The 7 Biggest Shifts In Chicago Planning And Development For 2025: A Deep Dive Into DPD's New Vision

Chicago's urban landscape is undergoing a profound transformation, driven by a strategic, equity-focused vision from the Department of Planning and Development (DPD). As of December 17, 2025, the city's approach to growth is shifting dramatically, moving away from solely Loop-centric megaprojects to a neighborhood-first model that prioritizes equitable investment across the South and West Sides. This new direction, championed by Commissioner Ciere Boatright, is reshaping everything from housing density to commercial corridors, making it a crucial time for developers, residents, and investors to understand the new rules of engagement.

The current focus is on leveraging powerful tools like Tax Increment Financing (TIF) and new land-use policies to spur "missing middle" housing and unlock massive, long-stalled neighborhood projects. The DPD's initiatives for 2025 are not just about new buildings; they are about fostering Community Wealth Building (CWB) and modernizing outdated Industrial Corridors. The following deep dive outlines the seven most critical and current shifts defining Chicago's planning and development future.

I. The New Leadership and Vision: Commissioner Ciere Boatright

The direction of the Chicago Department of Planning and Development (DPD) is firmly set under the leadership of Commissioner Ciere Boatright, who was appointed in November 2023. Her tenure marks a clear pivot toward a more equitable distribution of resources and development activity throughout the city. This vision is a cornerstone of Mayor Brandon Johnson’s administration.

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The DPD's 2025 budget reflects this shift, allocating approximately $90 million to a grant program specifically designed to support development. A significant portion of this funding is earmarked for pre-development grants, with a targeted focus on Community Wealth Building (CWB) projects in historically underserved areas, particularly the South and West Sides.

The department is actively using its platform, including regular Chicago Plan Commission meetings, to push forward projects that align with these equity goals, ensuring transparency and public engagement in major land-use decisions.

II. The Missing Middle Infill Housing Initiative (MMIHI)

One of the DPD’s most impactful and current initiatives is the Missing Middle Infill Housing Initiative (MMIHI). This program is designed to address Chicago's housing shortage by promoting the development of multi-unit housing types—such as duplexes, six-flats, and courtyard buildings—that bridge the gap between single-family homes and large apartment complexes.

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The second round of MMIHI winners was recently announced, demonstrating the city's commitment to scaling this effort. A key element involves proposing land sales and incentives to facilitate these 'missing middle' projects, especially in South Side neighborhoods where infill development is crucial for community stability and growth.

This initiative is critical for increasing density in appropriate areas without resorting to massive high-rise construction, offering a sustainable model for neighborhood-level growth and affordability. The city is actively backing plans like the $47 million housing project in East Garfield Park, showcasing this commitment to diverse neighborhood housing solutions.

III. Major Development Hotspots and Transformative Projects

While the focus is on equitable neighborhood development, several massive projects are moving forward that will redefine key areas of the city. These developments are a major part of the 2025 real estate landscape:

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• The $7 Billion West Side Overhaul: The owners of the United Center are spearheading a colossal $7 billion plan to create a massive mixed-use development on the West Side. This includes the 1901 Project Development in the United Center Lots, which has entered the critical zoning and permitting phase, signaling a major economic injection into the area.
• CHA Apartment Construction: The Chicago Housing Authority (CHA) is gearing up for the construction of 4,100 new apartments, a significant undertaking aimed at increasing affordable housing stock across the city.
• Downtown and Near West Developments: High-profile commercial and residential projects continue to shape the downtown periphery. Developments to watch in 2025 include 220 North Ada Street, 345 N Aberdeen St, 360 North Green Street, and 400 N Elizabeth St, which are solidifying the Fulton Market and West Loop as commercial powerhouses.
• TIF-Funded Megaprojects: The DPD is actively proposing TIF funding for large-scale developments, including one recent proposal for a $130 million project, demonstrating the continued use of this mechanism for strategic urban renewal.

IV. Modernizing Chicago's Planning Frameworks

The DPD is not just approving projects; it is fundamentally updating the foundational documents that guide long-term urban planning. This effort ensures Chicago's development rules are fit for a 21st-century city.

Central Area Plan Update

The Central Area Plan Update is a crucial initiative focusing on the core of the city: the Loop, Near North Side, Near South Side, and Near West Side. This update will set the vision for density, open space, transportation, and mixed-use development in Chicago’s economic engine for the next decade, addressing post-pandemic commercial real estate challenges and promoting residential conversion.

Industrial Corridor Modernization

The Industrial Corridor Modernization Initiative, updated as recently as September 2025, is refining land use policies for Chicago’s vital industrial areas. This ensures that industrial land remains a viable economic engine while allowing for flexibility in areas where a shift to mixed-use or commercial development is more appropriate, balancing job retention with neighborhood integration.

RTA Community Planning Partnership

In a move to improve transit-oriented development (TOD), the DPD is partnering with the Regional Transportation Authority (RTA) on new Community Planning program projects in 2025. This collaboration aims to enhance connectivity and ensure that new development is strategically located near public transit, making neighborhoods more accessible and sustainable.

V. The Focus on Equity and Community Wealth Building (CWB)

The overarching theme of Chicago's current planning strategy is equity. The DPD is using its influence to ensure that growth benefits all residents, not just a select few.

The emphasis on CWB projects is a tangible manifestation of this commitment. By directing grants and resources to local developers and community-based projects on the South and West Sides, the city is working to build generational wealth and stability in areas that have historically been overlooked. This strategy is about empowering local stakeholders to drive their own neighborhood development. The Environmental Justice Action Plan is also influencing planning decisions, ensuring that development is ecologically and socially responsible.

This commitment to equitable development is the driving force behind the strategic use of land sales and development incentives, creating a more balanced and resilient city structure. The current climate in Chicago favors developers who are willing to partner with the city on its vision for inclusive growth.