Realtors and economic developers tell Bloomington council home inventory is critically low; jobs growth outpaces local housing

Tracy Pat Kunis, president of the Mid Illinois Realtors Association, and a regional economic development presenter identified in the meeting as Patrick told the City of Bloomington Committee of the Whole on Tuesday evening that the local housing market is in a supply shortage while employment gains are increasingly captured by surrounding communities.

Pat Kunis said the year ending October 2024 showed only a 0.5% increase in housing units for Bloomington-Normal — “7 total homes” more than the prior year — and that active listings across Bloomington-Normal were down to 99 homes at her brokerage’s sales meeting. She said there were no new-construction listings under $250,000 and that existing inventory overwhelmingly sits above the price points most local buyers seek: “We are in an inventory shortage,” she said.

Patrick, who identified his use of public data (including the U.S. Census OnTheMap tool) and local labor and commuting datasets, told the council that while the community has averaged significant investment and job gains in recent years, much of the new economic activity draws workers from outside the city. “Our surrounding communities are taking advantage of that ripple and we’re not,” he said.

Why it matters: City officials and presenters said the mismatch — strong local job growth but limited affordable, workforce housing — exports retail and other consumer spending out of Bloomington and leaves employers struggling to fill locally based positions.

Key details presented (figures as reported by presenters): Pat Kunis (Mid Illinois Realtors Association) - Active listings in Bloomington-Normal (brokerage snapshot that day): 99 total (64 resale/35 new construction). - Net change in units year-over-year (ending Oct. 2024): +0.5% (an increase of roughly seven units: 2 resales and 5 new-construction units, per MIRA statistics). - Average sale price (existing/resale homes): about $275,000 (up from about $255,000 in 2023). - Average sale price (new construction): about $455,000 (up from $416,000 the previous year). - Only three active existing listings under $100,000; no new-construction homes under $250,000 on the snapshot day. - Inventory supply: presenters said many price bands had less than a one-month supply of homes; showing service data indicated roughly 1,100 buyer showings in the prior 30 days.

Key points from Patrick (economic development presentation): - Patrick used Census OnTheMap and commuting analyses to show Bloomington’s share of “maker” and “mover” jobs has been dropping and that the community has a growing share of payroll and consumer spending leaving the city monthly. - He presented a model-based housing need figure (as shown to the council): “If you look at the actual change in the far right, it’s still saying we need about 45100 houses,” and, projecting out, “it’s saying you need 16,000 houses” by 2030–2035 (presenter’s phrasing in transcript). He also warned that higher housing costs reduce the region’s ability to retain college graduates and mid-career workers.

Council discussion focused on causes and possible responses: members asked whether construction costs and labor availability were principal constraints and whether incentives and standardized permit processes could change developer behavior. Presenters and staff said high construction costs and return-on-investment calculations attract some projects to other communities that offer larger incentives or financing mechanisms, and that labor shortages and lead times also factor into delayed groundbreakings.

What’s next: Council members and staff asked for copies of the presenters’ slide decks, data sources and examples of incentive packages used by neighboring communities so the council can weigh potential actions. Presenters said materials and sources would be shared with staff.