PA's Housing Shortage Threatens the State's Economic Future

Last year, Pennsylvania ranked third in the nation for job growth. Yet young families and workers who flock to the Keystone State face a significant obstacle: a shortage of affordable housing that threatens their future here.  

Affordable housing is a major factor in whether people want to live, work, and raise their families in a state. Despite growth and opportunity in the state, workers and businesses are wrestling with whether they can continue calling Pennsylvania home.     

It doesn’t have to be this way. Lawmakers can modernize zoning codes, lift burdensome regulations, and create the flexible housing options Pennsylvanians need. This will help Pennsylvania remain a desirable place to live and keep its economy among the fastest growing in the country.      

Thankfully, there is growing agreement on where Pennsylvania’s housing market is breaking down: zoning challenges and needless restrictions that limit growth in the places where people want to live.

These restrictions limit housing options, exacerbate the shortage, and push prices higher for both buyers and renters.      

As a result, over one million Pennsylvanians now spend more than 30% of their income on housing, meaning many are forced to spend more than the commonly recommended share. That level of cost is financially unsustainable, and for young adults and lower-income families, increasingly devastating.   

With Pennsylvania on track to be 185,000 homes short of meeting housing demand by 2035, even those who can afford housing will find that there are simply no options available.      

Unless we expand housing options – and fast – this shortage will push hardworking families out of the state and drive talented workers to move elsewhere. That will devastate Pennsylvania’s economy and communities.  

The best way to change course is to remove burdensome, outdated housing restrictions. Thankfully, there are bills on the table this legislative session that have the support of Gov. Shapiro and lawmakers on both sides of the aisle.

HB 2186, introduced in the House last December, would allow homeowners to construct secondary housing options on their property, creating additional housing and opportunities for multi-generational living. Similarly, HB 2109 would expand flexible housing options by removing arbitrary restrictions on  housing that previously limited the number of individuals who could live together in a single home.  

These bills would meaningfully address the state’s housing limitations. After all, Pennsylvanians benefit most from regulations that reflect how communities actually live and grow, not from narrow mandates that dictate where housing can be built or what living arrangements are allowed.

We need affordable housing and the flexibility to build homes that meet the needs of hardworking Pennsylvanians.

These bills could do just that by bridging gaps in Pennsylvania's housing market, allowing young families and workers to put down roots and continue contributing to the state’s economy, and putting the American Dream of homeownership back within reach for families across the state.  

As lawmakers come to the table next week to vote on HB 2109 and HB 2186, they have an opportunity to chart a better path forward for future generations of Pennsylvanians. Expanding housing affordability is an opportunity for Pennsylvania lawmakers to set an example for the rest of the country in how to lead in creating housing abundance.  

There is no better time than now for lawmakers to pass legislation that can make Pennsylvania a more affordable place to live – not just today, but for decades to come.    

Emily Brey is the state director for Americans for Prosperity-Pennsylvania.