New Construction Fees Jump to $5,700 for Multi-Unit Buildings
Chicago's permit fees for new 2-3 unit buildings now exceed $5,700, with most contractors building the cost into project bids.
Building a new 2-3 unit building in Chicago just got more expensive, with total permit fees now reaching $5,735 for typical projects.
Recent permit data from Francisco Avenue and North Homan Avenue shows the fee breakdown that's catching developers off guard:
Typical new construction fees:
- Building permit: $2,450-$3,050
- Zoning review: $75
- Plan review and inspection fees: $2,610-$3,132
These fees don't include the reported construction costs, which are running $625,000 to $715,000 for new 3-unit buildings in neighborhoods like South Lawndale and East Garfield Park.
What's driving the increases:
The Chicago Building Department restructured fees to cover expanded plan review services and additional required inspections for multi-unit buildings. Projects now undergo enhanced structural review and energy compliance checks.
Smart developers are building permit fees into their initial project budgets rather than treating them as afterthoughts. One Francisco Avenue project paid only $675 upfront but owes nearly $5,000 in remaining fees before final approval.
**Planning tip:** Budget the full fee amount at project start. The new 3-unit construction trend shows these buildings remain profitable despite higher permit costs.
Permit processing times remain lengthy—36 to 190 days—so factor both time and fees into your development timeline.