The opening of the Obama Presidential Center has brought a sharp increase in short-term rental licenses on Chicago’s South Side, raising both economic opportunity and concerns about housing affordability in neighborhoods that have historically been accessible to lower-income residents.
A WBEZ analysis of city data found that licenses for short-term rentals in the 20th Ward — which covers parts of several South Side neighborhoods including Woodlawn, just west of the Obama Center — have increased 46% compared with 2019, the first full year of available data. That stands in stark contrast to the city overall, which has seen a 38% decrease in shared housing licenses during the same period.
In February, the Obama Foundation held a workshop in partnership with Airbnb to help residents “earn extra income by sharing their homes with Obama Presidential Center visitors.” Some hosts report being able to raise nightly rates by about $30, with June shaping up to be one of the busiest months in years.
But researchers and housing advocates warn the proliferation of short-term rentals can deplete a neighborhood’s housing stock, pushing up prices and rents. Edward Kung, an economics professor at California State University, Northridge, whose 2019 study showed a 1% increase in Airbnb listings leads to measurable rent increases, said the mechanism is straightforward: Airbnbs shift housing from residents to tourists.
Kristy Ramsey, a Woodlawn Airbnb “Superhost” for more than a decade, described the dynamic as a double-edged sword. While her rental income helps pay for groceries and her mortgage, she has seen neighbors displaced by rising rents. “You start to get better neighbors, the neighborhood looks better, but on the flip side, it hurts me to see people have to move,” she said.
Housing advocates and some lawmakers say the city is not doing enough to enforce existing laws meant to protect the housing supply. The tension highlights a broader challenge as the Obama Center reshapes the economic landscape of Chicago’s South Side.
