifically, the needs of renters.
For years, renters have needed a new national
housing policy that seeks to balance homeownership
with rental housing. The State of Renters in the
City of Chicago documents the crisis facing renters.
Using this information, we can begin to see how to
better fulfill their housing needs. Understanding the
conditions of renters and rental housing can help
policy makers and advocates take action to address
issues that renters face and help renters to access
and maintain housing in stable neighborhoods. Any
comprehensive housing policy will need to focus
on renters and use a variety of tools including
incentives, regulation, and government subsidy.
Driven by the findings of the analysis, the following
key areas need to be addressed at both the policy
and programmatic levels:
National Housing Policy
The Obama Administration should convene a
national housing summit, bringing together federal,
state, and local government officials, representatives
from the non-profit housing community, housing
advocates, property owners and managers, and the
business community. The goal of this summit should
be development of a comprehensive plan to fully
house the residents of this country.
Affordability
Congress and the Administration should re-commit
themselves to funding, building and preserving
affordable housing. The private market on its own
has not produced sufficient affordable housing. The
results are increases in the number of homeless and
number of renters who are moderately to severely
rent-burdened and living in distressed conditions.
A renewed commitment to affordable housing can

be demonstrated by providing supply-side solutions
through the increased production and one-for-one
replacement of subsidized units, as well as on the
demand side by expanding voucher programs. Local
government and non-profit housing developers can
and should play a critical role in expanding affordable
rental housing options. Among the actions needed:
• Fully capitalize the National Housing Trust
Fund. This is a permanent source of funding not
subject to the annual appropriations budget. It
will provide housing for extremely low- and very
low-income households.
• Increase the HUD budget to stimulate building
of social or subsidized housing. Project-based
subsidized housing provides long term stability
for low-income renters.
• Re-enact federal legislation requiring the one-
for-one replacement of public housing units
to stop the continued loss of units through
demolition.
• Increase the use of non-for-profit developers
(CDCs) in owning, building and managing social
housing. The non-profit housing movement has
established itself as a credible partner in efforts
to maintain and expand the supply of affordable
rental housing. Those CDCs that have endured
have extensive knowledge of local market
conditions that should be used.
• Increase the number of vouchers available to
low-income renters. It will take years to build
sufficient social housing and renters need help
now. It is unsustainable, even over the short
term, to have significant numbers of renters
dedicating 50 percent of their income to rent.
Maintenance
Poor housing conditions are the largest complaint
of renters to the MTO hotline. Often owners need
The State of Renters in the City of Chicago
Executive Summary
to balance the cost of making repairs with keeping
rents affordable. Particularly, the problems of small
owners, need to be taken into account in developing
programs.
Women in Rental Housing
Expanded research into the housing needs of women
and their vulnerability to particular types of stress in
the rental market is needed. The lack of affordable
rental housing is an issue for women. There is a
need for more programs to meet the housing needs
of women; we would hypothesize there is a particular
need for programs that are geared to female-headed
households.
Foreclosure
Policy efforts should seek to protect renters who
live in properties under threat of or in foreclosure.
Renters continue to be affected in great numbers
as a result of buildings going into foreclosure. Even
with recent federal law that allows renters to live out
their lease during and after foreclosure (or providing
them with 90 days of notice if they have no written
lease), renters still are not secure that their tenancy
will not be affected by foreclosure. Foreclosure
also may force renters to live in substandard
conditions as building maintenance deteriorates
or stops entirely. Funding from the Neighborhood
Stabilization Program (NSP) can be an important tool
to counteract the impact of foreclosures on renters.
Stability
Both neighborhood and household stability should
be a goal of national policy. At the household level,
renters need expanded protection from retaliation
and unjust evictions. At the neighborhood level,
where physical conditions problems are widespread,
interventions to ensure that housing quality
standards are met and maintained can be designed
and implemented. Detailed analysis of local markets
that have been identified as stressed can also ensure
that programs created are assured of success.
4
Argument For A National Housing Policy
Chicago is home to nearly 1.3 million renters. While
there has been a decrease in the number of wards
dominated by renters, rental housing still constitutes
the majority of housing in all parts of the city except
the far Northwest, Southwest, and South sides.
Overall, rental units make up 50 percent of the
housing stock (U.S. Census Bureau 2007).
Rent is both an important economic engine for the
Chicago area and an important consumer issue
for renters. It is undoubtedly the largest monthly
expenditure for almost all households. Renters make
a significant investment in neighborhoods, and their
needs must be recognized if neighborhood health
and vitality is to be achieved. It is important to
conceptualize renters as investors in communities
rather than simply transient occupants of
neighborhoods.
In the absence of a comprehensive national housing
policy, the shortage of affordable rental housing units
has grown. In 2006, half of all households spent an
average of 52 percent of their monthly income on
rent (Joint Center for Housing Studies of Harvard
University 2008). Nationally, between 1993 and
2003, there was a loss of 1.2 million units with rents
under $400 per month (Belsky and Drew 2007).
Between 1990 and 2005, Chicago experienced
a loss of an average 9,000 units of affordable
housing per year, resulting in a total loss of more
than 125,000 units locally (Smith 2008). Low- and
moderate-income renters are increasingly being
priced out of some parts of the city, often finding
housing that is more affordable in neighborhoods that
may be experiencing stress related to the housing
market.
Many neighborhoods which experienced dramatic
reductions in their rental housing stock (through
demolition and condominium conversion) also had
high rates of foreclosure. In West Garfield Park,
North Lawndale, New City, South Lawndale, and
Brighton Park, 60 to 80 percent of foreclosure
filings involved buildings of two to six units, which
5 The Metropolitan Tenants Organization
have historically been rental housing stock (Smith
and Duda 2009). Foreclosures are increasingly
impacting renters, as many rental properties are at
risk or in foreclosure.
In the U.S., a predominantly market-based approach
has driven the production of housing. For too
long, federal housing policy has primarily relied
upon the concept of moving Americans toward
homeownership (Belsky and Drew 2007). The
limitations of this policy are underscored by the
unprecedented number of foreclosures facing many
communities and nearly a decade of rising household
rent and mortgage burdens (Joint Center for Housing
Studies of Harvard University 2008). Nationally, in the
first quarter of 2009, the U.S. Census indicated that
homeownership levels had returned to near 2000
levels (U.S. Census Bureau 2009). This suggests
that growth in the numbers of homeowners and
owner-occupied units during the last decade may
have been unsustainable.
In recent decades, local governments and the non-
profit sector have been working on the challenging
task of producing and preserving affordable housing
with limited resources, typically through the provision
of person- and unit-based subsidies. The knowledge
and expertise of local governments and non-profit
organizations is critical to the development of a
national response. These institutions have first-hand
knowledge of local rental markets and conditions;
they can be the eyes and ears that inform local,
state, and national dialogues. Understanding
the conditions of renters can help policy makers
and advocates take action to address issues that
undermine rental households and in turn, help
renters to access and maintain housing that is
safe, decent and affordable and located in stable
neighborhoods.
Founded in 1984, The Metropolitan Tenants
Organization (MTO) is a Chicago-based, citywide,
not-for-profit, whose mission is to educate, empower
and advocate for tenants at the city, regional, and
national level. Since 1994, MTO has operated the
 Argument for a National Housing Policy

Tenants-Rights Citywide Hotline with funding from the

Chicago Department of Housing (now the Chicago
Department of Community Development). During
this period, MTO has fielded over 150,000 calls from
renters throughout Chicago, carefully collecting call
data on renter demographics and housing issues.
Detailed analysis of calls to the MTO Hotline and
the comparison call data to housing market trends
over time can be a valuable tool for both developing
affordable rental housing preservation strategies and
targeting interventions to assist renters in maintaining
stable housing.

Using both MTO Hotline and U.S. Census data,

The State of Renters in the City of Chicago
examines specific conditions renters in Chicago
have faced over the past two decades and seeks
to place current rental market conditions within
the context of the continuing financial and housing
crisis. The report highlights key issues impacting
communities throughout the city and influencing the
movement of renters. To create a framework for
assessing the current housing challenges, this report
includes a series of maps which provides a visual
representation of the spatial distribution of renters
and the impact of the recent foreclosure crisis in
relation to the findings of MTO’s Hotline data.

Problems in the rental housing market which cause

concern for renters are not isolated to Chicago.
It is our hope that this report will contribute to the
much needed discussions and national responses
which should be informed by local conditions and
capable of strengthening the rental market at the
neighborhood, city, and regional level.

The Obama Administration is in the midst of

reviewing housing and financial markets and will be
considering what policy interventions will produce
stability in the housing market that can be sustained.
Now is the time for public debate to be shifted toward
the importance of developing a comprehensive
multi-pronged, federal housing platform that seeks
to establish support for affordable housing as a key
goal.

The State of Renters in the City of Chicago 6

Methodology
This report uses data from MTO’s Hotline, with • Move in issues
a focus on the past 10 years, the U.S. Census
Decennial Census and American Community • Move out issues
Survey (ACS), and the Department of Housing and • Landlord entry
Urban Development (HUD). In combination, these
datasets allow for a longitudinal analysis of the • Eviction
changing characteristics of rental housing, renters,
and the issues renters face. By comparing data and • Lease termination
analyzing trends over the past 10 years, the report • Repairs
places the problems renters report to the Hotline in
the context of the changing landscape of housing • Heat/Essential services
stock and the characteristics of its renter occupants.
• Building security
Additionally, spatial patterns are shown by mapping
various Hotline, Decennial Census, ACS, and HUD • Lockouts
data. This allows for placing the issues facing renters
• Harassment/Retaliation
in a geographic context. The majority of the data
was analyzed and plotted by ward, which, as a • Rent increase
political unit that is familiar both to policy makers and
Chicago’s citizens, provides an easily understood • Security deposit
context for regional trends; it has particular relevance
• Security deposit interest
since the primary tool available to Chicago’s
renters in their efforts to preserve housing is a local • Lease problems
ordinance.
• Discrimination
MTO Hotline
Since 1994, MTO’s Hotline has received over • Lead complaint
150,000 total calls. The Hotline operates 20 hours
per week and calls are answered by counselors who • Foreclosure
include both volunteers and paid staff. Counselors • Other
receive training from lawyers currently practicing in
the area of rental housing. Bilingual counselors are These categories are used by MTO to quantify
available to address tenants who are monolingual in problems with different aspects of rental housing.
Spanish. Most callers are referred to MTO’s Hotline Data from MTO’s Hotline is compiled on a quarterly
from the City of Chicago’s 311, non-emergency and annual basis and submitted to the City of
contact line. Others learn about the Hotline by word- Chicago, as well as to each City of Chicago
of-mouth, from MTO’s brochures distributed through alderman. The report summarizes data for each
community organizations and aldermanic offices, and category of problem reported by renters by ward for
MTO’s website. the previous year, as well as totals for each category
for the city as a whole.
Information gathered from renters includes: name,
address, sex, landlord name, number of units in Types of Call Data
building, if owner resides in building and reason for
The call data is a rich dataset, clearly reflective of
the call. Requests for information from MTO’s Hotline
are coded by the following topics:

7 The Metropolitan Tenants Organization

 Methodology

the key issues that many renters face across the
city. Table 1 outlines the types of call data analyzed
throughout the report. In this report, calls and
requests are the most fundamental types of call
data. Furthermore, specific types of requests were
analyzed and two aggregate request indicators were
developed.
Types Of Census Data
mapped throughout the report. Each of the datasets
in the analysis is related to either housing stock and/
or household characteristics. The following were
among the data sets analyzed: tenure, tenure by
the size of housing stock, household income and
size, and selected household physical and financial
conditions. For a full list, please see Appendix A:
Data and Methods.

Datasets from the U.S. Census, including data from Geography

the Decennial Census and ACS are analyzed and
While the ward was chosen for the unit of analysis,
it is not intended that the conditions reflected in the

MTO HOTLINE: TYPES OF CALL DATA

Calls are the broadest measure of concerns and activity in the rental market and reflect general movement
Calls of renters and their issues.
Requests differ from calls in that a single call may generate requests for information about multiple
Requests problems. A single data unit for which no address was available was not included in the spatial
analysis.
A first indicator, conditions includes requests related to the physical condition of rental properties and
indicative of the need for preservation strategies. It includes requests in a single call for information about
either or both building repairs or building security. Requests for building security overwhelmingly contend
with the physical condition of doors and windows (including locks and other security devices), as well
as the condition of common areas (front doors and locks, buzzer systems, and lighting in vestibules,
Conditions hallways, and basements).
MTO consistently receives the most Hotline calls regarding the physical state of properties. Between 1995
and 2007, nearly one-fourth of all Hotline calls (31,787) received were conditions related. Preservation
of housing is not only important to its occupants but property maintenance also plays an important role
in community stability.
Involuntary moves can disrupt renters’ lives and erode the social fabric of communities by interrupting
or breaking renters’ ties to schools, employment, churches, and other neighborhood institutions and
organizations. The second indicator, high-risk, is related to involuntary relocation of renters. It includes
requests for information about any of the following: retaliation or harassment, lockouts, lack of heat or
essential services, and lease termination. Tenants dealing with these issues are assumed to be facing
pressures to relocate. Lease termination was included because callers asking for information about
High-Risk lease termination generally are calling to inquire about their rights when a landlord has refused to renew
a written lease or has presented a tenant with an oral lease with a 30-day notice of lease termination.
There are some calls about lease termination from tenants who are inquiring how they can terminate their
lease. Of these, some come from tenants who wish to move because they are dissatisfied with physical
or social conditions (i.e. retaliation or landlord entry) in their residence; others come from tenants who
are satisfied with conditions but may need to relocate for other reasons. Hotline staff and counselors
confirm that the majority of callers asking about lease termination are facing involuntary moves.
These requests were excluded from the high-risk indicator because it presents a special case that
was considered best to examine separately. There has been some discussion of the impact of both
Eviction eviction and involuntary moves not just on renters’ housing, but also other life outcomes such as health,
education and job stability, and debates as to if and how data could be collected and analyzed (Hartman
& Robinson 2004; Schill 2004).
An analysis of calls about foreclosure highlights how current problems in the financial and housing
Foreclosure markets are impacting renters throughout Chicago’s neighborhoods.
Source: Authors’ analysis of MTO Hotline Data, 1995-2008

Table 1: MTO Hotline: Types of Call Data

The State of Renters in the City of Chicago 8

Methodology

49
maps produced be seen in such high relief as might 50

be suggested by changes in conditions at ward 40 48

41 39

boundaries (See Appendix A). Rather, this report

45

47 46

refers broadly to changes occurring within various

33
38
36
44
regions of the city (See Figure 1). 31
35
32
1 43
29 30

Data Analysis 37 26

27 42

MTO call data was mapped and analyzed in several 28

2

ways. Total calls, requests, and indicators were 24

25

mapped by ward. Additionally, analysis was done 22

comparing the number of occurrences within a 12 11

3 4

ward as a percentage of the overall comparable 14

occurrences within the city. This analysis reflects the 23 16

20
15 5
concentration of the occurrence in comparison to 13
17

other wards and the city as a whole (e.g. number of 18 6

calls in a ward divided by all calls citywide).

7
8
21

Throughout the report, Decennial Census and ACS 19

data is often shown as a percentage of the total City of Chicago Ward Map 34 10
9
Not incorporated within Chicago
number of renter- or owner-occupied units within Chicago Wards
a ward. This denominator allows us to understand 3 miles
changes in Decennial Census and ACS data patterns Figure 1a. City of Chicago Wards
relative to the number of renter- or owner-occupied
housing units within a ward.
North
Regression analyses were performed to determine to
what extent certain circumstances faced by callers to Northwest
MTO’s Hotline are correlated with Decennial Census Mid-North

and HUD data. Specifically, analyses examined the Near

Northwest
relationship between the Hotline foreclosure requests
and HUD’s 2007 to 2008 foreclosure estimates West
Central/Loop

data, as well as the Hotline conditions indicator and

the 2000 Census’ selected physical and financial
conditions data.
Mid-South
Note: Please see Appendix A: Data and Methods
for detailed technical information, which addresses
comparability issues between the Decennial Census Southwest
and ACS data, as well as spatial and statistical
analysis methods.
South

City of Chicago: Regions

Not incorporated within Chicago
City of Chicago

3 miles

Figure 1b. City of Chicago Regions

9 The Metropolitan Tenants Organization

Report Highlights
Analysis of the U.S. Census and MTO Hotline Call
Data demonstrated that Chicago’s renters have
experienced:
Housing And Demographic Shifts
• Decrease in the number of wards dominated
by rental units. Despite a large increase in the
number of owner-occupied housing units, rental
housing still constituted the majority of housing
in all parts of the city with the exception of the far
Northwest, Southwest, and South sides.
• Relative reduction in the proportion of rental
units in the lakefront areas of the city, which
have long been dominated by rental housing.
However, these areas still contained large total
numbers of rental units.
• Growth of the number of rental units in
neighborhoods associated with homeownership,
many located at the periphery of the city; there
was an increase in the number of rental units on
the Northwest, South and Southwest sides of the
city.
• Increase in the number of rentals in an area
extending from the South Loop to the near
West and Northwest sides. Some sub-areas
within these regions of the city changed rapidly,
with strong markets that encouraged new
construction and speculative development.
• Few new units with hard subsidies in some
areas where the number of renter households
increased. Low Income Housing Tax Credit
Properties (LIHTC) properties are especially
concentrated in larger properties in areas
traditionally dominated by renters.
• Relatively more renters living in properties with
three to four units; fewer living in properties with
10 to 49 units.
• Marked increase in overall rent burden between
2000 and 2007. While Chicago remained
marginally a city dominated by rental units,
The State of Renters in the City of Chicago
Report Highlights
renters became increasingly rent-burdened.
• Household gross median rent increased
significantly while incomes stagnated. Renters
at higher income levels also were experiencing
increased rent burdens.
• Increased similarity between owners and
renters in terms of household size and rates of
overcrowding.
• Significant growth in the number of rental
households that reported at least one
problematic physical or financial condition on the
South and West regions of the city.
MTO Hotline Trends
• Over 70 percent of Hotline callers are women,
suggesting that housing policies and programs
should specifically consider and target this
population.
• MTO Hotline calls are indicative of emerging
issues facing renters in the City of Chicago.
Certain types of requests to MTO’s Hotline
positively correlated with the spatial patterns
from HUD’s foreclosure estimates and Decennial
Census’ selected conditions data, indicating
that MTO’s Hotline can be a valuable source of
information as the housing crisis continues to
unfold.
• Since data is collected on an ongoing basis,
access to this data gives policy-makers the
opportunity to make timely adjustments to
programs that may no longer address the
challenges facing renters.
• An expanded area of the South side continued
to generate high levels of total Hotline requests
(with the exception of the mid-South lakefront
area). The number of requests from the North
side, with the exception of pockets in high-
density rental neighborhoods, has decreased.
From 2004 to 2007, the Hotline experienced a
new trend with the emergence of a large area
10
Report Highlights

of the West side generating the highest level of

requests.

• A large area of the South side continued to

generate significant numbers of requests
included in the conditions indicator. Requests
have shifted away from the mid-South and mid-
North lakefront areas and toward the West and
Southwest sides of the city.

• Large areas with increases in homeownership

on the South and West sides generated the
highest level of total requests for assistance
from renters; the number of calls received from
the North lake front area decreased.

• From 2004 and 2007, a large area of the West

side emerged as generating high numbers
of requests related to this report’s high-risk
indicator. Renters in isolated areas of the North
side continued to be at high risk of involuntary
moves, as did renters on the South side.

• Renters were strongly impacted by foreclosures,

as many renters in high-foreclosure
neighborhoods reported housing insecurity due
to living in a property that was under or entering
foreclosure.

• Patterns in U.S. Census data that correlated with

MTO conditions data indicate that in those areas
of the city that experienced the greatest increase
in rental housing, there may be problems with
the condition of the rental housing stock which
may impact the ability of renters to stay housed;
together these changes and conditions could
pose challenges to neighborhood stability.

11 The Metropolitan Tenants Organization

The State of Renters in the City of Chicago 12
Census Data: Chicago’s Rental Market
Rent is an important economic engine in Chicago. In
2007, rental income generated nearly $450 million
dollars. Yet renters are increasingly burdened by
housing costs and often experience poor housing
conditions (U.S. Census 2007). During the
past decade, the city’s rental market and renter
households have undergone clear changes.
Using U.S. Census data, this section analyzes these
changes in Chicago’s rental housing market, as well
as related changes in the homeowners’ market. Both
changes in the location and stock of housing are
detailed, as well as changing social and economic
conditions in renter and owner households. Of note,
renters and owners are increasingly sharing the
same neighborhoods as well as burdensome housing
costs. This would suggest that the future of many
Chicago neighborhoods may depend on how well
the problems shared by owners and renters can be
mutually addressed.
initiatives promoting homeownership, the availability
of easy credit, and the expansion of sub-prime
lending (Joint Center for Housing Studies of Harvard
University 2009). The confluence of these powerful
drivers caused the number of rental households as
a percentage of total households to decline nearly
10 percent; from 59 percent in 1990 to 50 percent
in 2007 (See Table 2) (U.S. Census 1990, 2007).
Yet, while there has been a decrease in the number
of wards dominated by renters, rental housing still
constitutes the majority of housing in all parts of the
city except the far Northwest, Southwest, and South
sides.

Chicago’s Rental Housing Stock

Chicago has historically been a city of renters (HUD
2009). However, during the past two decades there
has been a steady shrinkage in the number of rental
units relative to owner-occupied units (U.S. Census
1990, 2007). This is due in large part to policy

CITY OF CHICAGO: POPULATION AND UNITS BY

TENURE
1990 2000 2003 2007
In Owner
Population

46% 50% 50% 53%

Households

In Renter
54% 50% 50% 47%
Households

Owner
41% 44% 47% 50%
Households
Units

Renter
59% 56% 53% 50%
Households
Source: U.S. Census: 1990, 2000, 2003, 2007

Table 2. City of Chicago: Population and Units by Tenure, 1990-2007

13 The Metropolitan Tenants Organization

 Census Data

Increased Numbers of Renters in Traditional

Homeownership Locations
Visualizing the changing rental landscape in Chicago
becomes clearer when examining the changes
in rates of renter and owner-occupied housing
from 2000 to 2007 (See Figure 2). Some areas of
Chicago that experienced the greatest change in
the percentage of renter-occupied households are
located in lower-density areas of the city that have
traditionally been dominated by homeowners, such
as the far Northwest, Southwest, and South sides.
Likewise, an area extending from the South Loop
to the near West and Northwest sides also has
shown an increase in the number of rentals. This is
an area of the city that has changed rapidly, with a
strong market that encouraged new construction and
2000 to 2007: % Change in Number
speculative development. of Rental Units by Ward
Not incorporated within Chicago
Conversely, there has been a relative reduction in -60.8% - 0%
0.1% - 20%
the number of rental households along the North and 20.1% - 138%
South lakefront (with the exception of the South Loop
Figure 2a. Percent Change in Number of Rental Units by Ward,
area). Large areas of the city have shown growth
2000-2007
in homeownership rates, particularly the Central,
North, South, and West regions of the city. Again,
while national data shows that homeownership levels
have fallen since 2007, significant growth in the city’s
owner-occupied market characterized the period
between 2000 and 2007 (U.S. Census 2009).

2000 to 2007: % Change in Number

of Owner-Occupied Units by Ward
Not incorporated within Chicago
-52.9% - 0%
0.1% - 20%
20.1% - 191.2%
*Maps in the Census Section are the authors’ analysis of Census &
IHARP data Figure 2b. Percent Change in Number of Owner-Occupied Units by
For a list of Census data sources, please see the Appendix. Ward, 2000-2007

The State of Renters in the City of Chicago 14

 Census Data

A comparison of maps showing change in the

number of rental units with maps of the total number
of rental units by ward in 2000 and 2007 visually
illustrates de-concentration and redistribution
West and South (See Figure 3). There were still
large numbers of renters of the city’s most densely
developed areas on the North lakefront and adjacent
areas, in the central city, and on the West and mid-
South side and some South lakefront areas.

2000 to 2007: % Change in Number

of Rental Units by Ward
Not incorporated within Chicago
-60.8% - 0%
0.1% - 20%
20.1% - 138%
Figure 3b. Percent Change in Number of Rental Units by Ward,
2000-2007

2000: Total Number 2007: Total Number

of Rental Units by Ward of Rental Units by Ward
Not incorporated within Chicago Not incorporated within Chicago
3,384 - 8,299 2,791 - 8,299
8,300 - 11,083 8,300 - 11,083
11,084 - 24,607 11,084 - 20,060

Figure 3a. Total Number of Rental Units by Ward, 2000 Figure 3c. Total Number of Rental Units by Ward, 2007

15 The Metropolitan Tenants Organization

 Census Data

The relative concentration of renters within wards

emerges more strongly in the maps showing renter
households as a percent of total households by ward
in 2000 and 2007 (See Figure 4). As stated earlier,
while there was a decrease in wards dominated by
renters, rental housing still constituted the majority
of housing in all parts of the city except for the far
Northwest, Southwest, and South sides.

There are clear areas of the city that are still

dominated by rental housing: on the North lakefront,
in the central-West area of the city, and on the South
lakefront and mid-South sides. These are areas
where renter households have long been dominant.
While renters in these areas may have issues in
common, this segmentation of the market may also
pose distinct challenges for different parts of the city,
as these areas are diverse in the composition of their 2000: Rental Units
rental housing stock, number and types of subsidies as a % of Total Units by Ward
Not incorporated within Chicago
available to renters, general population density, race, 17% - 50%
ethnicity and income. 50.1% - 55%
55.1% - 81.6%
Figure 4a. Rental Units as a Percent of Total Units by Ward, 2000

2007: Rental Units

as a % of Total Units by Ward
Not incorporated within Chicago
13.6% - 50%
50.1% - 55%
55.1% - 67.2%

Figure 4b. Rental Units as a Percent of Total Units by Ward, 2007

The State of Renters in the City of Chicago 16

 Census Data

Increased Numbers of Renters in Smaller CITY OF CHICAGO:

Buildings DISTRIBUTION OF RENTAL UNITS BY
BUILDING SIZE
An examination of tenure by size of building in 2000 Building Size 2000 2007
and 2007 indicated that there had been an increase
1 unit, detached 5% 6%
in the proportion of renter households in smaller
building sizes and a decrease in larger building sizes
1 unit, attached 2% 2%
(See Table 3).
2 units 18% 18%
Gains in the proportion of renter households living in
buildings with three to four units were most evident
3 to 4 units 20% 23%
on the West, Northwest, and Southwest sides of the
city. Conversely, there was a clear reduction in the
5 to 9 units 16% 15%
proportion of those in buildings with 10 to 19 units
across the Central, West, and parts of the Southwest
10 to 19 units 9% 6%
sides of the City. Likewise, there was a reduction of
the number of renter households in buildings of 20 to
20 to 49 units 11% 8%
49 units as a percentage of total units on the North
side and South lakefront and adjoining communities,
50 or more units 21% 21%
representing the loss of significant rental housing
stock in neighborhoods that have traditionally had Source: U.S. Census: 2000, 2007

strong rental markets (See Figure 5). Table 3. City of Chicago: Distribution of Rental Units by Building
Size, 2007 and 2007

2000: Rental Properties with 3 to 4 Units 2007: % of Renter Households

as a % Total Rental Units by Ward in Buildings with 3 to 4 Units by Ward
Not incorporated within Chicago Not incorporated within Chicago
1.3% - 23% 6.6% - 23%
23.1% - 29% 23.1% - 29%
29.1% - 37.8% 29.1% - 40.7%

Figure 5a. Percent of Renter Households in 3 - 4 Unit Buildings by Figure 5b. Percent of Renter Households in 3 - 4 Unit Buildings by
Ward, 2000 Ward, 2007

17
2000 2007
The Metropolitan Tenants Organization
 Census Data

2000: % of Renter Households 2007: % of Renter Households

in Buildings with 10 to 19 Units by Ward in Buildings with 10 to 19 Units by Ward
Not incorporated within Chicago Not incorporated within Chicago
1.4% - 5% 1.1% - 5%
5.1% - 7% 5.1% - 7%
7.1% - 17.1% 7.1% - 23.2%

Figure 5c. Percent of Renter Households in 10-19 Unit Buildings by Figure 5d. Percent of Renter Households in 10-19 Unit Buildings by
Ward, 2000 Ward, 2007
2000 2007

2000: % of Renter Households 2007: Rental Properties with 20 to 49 Units

in Buildings with 20 to 49 Units by Ward as a % of Total Rental Units by Ward
Not incorporated within Chicago Not incorporated within Chicago
0.5% - 4% 0.7% - 4%
4.1% - 8% 4.1% - 8%
8.1% - 34.5% 8.1% - 23.9%

2007
Figure 5e. Percent of Renter Households in 20-49 Unit Buildings by Figure 5f. Percent of Renter Households in 20-49 Unit Buildings by
Ward, 2000 Ward, 2007
2000 2007
The State of Renters in the City of Chicago 18
 Census Data

In 2007, 52 percent of total rents were derived from

those living in buildings with 4 units or less, an
increase from 45 percent in 2000 (Census 2000,
2007). This suggests that rents, occupancy levels,
and/or amount of rental housing stock are increasing
in buildings with fewer than 4 units. A similar pattern
is evident at the national level, where more than 50
percent of rental units are in buildings of less than 5
units (Joint Center for Housing Studies of Harvard
University 2009).

This change is potentially significant, as ownership

patterns of large and small rental properties differ
dramatically, with larger properties more likely to
be held by institutional investors and operated by
professional managers. Many smaller properties2003: Housing Choice Voucher Holders,
are held by individuals or couples, operatingRacial/Ethnic
on thin Composition by Ward
margins that depend on continuous streams of rent. Not incorporated within Chicago

For instance, in 2001, almost 40 percent of resident Black

owners of two- to four-unit properties nationally White

Latino
had gross incomes under $30,000 (Joint Center for
Housing Studies of Harvard University 2009) Figure 6b. HCV Holders by Ward: Ethnic Composition, 2003

2003: Housing Choice Voucher Holders,

2003: Housing Choice Voucher Holders by Ward Female Head of House by Ward
Not incorporated within Chicago
Not incorporated within Chicago
10
25 - 149 100
150 - 955 1,000
956 - 2,482

Figure 6c. HCV Holders by Ward: Female Head of House, 2003

Figure 6a. HCV Holders by Ward, 2003

19 The Metropolitan Tenants Organization

 Census Data

Renter Subsidies than 30 percent are African-American) (Metropolitan

Planning Council 2008). Female-headed households
While the number of households receiving a housing
also account for a large number of HCV households.
subsidy (either directly or indirectly) is small relative
to the overall rental market, it is critical to understand
the location of subsidized households in relationship
to the location of renter-occupied households.

Nationally, at least 75 percent of renters receive no

direct or indirect housing subsidy (Belsky and Drew
2007). Locally, the demolition of CHA properties
and the expiration of subsidies available through
various HUD-funded programs have made renters
in Chicago more dependent on the private rental
market. Since the mid-1970s demand-side rental
assistance programs have been the centerpiece of
federal rental housing policy (Katz and Turner 2007).
The ability of the private market to provide adequate
and affordable housing has been an underlying
assumption of national policy.

The primary vehicle for delivery of subsidy dollars to

renters is now the Housing Choice Voucher (HCV),
a federal program available to very low-income
families, persons with disabilities, and the elderly,
in which participants’ private market housing costs
are subsidized. Ideally, this program increases the
mobility of renters, allowing them access to housing
in more desirable communities, such as those with
better schools and near jobs (Katz and Turner 2007).
However, tenants may encounter landlords who do
not accept vouchers, as many have reported some
discrimination on this basis (Popkin and Cunningham
2000).

Maps in Figure 6 showing the total numbers of HCV

households (as of 2003) and the racial composition
of voucher holders, indicated that many of these
renters initially re-segregated, with the highest
numbers of voucher holders located on the South
and West sides, and the lowest numbers on the
Northwest and Southwest sides and in the central
city. More recently, 42 percent of voucher holders
relocating from CHA are reported to be living in
opportunity areas (where no more than 24 percent
of families are below the poverty level and no more

The State of Renters in the City of Chicago 20

Census Data

“Hard” subsidies, those that provide dollars to

develop and maintain specific properties as
affordable, play an important role in providing
stability to individual households and in maintaining
affordability as conditions change in neighborhoods
which may cause rents to increase (Katz and Turner
2007).

Currently, the main program allowing developers of

affordable housing to access hard subsidies is the
Low Income Housing Tax Credit (LIHTC). The LIHTC
is a federal program which indirectly subsidizes
the development of low-income properties. The
demolition of CHA and the expiration of HUD
project-based subsidies have removed many units
of affordable housing from the city’s rental stock, but
these are still sources of more units than the LIHTC
(CHA 2009; Voorhees Center for Neighborhood and 2000 to 2007: % Change in Number
Community Improvement 2006); however, the LIHTC of Rental Units by Ward
Not incorporated within Chicago
is the primary vehicle for adding new affordable -60.8% - 0%
housing stock. Figure 7 shows the location of units 0.1% - 20%
20.1% - 138%
subsidized with LIHTC dollars; large numbers of
Figure 7a. Percent Change in Rental Units by Ward, 2000-2007
units are located on the North lakefront, the South
side, and in a corridor extending from the central city
to the near Northwest and Southwest sides and the
West side. These are areas more densely populated
with many large properties, which have traditionally
anchored the subsidized rental housing stock.

There are fewer LIHTC properties in those areas that

have experienced the largest growth in number of
rental households. A comparison of maps showing
LIHTC properties and the percentage change of
renters by ward from 2000 to 2007 shows that some
areas of the city which had the greatest loss of rental
households have the highest numbers of LIHTC
units; conversely, many areas with an increased
number of renter households have relatively few
LIHTC properties.
2006: Active LIHTC Properties
Hard subsidies play an important role in maintaining by Number of Units in Building
access to certain areas of the city for low- and Not incorporated within Chicago
2 - 100
moderate-income renters; the majority of renters is 101 - 400
dependent on the private market and with this often 401 - 1,240
comes affordability challenges for renters (Katz and Figure 7b. Active LIHTC Properties by Units in Building, 2006

21 The Metropolitan Tenants Organization

 Census Data

Turner 2007; Belsky and Drew 2007). It is potentially

problematic that in those areas experiencing
growth in rental housing, there are very few LIHTC
properties to supplement market-rate housing.

The State of Renters in the City of Chicago 22

Household Changes
Increased Similarities in Renter and Owner 2000, 2007). In order to afford this increased rent,
Household Size an annual household income of $33,280 a year
was necessary, yet the median annual income of
From 2000 to 2007, owner and renter households
renter households in Chicago was only $29,351 in
became more similar in size. The median size of
2007 (See Figure 8). The median income figure
owner-occupied households decreased from 2.90
referenced here is different from those used to
to 2.77 persons per household from 2000 to 2007,
determine Metro area affordability thresholds,
while renter-occupied households remained almost
which typically quote a 6-county metro area median
the same in size, at 2.5 persons per household (U.S.
household income for a family of four (www.
Census 2000, 2007).
cityofchicago.org). Yet noting a more geographically-
In 2000, renter-occupied housing was more than constrained figure that accounts for households of
two times as likely to be overcrowded (more than all sizes is important for the development of targeted
one person per room) than owner-occupied housing. policies and programs.
In 2007, this figure decreased and rental housing
A comparison of distribution of income in Figure
was only 1.5 times as likely to be overcrowded.
9 shows renter households were dominant at
Additionally, nearly all renter and owner-occupied
lower income levels and owner households were
households have 4 or fewer persons per household
dominant at higher income levels. However, there
(U.S. Census 2000, 2007).
were similar number of renters and owners earning
Increased Rent Burdens between $35,000 to $49,000 (U.S. Census 2007). A
systematic bias towards homeownership in national
HUD recommends that no more than 30 percent of
housing policy may have encouraged this group of
income should be allocated to rent. Households
renters to become owners. The decision to become
expending more than 30 percent of their gross
a homeowner, when rationally considered, may not
income toward rent are considered to be moderately
have always been the best housing strategy for
rent-burdened; those dedicating over 50 percent
these individual households (Belsky and Drew 2007).
towards rent are severely rent-burdened (HUD
1998).

The experience of renters in Chicago during the

housing market bubble included a marked increase in
percent of households with moderate and severe rent
burdens, Chicago is not unique in this regard. From
2001 to 2007, the number of severely rent-burdened
households (paying more than 50 percent of income
for rent) grew by one and one-half million to almost 9
million households nationally, as affordable housing
stock was removed or became unaffordable through
rent inflation (Joint Center on Housing Studies of
Harvard University 2009).

As of the 2000 Census, the household median gross

rent in Chicago was $721 dollars (inflation-adjusted
figure). The 2007 ACS estimated that household
median gross rent had grown to $832 per month, an
increase of approximately 15 percent (U.S. Census

23 The Metropolitan Tenants Organization

 Household Changes

Source: U.S. Census, 2007

Figure 8. City of Chicago Income by Tenure, 2007

Source: U.S. Census: 2000, 2007

Figure 9. City of Chicago Growing Rent, Flat Incomes: Median Income vs. Income Needed to Remain Free of Rent Burden, 2000 and 2007

The State of Renters in the City of Chicago 24

Household Changes
As increases in income lagged increases in rent, a
larger number of renter households became rent-
burdened. In 2000, 40 percent of renter households
in Chicago were moderately rent-burdened; in 2007,
this number increased to 53 percent. Furthermore,
the percent of severely rent-burdened households
grew from 21 percent to nearly 30 percent (U.S.
Census 2000, 2007). Figure 10 details this growing
rent burden, showing rent-burdened households in
the majority in 2007.
Figure 11 shows the distribution of monthly rents for
those making $35,000 to $49,999 in 2000 and 2007,
indicating a decrease in rents paid at lower levels
and an increase in rent paid at higher levels, with a
marked increase of those who paid rent at the $1000
to $1249 level (approximately 120 to 150 percent of
Chicago’s 2007 median monthly rent). The increase
in the number of renter households that were rent-
burdened shows that not only more renters, but
an increased number of renters at relatively higher
Figure 10. City of Chicago: Increasing Rent Burden, 2000 and 2007
25
income levels, were at alarming levels of housing
and economic insecurity (U.S. Census 2000, 2005-
2007). This increase in higher-income renters with
cost burdens was also reflected nationally; from
2000 to 2005, the proportion of renters with incomes
more than $35,000 who were cost-burdened almost
doubled, from 6 percent to 12 percent (Katz and
Turner 2007).
Building Conditions and Financial Stress
The U.S. Census measures “selected physical and
financial conditions by tenure.” Conditions are
defined as:
• lacking complete plumbing facilities
• lacking complete kitchen facilities
• overcrowding (>1 person per room)
• gross rent as a percent of household income
greater than 30 percent
Source: U.S. Census: 2000-2007
The Metropolitan Tenants Organization
 Household Changes

In both 2000 and between 2005 and 2007, nearly

half of all rental households in Chicago had at least
one condition. Among owner-occupied households,
the percent of households with one condition jumped
from 30 to 40 percent (U.S. Census 2000, 2005-
2007).

Source: U.S. Census: 2000, 2005-2007

Figure 11. City of Chicago Distribution of Monthly Rents by Households Earning $35,000-49,999 per year, 2000 and 2007

The State of Renters in the City of Chicago 26

 Household Changes
Geographically, the distribution of renter households
which experienced one condition, as a percent of
all rental households in 2000, was relatively even
throughout the city, while by the period 2005 to
2007, greater variation appeared, with the highest
concentrations of households which experienced
one condition were on the West side, mid-Southwest
and South sides (See Figure 12). Given overall
increases in rent burden, it is likely that many of the
increases in conditions were related to increases in
financial stress.
As highlighted in Figure 13, the number and
percent of rental households which experienced
two conditions in 2000 and between 2005 and 2007
underscores that the trends and patterns among
these households was consistent with other changes
in the rental housing market.
By the period 2005 to 2007, areas with high total
numbers of renter households that reported two
2005 to 2007: % of Renter Households
with 1 Selected Condition by Ward
2000: % of Renter Households
with 1 Selected Condition by Ward
Not incorporated within Chicago
29.4% - 49%
Figure 12a. Percent of Renter Households with 1 Selected
Condition by Ward, 2000
27
conditions had moved to the periphery, with the
exception of the far Southwest side. The highest total
number of households with two conditions remained
in the high-density areas of the North lakefront and
adjacent areas, the West and parts of the Southwest
side, and the far South side.
When conditions were viewed as a percent of all
rental households during the period 2005 to 2007,
the largest areas at the highest concentration
extended from the West side through the Southwest
and an additional area on the South side. The lowest
concentrations are from the central through mid-
South lakefront and adjoining areas of the central
city.
No data available
Not incorporated within Chicago
39% - 49%
49.1% - 52%
52.1% - 60.7%
Figure 12b. Percent of Renter Households with 1 Selected
Condition by Ward, 2005-2007
The Metropolitan Tenants Organization
 Household Changes

2000: % of Renter Households 2000: Renter Households with

with 2 Selected Conditions by Ward 2 Selected Conditions by Ward
Not incorporated within Chicago Not incorporated within Chicago
1.2% - 3% 25 - 284
3.1% - 4% 274 - 412
4.1% - 11.1% 394 - 1,312

Figure 13a. Percent of Renter Households with 2 Selected Figure 13b. Renter Households with 2 Selected Conditions by Ward,
Conditions by Ward, 2000 2000

2005 to 2007: % of Renter Households 2005 to 2007: Renter Households

with 2 Selected Conditions by Ward with 2 Selected Conditions by Ward
Not incorporated within Chicago Not incorporated within Chicago
No data available No data available
1.9% - 3% 73 - 284
3.1% - 4% 285 - 412
4.1% - 9.3% 413 - 634

Figure 13c. Percent of Renter Households with 2 Selected

Conditions, 2005-2007 Figure 13d. Renter Households with 2 Selected Conditions, 2005-2007

The State of Renters in the City of Chicago 28

29 The Metropolitan Tenants Organization
MTO Hotline Data
This section of the report looks at how requests Since its inception, MTO has collected demographic
to MTO’s Hotline were spatially distributed, with information from callers. During the past 14 years,
particular attention to how call data often is related to MTO’s Hotline has consistently captured callers’
patterns in Decennial Census and HUD data. gender. During this period of time, MTO Hotline
callers have been primarily women. Between
MTO’s Hotline data can be used to add fine-grain
1995 and 2007, more than 70 percent of calls
detail to policy-makers’ knowledge of rental housing
received by the Hotline were from women (See
markets and renter households. The following maps
Figure 14). Women seem to be more likely to seek
detail changes in the location and magnitude of
assistance through the channels of renters’ advocacy
renters’ concerns. The analysis of trends showed a
organizations, and may experience gender-
general redistribution of renters’ issues South and
specific housing problems, such as familial status
West, with problems relating to the conditions and
discrimination and certain types of harassment
high-risk indicators developing South and West.
and retaliation (MTO 1995-2007). For this reason,
Importantly, spatial patterns in certain reports tracked program strategies and policy interventions must
in the call data are correlated with both HUD and specifically address this critical population.
Census data. This suggests that the concerns
reported to MTO by callers are reflected in the
broader patterns of population-wide surveys and
sample estimates. This relationship is made visible
in the maps below which track changes in call data
over time.

While the following section focuses on the type,

number, and location of requests received, it also is
important to understand who is calling the Hotline.

Source: Authors’ analysis

of MTO Hotline Data, 1995-2007
Figure 14. MTO Hotline: Callers by Gender, 1995-2007

The State of Renters in the City of Chicago 30

 MTO Hotline Data

Trends In Total Requests

Figure 15 shows the total number of requests to
the MTO Hotline during three time periods: 1995
to 1999, 2000 to 2003 and 2004 to 2007. Over
time, an expanded area of the South side has
continued to generate requests at the highest
level (with the exception of the mid-South lakefront
area). The number of requests from the North
side, with the exception of pockets in high-density
rental neighborhoods, has decreased. From 2004
to 2007, the Hotline experienced a new trend with
the emergence of a large area of the West side
generating the highest level of requests.

Trends In Building Conditions Requests

As noted in the methodology, the largest number
of requests to MTO’s Hotline relate to building
2000-2003: Total Number of Requests by Ward
conditions. Figure 16 illustrates requests for Not incorporated within Chicago
assistance that included variables of the conditions 205 - 748
749 - 1,148
indicator as a percent of all such requests citywide. 1,149 - 1,604

*All maps in the Hotline section are the Authors’ analysis of Hotline
Figure 15b. Total Number of Requests by Ward 2000-2003
data.

1995-1999: Total Number of Requests by Ward 2004-2007: Total Number of Requests by Ward
Not incorporated within Chicago Not incorporated within Chicago
337 - 748 207 - 748
749 - 1,148 749 - 1,148
1,149 - 2,821 1,149 - 1,741

Figure 15a. Total Number of Requests by Ward, 1995-1999 Figure 15c. Total Number of Requests by Ward, 2004-2007

31 The Metropolitan Tenants Organization

 MTO Hotline Data

This provides insight into which areas of the city are

most intensely affected by problems with the physical
conditions of rental housing stock. Over time, a large
area of the South side continued to generate these
requests; requests shifted away from the mid-South
lakefront and toward the West and Southwest sides
of the city. A decline in requests from the North side,
particularly along the lakefront and areas adjacent
to the central city, was been offset by an increased
number of requests on the West side, where a large
area generated requests about conditions at the
highest rate.
Importantly, many of the types of requests for
assistance with variables included in MTO’s
conditions indicator are similar to those found
in the selected physical and financial conditions2000-2003: Conditions Requests
measure developed by the Census. Regression as a % of Total City Conditions Requests by Ward
Not incorporated within Chicago
analysis examining the relationship between total 0.4% - 1.5%
conditions requests by ward (2000) to the number of 1.6% - 2.4%
2.5% - 4.4%
households with two selected physical and financial
conditions (Census 2000), showed a moderately Figure 16b. Conditions Requests as a Percent of Total City
Conditions Requests by Ward, 2000-2003

1995-1999: Conditions Requests 2004-2007: Conditions Requests

as a % of Total City Conditions Requests by Ward as % of Total City Conditions Requests by Ward
Area not incorporated within Chicago Not incorporated within Chicago
0.4% - 1.5% 0.3% - 1.5%
1.6% - 2.4% 1.5% - 2.4%
2.5% - 5.2% 2.5% - 3.8%

Figure 16a. Conditions Requests as a Percent of Total City Figure 16c. Conditions Requests as a Percent of Total City
Conditions Requests by Ward, 1995-1999 Conditions Requests by Ward, 2004-2007

The State of Renters in the City of Chicago 32

 MTO Hotline Data

strong correlation between the two datasets. (The

2000 Census data was chosen because it represents
the most recent population survey) This correlation
indicates that conditions requests are likely to be
related to patterns in the Census’ selected physical
and financial conditions measure.
Trends in High-Risk Requests
Figure 17 shows that requests for assistance with
variables included in the high-risk indicator, as a
percent of all such requests citywide, revealed a
similar pattern. There was a general decline in
requests from the North and near Northwest sides
and central city area. Between 2004 and 2007,
renters in isolated areas of the North side continued
to be at high-risk of involuntary moves; a new area
on the West side also generated a large number2000-2003:
of High Risk Requests
requests regarding high-risk issues. A much largeras a % of Total City High Risk Requests by Ward
Not incorporated within Chicago
area of the mid-South side, again away from the 0.3% - 1.5%
mid-South lakefront and toward the Southwest side, 1.6% - 2.4%
2.5% - 4%
also generated larger numbers of these high-risk
requests. Figure 17b. High-Risk Requests as a Percent of Total City High-Risk
Requests by Ward, 2000-2003

995-1999: High Risk Requests 2004-2007: High Risk Requests

s a % of Total City High Risk Requests by Ward as a % of Total City High Risk Requests by Ward
Not incorporated within Chicago Not incorporated within Chicago
0.5% - 1.5% 0.4% - 1.5%
1.6% - 2.4% 1.6% - 2.4%
2.5% - 4.6% 2.5% - 3.7%

Figure 17a. High-Risk Requests as a Percent of Total City High-Risk Figure 17c. High-Risk Requests as a Percent of Total City High-Risk
Requests by Ward, 1995-1999 Requests by Ward, 2004-2007

33 The Metropolitan Tenants Organization

 MTO Hotline Data

2008 Trends
Requests to MTO’s Hotline in 2008 were also
analyzed. Using data from this year, we projected
and mapped data trends for the period 2008 to
2011, with breaks standardized to the period 2004 to
2007. While it is useful to compare current data with
early data, the conclusions from comparisons within
this section are limited. Patterns noticed here are
intended to provide fodder for future analysis.
As illustrated in Figure 18, when requests for 2008 to
2011 were compared with levels of requests for the
period 2004 to 2007, the requests were concentrated
in a smaller area of the city; a solid area of the mid-
South and South side and the West side generated
requests at the highest levels. No areas of the
North side generated requests at the highest level. 2000 to 2007: % Change in Number
When compared with a map showing the percent of Owner-Occupied Units by Ward
change of owner-occupied units for the period 2000 Not incorporated within Chicago
-52.9% - 0%
to 2007, the areas with increased homeownership 0.1% - 20%
on the North side are generating fewer requests 20.1% - 191.2%

Figure 18b. Percent Change in Owner-Occupied Units by Ward,

2000-2007

2004-2007: Total Number of Requests by Ward 2008: Total Requests by Ward (4 yr. Projected Data)
Not incorporated within Chicago Not incorporated within Chicago
207 - 748 184 - 748
749 - 1,148 749 - 1,148
1,149 - 1,741 1,149 - 1,512

Figure 18a. 2004-2007 Total Number of Requests by Ward Figure 18c. Total Requests by Ward, 2008-2011 (4-Year Projected Data)

The State of Renters in the City of Chicago 34

 MTO Hotline Data
from renters. However, large areas with increases
in owner-occupied units on the South and West
sides are generating the highest level of requests for
assistance from renters.
As seen in Figure 19, requests for assistance with
the physical state of renters’ homes, as measured
in the conditions indicator, showed a hollowing-out
of high request areas on the Northwest side and an
increase in requests at the highest level along the
North lakefront and along the mid-South lakefront.
Here again, there was some overlap between
conditions requests and increases in owner-occupied
units on the West and South sides
While the above series of maps highlights total
conditions requests by ward, other analysis indicates
that the highest rates of requests came from the
South, Southwest, West, and parts of the Northwest
sides of the city. That is, these areas had high
numbers of calls relative to the amount of rental
housing. Additionally, many of these areas saw
2008: Total Conditions Requests by Ward (4 yr. Projected Data)
2004-2007: Total Conditions Requests by Ward
Not incorporated within Chicago
27 - 136
137 - 228
229 - 358
Figure 19a. Total Conditions Requests by Ward, 2004-2007
35
increases in their rental housing stock.
Given that the statistical analysis has shown that
patterns in Census data are correlated with MTO
conditions data, this should be of particular concern.
It would indicate that in those areas of the city that
experienced the greatest increase in rental housing,
there may be problems with the condition of the
rental housing stock. Again, this may impact the
ability of renters to stay housed, which could pose
challenges to neighborhood stability.
Figure 20 details requests for assistance with
variables in the high-risk indicator for period 2008 to
2011 and the period 2004 to 2007. For both periods,
there were a high number of requests generated
from both the South and West sides of the city. The
2008 maps shows decreased numbers of high-
risk requests along the North side, perhaps due to
decreased numbers of total renters in that region of
the city.
Not incorporated within Chicago
48 - 136
137 - 228
229 - 356
Figure 19b. Total Conditions Requests by Ward, 2008-2011 (4yr
Projected)
The Metropolitan Tenants Organization
 MTO Hotline Data

Foreclosure
Nationally, at the end of 2007, almost 20 percent of
new foreclosure actions involved rental properties
with absentee owners (Joint Center for Housing
Studies of Harvard University 2008). As foreclosure
rates increased, MTO began to track calls to
the Hotline from renters requesting information
and assistance on rights and options during the
foreclosure process.

Figure 21 illustrates a density pattern of 2008

requests to MTO’s Hotline about foreclosure
superimposed over 2007 to 2008 foreclosure
estimates from HUD. The highest numbers of
requests for information about foreclosure were
concentrated on the West side, extending to the
Northwest side and toward the Central city, and parts
of the Southwest and South sides. Requests to
MTO’s Hotline map correlated with spatial patterns
from the HUD data, indicating that MTO’s Hotline
can be a valuable source of information as the

2004-2007: Total High Risk Requests by Ward 2008: Total High Risk Requests by Ward (4 yr. Projected Data)
Not incorporated within Chicago Not incorporated within Chicago
57 - 197 44 - 197
198 - 313 198 - 313
314 - 476 314 - 432

Figure 20b. Total High-Risk Requests by Ward, 2008-2011 (4yr

Figure 20a. Total High-Risk Requests by Ward, 2004-2007 Projected)

The State of Renters in the City of Chicago 36

MTO Hotline Data

foreclosure crisis continues to unfold.

Foreclosure alters the conditions of the rental market

both by increasing demand (from owners who have
lost their homes to foreclosure and need to rent)
and decreasing supply (through rental properties
foreclosed upon, some of which may be off the
rental market for an extended period as banks
prefer to maintain properties vacant to increase their
marketability) (Smith 2009).

Census data released in March 2009 showed that

homeownership levels nationally have returned to
the 2000 level (U.S. Census 2009). This downward
trend suggests that growth in the number of
homeowners and owner-occupied units during the
last decade may be unsustainable. It also calls into
2008 MTO Foreclosure Requests
question the benefit of housing policies that place
vs. HUD Foreclosure Estimates by Ward, 2007-2008
ownership above all forms of tenure, neglecting the Not incorporated within Chicago
important role that a healthy and stable rental market MTO Foreclosure Calls
167 - 497
plays in the development and preservation of healthy 498 - 818
neighborhoods, cities, and regions (Belsky and Drew 819 - 1,565

2007; Katz and Turner 2006).

Figure 21a. MTO Foreclosure Requests, 2008 vs. 2007-2008 HUD
Foreclosure Estimates by Ward, 2007-2008
Taken together, more recent data suggests that some
areas with high rates of total requests, conditions,
and high-risk requests are also the same areas that
have experienced high rates of growth in the owner-
occupied market and recently, foreclosure. Both
owner and rental markets in these communities are
characterized by change and stress.

37 The Metropolitan Tenants Organization

 Conclusion
Conclusion
The State of Renters in the City of Chicago has a “renters’ market.” But years of inattention to the
attempted to underscore the increased burdens needs of low and moderate-income renters, which
facing renters as a result of the changing conditions have only been exacerbated by stagnating incomes,
in the housing market. Areas that have long been suggest that these renters may be the last to benefit
dominated by rental properties now have relatively from increased overall vacancy rates. They continue
fewer renters than in the past; meanwhile, renter to suffer from an acute shortage of affordable rental
household levels have grown in neighborhoods units.
at the city’s periphery that have traditionally been
occupied by homeowners. In addition, many hard Local governments face severe constraints on
subsidies and renter services remain in areas that resources that prevent them from adequately
traditionally contained large numbers of rental units. addressing these problems. Rental markets and
Other communities, where reports of problems in problems can also span jurisdictional boundaries
rental housing are concentrated, are experiencing that render strictly local solutions ineffective. The
foreclosure distress. Finally, the number of scope of problems in the housing and financial
affordable rental units in the central parts of the city, markets requires leadership at the federal level.
where services, jobs, and transit are concentrated, The nation needs a comprehensive housing policy
has decreased; this spatial de-concentration makes to support renters and owners alike in accessing
it more difficult to reach renters with targeted and maintaining themselves and their families
interventions. in safe, decent, and affordable housing in stable
neighborhoods. If the current housing and economic
The Metropolitan Tenants Organization’s Hotline not crisis has taught us anything, it is that simply turning
only helps individual renters address challenges, it renters into owners is no guarantee of household or
also can be used to analyze market trends impacting community stability.
renters and can contribute to development of
effective programmatic responses. As the maps
clearly show, requests made to MTO’s Hotline have
proven to be indicators of issues facing renters
throughout the City of Chicago. Detailed analysis
of MTO’s Hotline data can help policy-makers
understand conditions facing renters, ensuring that
programs are developed which effectively target and
anticipate renters’ needs. Since data is collected
on an ongoing basis, this gives policy-makers
the opportunity to make real-time adjustments to
programs and respond to new challenges as they
appear. It allows the voice and needs of renters to
be included in policy decisions.

The primary goal of housing policy should be to

find ways to keep both renters and owners stable in
their homes. The impact of the current housing and
financial crisis on renters requires that the Obama
Administration be sensitive to their conditions and
the problems they face in the rental housing market.
Some higher income renters may be experiencing

The State of Renters in the City of Chicago 38

Recommendations
This report shines a light on a housing market that
is inhospitable for many renters, particularly low-
and moderate-income renters. With the increase in
foreclosures, the opportunity exists to re-examine
housing policy and programs with a renewed focus
on creating successful renters rather than marginal
homeowners. This re-examination of housing policy
needs to be comprehensive, with an understanding
that housing markets operate at different scales, with
appropriate responses to different aspects of the
problem coming from the federal government, state
and local governments, regional bodies, the non-
profit sector, the business community, and residents
themselves. All have an investment in creating
access to stable and affordable housing that will
allow renters to focus their attention not on housing
problems, but on family, work, and community. This
will strengthen our communities, the city, region, and
country.
This report focuses on the distribution of renters and
the conditions they faced as the housing market
changed, both through reports to the Hotline and
the U.S. Census. It is beyond the scope of this
report to analyze how a decrease in over 80,000
rental units occurred. Some renters may have
become owners. Some may have left the city for
surrounding areas. This report does not track the
movement of renter households, but rather provides
snapshots of the rental market in Chicago over time.
However, anecdotal evidence from callers to the
MTO Hotline, as well as reports from thousands of
renters MTO organizers have worked with, suggest
that many renters are being forced to relocate from
neighborhoods they consider home, where they have
both personal and institutional support networks in
place. The distribution of patterns in the Decennial
Census and HUD datasets does reflect information
renters share with MTO counselors and organizers—
renters on the South and West sides are increasingly
reporting housing problems, related to foreclosure
and the physical condition of their homes Renters
also frequently report that their primary desire is to
stay in the communities where they have established
39
relationships, which they consider home.
This report recognizes that rental housing policy
has depended on the private market to address
the problems of renters. This report does not
offer a detailed analysis of how specific Chicago
neighborhoods have been impacted by this policy;
rather, the report refers to broad and recognizable
changes occurring at the city-region level that are
affecting large numbers of renters. The problems
that have developed as a result of that reliance exist
on both the supply and demand side. On the supply
side, the creation of new affordable units has not
kept pace with the loss of affordable private market
units and publicly supported units. This confirms
what analysis of housing problems at the national
level has found. On the demand side, renters have
not seen their incomes keep pace with rising rents.
Taken together, over the last decade, renters have
been increasingly confronted with dramatically fewer
affordable housing options. The housing crisis has
emphasized that the private market, unregulated,
has created tremendous instability in the housing
market for both renters and homeowners. Census
data clearly shows that an unassisted private market
has not supplied sufficient affordable housing. Policy
solutions need to address both the supply and
demand side if renters’ needs for affordable housing
are to be met.
Low- and moderate-income renters are increasingly
unable to afford to live in the city center; they are
more frequently located at the city’s periphery, where
they are often confronting housing problems. This
report analyzes the conditions renters face, drawing
attention to those regions which have seen increases
in rental housing. A key finding is that renters
in these communities report problems with the
physical condition of their housing. This is in direct
contradiction to the policy aims of recent housing
policy, which assumes that renters find opportunity
through mobility.
When renters call the Hotline, their goal is not to
find a way to move, but rather to resolve a problem
The Metropolitan Tenants Organization

where they currently live. As renters often report to
the Hotline, they are failing to benefit from increased
investment in rapidly changing neighborhoods, such
as those near the lakefront and city center, and are
often isolated and marginalized by moving. The
issue facing us is how to develop policies that gives
renters, as well as homeowners, recognition as
investors in their communities, and allows renters
to benefit from their investment by providing them
access to safe, decent, and affordable rental
housing.
Following is a brief list of recommendations:
National Housing Policy
1. The Obama Administration should convene
a national housing summit, bringing together
federal, state, and local government officials,
representatives from the non-profit housing
community, housing advocates, property owners
and managers, and the business community.
The goal of this summit should be development
of a comprehensive plan to fully house the
citizens of this country.
Affordability
2. Congress and the Administration should re-
commit themselves to funding, building and
preserving affordable housing. The private
market on its own has not produced sufficient
affordable housing. The results are increases
in the number of homeless and the proportion
of renters who are moderately to severely-rent
burdened and living in distressed conditions.
A. Fully capitalize the National Housing Trust
Fund. This is a permanent source of funding
not subject to the annual appropriations
budget. It will provide housing for extremely
Maintenance
low and very low income households.
B. Increase the HUD budget to stimulate
building of social and subsidized housing.
While the thrust of rental housing policy has
moved towards direct assistance to renters,
The State of Renters in the City of Chicago
Recommendations
more attention needs to be paid to the long-
term benefits of project-based subsidies, both
in terms of their cost-effectiveness relative
to other approaches to providing rental
assistance, and the long-term stability they
provide to low-income tenants.
C. Re-enact federal legislation requiring one-
for-one replacement of public housing units
to stop the continued loss of units through
demolition.
D. Increase the use of non-for-profit developers
(CDCs) in owning, building and managing
social housing. The non-profit housing
movement has established itself as a credible
partner in efforts to maintain and expand the
supply of affordable rental housing. Those
CDCs that have endured have extensive
knowledge of local market conditions that
should be used.
3. Increase the number of vouchers available to
low-income renters. It will take years to build
sufficient social housing and renters need help
now. It is unsustainable even over the short
term to believe that renters can pay 50 percent
of their income to rent.
4. Target local funding to increase the supply of
affordable housing.
A. Target 20 percent of TIF funds to affordable
housing.
B. Reinstate and safeguard the intended
purpose of the Real Estate Transfer Tax
by using half of the revenue for the Illinois
Housing Trust Fund.
5. Poor housing conditions are the largest
complaint of renters to the MTO hotline.
Often owners need to balance the cost of
making repairs with keeping rents affordable.
Particularly, the problems of small owners need
40
Recommendations
to be taken into account in developing programs.
A. Fund maintenance grant programs to help
owners preserve and maintain rental housing
and keep rents affordable. These grants can
include basic maintenance as well as other
health and safety issues, with preservation
of both the physical asset and safety and
affordability as goals. Models exist that can
be replicated and adapted, such as federal
lead hazard reduction grant programs that
focus on building maintenance.
B. Increase weatherization grants targeted for
rental units. This will produce both an energy
savings and a reduction in renters’ housing
costs.
Women in Rental Housing
6. Expand research into the housing needs of
women and their vulnerability to particular
types of stress in the rental market. The
Stability
lack of affordable rental housing is an issue for
women. There is a need for more programs
to meet the housing needs of women; we
would hypothesize there is a particular need
for programs that are geared to female-headed
households.
A. Identify and set aside funds for short-term
emergency financial assistance to keep
women in their home.
B. Conduct additional research into the housing
needs of women, particularly female heads of
household.
Foreclosure
7. Increase efforts to protect renters who live in
properties under threat of or in foreclosure.
Renters continue to be affected in great
numbers as a result of buildings going into
foreclosure. Even with recent federal law that
allows renters to live out their lease during and
after foreclosure (or provides them with 90 days
41
of notice if they have no written lease), renters
still are not secure that their tenancy will not be
affected by foreclosure. Foreclosure also may
force renters to live in substandard conditions
as building maintenance deteriorates or stops
entirely. Funding from the Neighborhood
Stabilization Program (NSP) can be an important
tool to counteract the impact of foreclosures on
renters.
A. Target funding to the maintenance of rental
properties during the foreclosure process to
ensure the continued viability of the building.
B. Provide relocation assistance to tenants
forced to move due to foreclosure.
C. The City of Chicago needs to ensure that its
allocation process for NSP dollars strikes a
balance between housing opportunities for
renters and new ownership opportunities.
8. Expand protection for renters at the local
and state level by enacting Just Cause Eviction
controls. Just Cause Eviction protection already
exists in many states and cities, and is in place
at the federal level for renters living in subsidized
units. This legal protection is especially helpful
to renters in low-vacancy and expensive housing
markets whose landlords may be tempted to
increase rent revenues by evicting longer-term
renters who may pay lower rents.
9. Develop programs to respond to housing
issues at the community level. Housing
is neighborhood-based, and successful
program implementation may require analysis,
intervention, and evaluation on a local level.
A. Conduct detailed analyses of local markets
that have been identified as stressed. Data
from the MTO Hotline can be an important
component of analysis at this level.
B. Conduct systematic inspection of rental
The Metropolitan Tenants Organization
 Recommendations

properties in neighborhoods with high levels

of conditions reports. A replicable model
exists in the Strategic Task Force operated
by the Department of Buildings to target
properties where drug dealing was reported.
Systematic inspections will need to be
combined with a robust public education
effort and access to legal protections for
renters who may experience retaliation
from their landlords. These efforts could
assist communities in successfully targeting
resources to properties in distress, benefiting
both landlords and renters.

C. Explore how communities can create planning

efforts to identify problems in local markets,
with appropriate roles for elected officials,
community-based organizations, landlords,
residents, and social and cultural institutions.

The Metropolitan Tenants Organization is committed

to participating in efforts to advance these
recommendations. MTO will continue to make data
from the Hotline available on a quarterly basis to City
officials and aldermen, and welcomes the opportunity
to partner with advocates, government entities, and
local residents to ensure that Chicago’s residents,
particularly the renters MTO represents, have
increased access to safe, decent, affordable and
accessible housing.

The State of Renters in the City of Chicago 42

References
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The State of Renters in the City of Chicago 44

Appendix A: Data & Methods
I. Previous Hotline reports.
“Tenants on the Line: A Spatial Analysis of Rental
Housing, 1990-2002,” written by co-author Ann K.
Barnds, similarly analyzed Hotline call data and
served as a guide in the generation of this report.
II. GIS Data Analysis.
A. Geocoding. 82 percent of the Hotline’s call
data was geocoded for the period 1995-2008.
The remainder of the data either fell outside of
the City’s bounds and/or was missing part of its
address. Data was grouped into three, four-year
periods (1995-1999, 2000-2003, 2004-2007)
and one year, 2008, was analyzed alone. A full
data set for 1998 was unavailable and it was
excluded from our analysis.
B. Projections. All data was projected.
PCS: NAD_1983_StatePlane_Illinois_East_
FIPS_1201_Feet
GCS: GCS_North_American_Datum_1983
C. Data breaks. Using the period 2004-2007 as a
basis for comparison, all data was mapped using
a three-quantiles break method, rounding to the
nearest full percent.
D. “2008 Trends” projections. In order to
compare a single year of data (2008) to 4 years
of data, the number of requests and indicators
calls from 2008 was quadrupled. This approach
was the most appropriate given that the number
of calls to the Hotline has remained relatively
constant over time (constrained by the number
of hours the Hotline operates each week and
number of volunteers).
E. Census Data. Decennial Census (DC) and
ACS data were analyzed for the City of Chicago
(including areas in both Cook and DuPage
County). Both SF1 and SF3 Census Data
were used. For mapping, the smallest area
available was chosen for analysis, which was
the tract (DC) and the public use microdata
area (PUMA) (ACS). In order to map these
45
datasets onto wards, the PUMA and Tract data
was intersected with ward boundaries, using the
union tool in arcGIS. This method assumes that
the population in question (renter households,
rental building sizes) falls evenly across the tract
and PUMA. For example, if two wards fall within
one PUMA, the PUMA data was allocated to the
ward in proportion to the size of the ward.
Given that the tract is much smaller than the
PUMA and that in some cases (SF1 data), full
population data was compared to sample data,
there is a significantly wide margin of error
across most analyses. Multiple aggregation and
intersect methods were tried, each producing
similar levels of data distortion. To maintain
the highest level of confidence possible, the
report language carefully speaks about broad
changes in the data at the region level and does
not reference specific neighborhoods, wards, or
community areas.
Additionally, in our analysis we avoid the direct
comparison of ACS figures to DC (SF1) figures
and instead compare the proportions of the
whole.
For a full list of U.S. Census data sources, see
Figure A1 on the following page.
F. Ward boundaries. All data (1995-2007) was
mapped on to current ward boundaries.
G. Other Data Notes: In general, missing
data was excluded from the calculations. For
instance, the ACS selected conditions data
available was only for certain PUMAs in Chicago
in both 2007 and 2005-2007. The 2005-2007
ACS dataset was the most complete and was
used here. It is the only instance in which we
use the 2005-2007 3-year rolling figures, which
were not available when we began the study.
The Census and ACS do record both owner
and renter-occupied units located in the same
multi-family properties in their tenure by units in
The Metropolitan Tenants Organization

structure data set.
H. Regression Analyses. Two simple
regressions/correlations were performed to
begin to determine the relationship between
MTO Hotline data and data from the U.S.
Census and HUD. The relationship between
2000 U.S. Census Data selected conditions
data and MTO’s conditions indicator (2000)
and MTO’s foreclosure requests and HUD
foreclosures estimate for an 18 month period
in 2007-2008 was tested. Both regressions
examined ward level data. There was a
significant and moderately strong relationship
in both cases. This relationship suggests that a
further investigation of the relationship between
US Census
Population in occupied housing units by tenure
Tenure (no of units)
Tenure by units in structure (*excluded those living in
boats, vans, rvs, etc)
Tenure by household income in 1999
Median household income
Median gross rent
Gross rent as a percent of household income in
1999/2006
Mortgage status by selected monthly owner costs as a
% of household income in 1999
Aggregate gross rent
Aggregate gross rent by units in structure
Average household size of occupied housing units by
tenure
Tenure by household size
Tenure by occupants per room
Tenure by year householder moved into unit
Tenure by selected physical and financial conditions
Hispanic or Latino, and not Hispanic or Latino by race
Gross rent by household income
Figure A1. U.S. Census Data Sources
The State of Renters in the City of Chicago
Appendix A
call and census data is warranted, which
examines the multiplicity of factors which predict
patterns in the conditions measure of the census
and the predictive power of the Hotline data.
III. Future analysis/reports.
As there is daily change in the housing market, it
is important to continually produce reports which
reflect the most current data available. The State of
Renters in the City of Chicago was commissioned in
late 2008 and while the report includes recent data, it
does not fully capture the housing crisis in real time.
1990 2000 2002 2003 2005-2007 2007
x x x x
x x x x
x x
x x
x x
x x
x x
x x
x x
x x
x x
x x
x x
x x
x x
x x x
x x
Source: U.S. Census, 1990-2007.
46
Appendix A

IV. Summary of Requests

MTO HOTLINE: SUMMARY OF TOTAL REQUESTS

Requests 1995-1999 2000-2003 2004-2007
Total Requests
59,497 44,658 47,801
Geocoded

Mean Geocoded 1,190 893 956

Median Geocoded 1,102 911 982

Source: Authors’ analysis of MTO Hotline Data, 1995-2007

MTO HOTLINE: SUMMARY OF CONDITIONS

REQUESTS
Conditions 1995-1999 2000-2003 2004-2007
Total Conditions
15,374 9,365 9,350
Geocoded
Mean Geocoded 307 187 187
Median Geocoded 290 195 191

Source: Authors' analysis of MTO Hotline Data, 1995-2007

MTO HOTLINE: SUMMARY OF HIGH-RISK CALLS

High-Risk 1995-1999 2000-2003 2004-2007
Total High-Risk
12,072 10,748 12,968
Geocoded
Mean Geocoded 241 215 259

Median Geocoded 223 216 256

Source: Authors' analysis of MTO Hotline Data, 1995-2007

47 The Metropolitan Tenants Organization

The State of Renters in the City of Chicago 48