Because impact fees significantly increase new housing prices in suburban Chicago, they prevent some potential homebuyers from purchasing homes. Those who can still afford to buy a home are forced to buy less housing than they otherwise could have. To the extent that income is correlated with race, impact fees may slow or prevent the migration of minorities into the suburbs. High housing costs in the Chicago area are a legitimate concern to housing advocates and cost-conscious businesspeople. High impact fees cause other negative effects.
Impact fees raise serious questions of fairness.
They force newcomers to pay more, sometimes much more, for the same services and amenities enjoyed by current residents. Younger families are deprived of the lifestyle enjoyed by older people, even though the former are willing to pay the full cost of their impact on the community. As high impact fees on new development push up the prices of existing homes, some long-time residents may encounter difficulties paying the higher taxes that accompany higher assessed valuations. They may be wealthier in terms of their assets, but they may not wish to sell their homes and leave the neighborhoods in which their friends and relatives continue to reside. High impact fees may reduce job creation and personal income growth.