Where Do We Need Affordable Housing the Most?

• Unaffordable everywhere: The U.S. has only 35 affordable homes for every 100 extremely low-income renters, exposing a deep, systemic housing crisis.

• Cubes to cribs: Chicago is turning empty offices into housing, including 111 W Monroe, a TIF-backed project leading the LaSalle Street revival.

• Decentralized deadbeat: Detroit is suing a blockchain real estate startup after its fractional ownership model collapsed due to a lack of real-world accountability.

Perspectives

Where Do We Need Affordable Housing the Most?

The U.S. housing crisis has reached historic levels of unaffordability, with the greatest burden falling on extremely low-income renters. A new report reveals that these households face a shortage of over 7 million affordable and available rental homes nationwide. For every 100 extremely low-income renters, there are only 35 units they can reasonably afford. Most of these renters are not unemployed, as commonly assumed, but are seniors, workers, or caregivers.

The problem is national but uneven. Some areas, like parts of Los Angeles, Texas, and Kansas City, have virtually no affordable units for their lowest-income residents. In four regions, the number of available units is literally zero. This lack of supply forces low-income renters to compete for housing with those in higher income brackets, driving up rents and deepening inequality. Severe cost burdens are common, with three-quarters of extremely low-income households spending more than half their income on rent.

Solutions exist, but they require bold policy action and local reform. Increasing housing supply, especially in underserved areas, is essential. Zoning changes, development incentives, and faster approval processes can all help. Developers who focus on affordable housing in the hardest-hit areas can create both social good and long-term value. Without large-scale efforts, the gap between what renters need and what the market provides will only continue to grow.

Overheard

Chicago's Tax Incentives for Office Conversions Seem to Be Working

Chicago is leaning hard into its LaSalle Street Reimagined vision, and the conversion of 111 W Monroe is shaping up as a centerpiece. The Harris Trust office towers are being reborn as a mixed‑use destination: a 226‑room hotel, a reactivated rooftop Monroe Club with pool and restaurant, a 16,000 ft² ballroom and spa, and 345 apartments (around 104 of which are designated affordable). Construction kicks off later this year, with a finishing line set for early 2027.

This transformation is backed by a strategic financial move: $40 million in Tax Increment Financing (TIF) from the LaSalle/Central district, alongside historic and low-income housing tax credits. TIF isn’t a grant in the traditional sense—it’s a promise to reinvest future property tax increases from the district into redevelopment wireframes now, essentially using tomorrow’s gains to fund today’s projects. Across six ongoing conversions, the city has approved roughly $321 million in TIF to leverage nearly $900 million in private investment, bringing 1,765 mixed-income homes online.

The pipeline—anchored by Monroe, 79 W Monroe, 135 S LaSalle, and others—paints a bold picture: sleek amenity-rich repurposing of historic high-rises that were once clones of mid-century commerce. About 30 percent of these units are affordable, tapping into TIF and credits to hit financial targets. But the ambition hasn’t erased the hurdles: rising retrofit costs, landmark restoration complexities, and hefty code upgrades linger. Still, if Chicago can prove that its increment financing models works, it could be a way for other cities to navigate the expensive proposition of repurposing empty office buildings.

Detroit Hits Crypto Landlord with Record Lawsuit

Fractional ownership powered by technology was supposed to democratize real estate. Instead, a recent lawsuit in Detroit shows how decentralization can devolve into disorder. The city of Detroit just filed a massive nuisance lawsuit against RealT, a blockchain real estate startup that lets investors buy tokenized shares of rental homes. On paper, RealT's approach to real estate is innovative. In practice, it’s hundreds of homes with no heat, broken pipes, moldy walls, and tenants who can’t find a single person to fix the toilet. Detroit says more than 400 properties have been left to rot while rent checks flow to token holders around the world.

RealT blames the property managers. Despite who is at fault the lack of governance and accountability show the downside of a non-traditional ownership structure. Other fractionalized ownership platforms have run into mismagmement problems. In February 2025, New York courts ordered fractional ownership startup Landa to surrender control of 119 properties after defaults and mismanagement triggered $35 million in loan disputes.

RealT's is another example of the disconnect between tech’s dream of distributed ownership and the hard reality of property management. You can split a house into a thousand tokens, but you can’t fractionalize accountability. Fractionalized ownership of real estate is attainable, but difficult but more legal battles like this will only make it harder for any new companies to try to use technology to democratize real estate.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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