Subdividing Large Lots
Northlake
Cook County
In the late 1990s and 2000s, the City of Northlake purchased and subdivided oversized lots for infill development, revitalizing its aging housing stock while creating more small-lot single-family homes.
Background
In the late 1990s, the City of Northlake began taking a proactive approach to revitalizing its aging, post-WWII housing stock. At the time, the real estate market was relatively stable, and the City was in a strong financial position. This allowed Northlake to purchase and demolish deteriorating homes using general fund dollars, demolish the structures, and sell the properties to builders for redevelopment. While the City often took a financial loss on these transactions, the goal was to improve neighborhood conditions and encourage reinvestment.
A key turning point came when the City acquired an unusually large corner lot — 11,000 square feet in size, more than double the minimum lot size of 5,000 square feet. By subdividing the parcel into two lots and selling them separately, the City was able to recoup more of its investment and make the project financially viable. The City then proceeded to look for opportunities to replicate its success on large corner lots or vacant parcels.
How It Works
Northlake’s lot subdivision initiative was rooted in practical zoning reforms and a nimble, City-led development model. The City amended its zoning ordinance to ensure that subdivision of corner lots resulted in both new homes facing the side street. This change addressed early concerns about homes appearing awkwardly placed in backyards and helped maintain a cohesive streetscape.
To make the new lot configurations work, the City also revised its front yard setback requirements, reducing them from 30 feet to 20 feet. To preserve the visual openness of the front yard, the City allowed a narrower parkway and sidewalk – 5 feet each instead of the traditional 10-foot parkway – to make the yard feel larger than it was.
In one instance, a particularly deep lot where a house had burned down was purchased and subdivided into three separate parcels. As the City’s efforts gained visibility, private developers began replicating the approach on their own. This strategy was feasible until a few years ago, when rising real estate prices made acquisitions and teardowns significantly more expensive.
Public Involvement
Support from residents played an important role in the process. While some neighbors were initially skeptical, many came to see the new investment as a positive signal. Seeing a home sell for $450,000 nearby encouraged residents to reinvest in their own properties.
Goal
To revitalize a deteriorating housing stock and increase the supply of small-lot single-family homes.
Target
Oversized or underutilized residential lots, particularly corner lots.
Financing
Funded through the City’s general fund, with direct property acquisitions and resale to developers.
Success
16 lots were created by the City, and 13 lots have been created by private developers using the City’s example
Lessons Learned
Northlake’s mayoral leadership and streamlined processes allowed it to act quickly and effectively, demonstrating how small cities can lead on housing innovation.
Contact Information
City of Northlake, www.northlakecity.com
This case study was last updated in February 2026.
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