Developer plans new duplexes off South Mulford Road as Rockford continues push for more home construction

By Kevin Haas
Rock River Current
Get our free newsletter

ROCKFORD — A developer plans to build six duplexes on a vacant 2-acre plot of land at the corner of Phaeton Drive and South Mulford Road, adding a dozen dwellings that would be rented for approximately $2,500 to $3,000 per month.

Micheal McNeely of Jazs Properties has requested a special-use permit to go forward with the project. If approved by City Council, he expects work to proceed in 2025.

More business: Family-owned taqueria Marrufo’s Tacos opens in south Rockford

The city’s Zoning Board of Appeals voted 6-0 Tuesday night to give preliminary approval to the plans, which call for single-story duplexes. Each unit would have about 1,800 square feet and an attached two-car garage. The matter moves ahead to the council’s Code & Regulation Committee on Monday for its next stop before a City Council vote.

The proposal is one of a trio of duplex developments underway or on the horizon in the city, adding to a housing stock that real estate officials say is drastically short on available homes. City Council put an incentive package in place last year meant to spur construction of homes, duplexes and apartment complexes. The goal was to lower the cost for developers, who now say it costs more to build than they could sell the home for here.

Work must commence by Dec. 31 for qualify for the incentives, which are a mix of tax rebates and fee waivers. So far this year there have been 20 single-family home construction permits pulled and three for multifamily units, which are for a trio of duplexes being built by Youssi Custom Homes on North Bell School Road.

https://infogram.com/home-construction-1h7j4dvmly05v4n?live

First Midwest Group has also recently submitted plans to restart a duplex project it launched 15 years ago at Bell School and Mill roads. Infrastructure was built for that project, but it stalled amid the housing crash with only a single duplex built. Up to 21 duplexes could be built on that 6-acre site. It’s unclear when that work may start.

“For a long, long time, the city tore down more houses than were actually constructed,” said Conor Brown, CEO of the NorthWest Illinois Alliance of Realtors.

The shortage on available homes has driven up sale prices to record numbers in the Rockford region and across the country. Brown said building more homes will help the real estate market find a better balance of price appreciation for homeowners without squeezing potential buyers out of the market.

“We didn’t get here overnight, so we’re not going to get out of it overnight,” he said. “We just have to continue to do things like adding more inventory to our region.”

Last year, there were 27 single-family home construction permits and six for multifamily. That was the most since 2019, before the coronavirus pandemic took hold and upended the supply chain and labor and material costs. In 2019, there were 41 single-family home permits and 38 for multifamily. You have to go back to 2007 before the Great Recession began to see more homebuilding in the city.

The housing shortage extends beyond Rockford across the country, with millions of additional homes needed to meet demand, according to a variety of surveys which pin the shortage anywhere from 4 million to 7 million homes.

The Region 1 Planning Council is preparing its own study to look at the housing needs through 2030 across the region. The goal is to ensure the region can grow the access to housing for residents and the future workforce.

“We’re doing it to give confidence to future employers,” said Michael Dunn Jr., executive director of Region 1. “If we don’t have places for our future employees to live, we won’t get the jobs. You can’t get that workforce if housing is unaffordable and unattainable.”

In September 2023, the city, Rockford School Board and Rockford Township partnered to offer a three-year property tax rebate meant to incentivize new home construction. The program also waives fees for building permits, inspections, plan review and water connection fees.

“It’s still going to take a little bit of time. Our programming is working, it has created a lot of interest and activity,” said City Administrator Todd Cagnoni. “Now we have to see what the results are and how effective it will be.”

The city had a similar tax rebate program that run until 2019, the year that had the most home construction since 2007.

“It’s the only incentive program in the state that I’m aware of that is that aggressive for pushing new home construction,” Brown said.

Cagnoni said the recent interest in homebuilding is a combination between the city’s cost-reduction incentives and the housing market itself.

“Now the question is can they build and sell it where there’s enough of a profit margin where it makes sense,” he said. 

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas