Where Does PA Stand in the Growing Affordability Divide?

While comparison may be the thief of joy, new affordability data delivers a clear warning: Pennsylvania is affordable today, but that advantage may not last.

These indexes reflect what households pay for groceries, housing, utilities, and everyday expenses, rather than how wealthy residents feel.

The two states setting the national average are Nevada and Illinois, whose Regional Price Parity is 100, meaning $100 buys the same amount of goods and services in that state as it does on average nationwide.

With a price level of around 97.6, Pennsylvania remains slightly more affordable than the baseline. Essentially, $97.60 gets you the equivalent of $100.

Viewed objectively, Pennsylvania lands in the middle tier: more affordable than many coastal states but not as inexpensive as parts of the Midwest and South. In fact, 23 states and D.C. are more expensive than Pennsylvania while 27 states are less expensive. 

California is the most expensive state with prices about 11% above the national average while Arkansas is the most affordable by 13%.

Politically, nine of the ten most expensive states lean solidly blue, while nine of the ten most affordable are reliably red. The trend is less about ideology itself and more about policy outcomes.

That brings Pennsylvania into sharper focus when compared to high-growth states like Texas and Florida. Texas sits at roughly 97 on the RPP scale, about 3% more affordable than the national average like Pennsylvania.

Texas has paired that price advantage with rapid population growth and job creation. A key factor is housing supply. Texas communities generally allow large-scale development, which keeps inventory flowing even as demand rises.

Florida, meanwhile, sits around 103 on the index, about 3% less affordable than average, yet continues to attract new residents because economic expansion and business-friendly policies offset higher price levels.

Pennsylvania’s own affordability aligns closer to Texas statistically, but its growth trajectory has lagged both states.

Housing supply helps explain much of this divergence.

In the past decade, Pennsylvania’s housing production dropped by nearly 40% compared to the previous decade. Today, Pennsylvania is building less than half the number of units that it built in  the 1950s. 

Pennsylvania helped pioneer modern suburbia with Levittown outside Philadelphia, but today its housing construction lags. The Commonwealth will need to add 450,000 new housing units by 2035 to meet anticipated housing demand. At the state’s current build rate, Pennsylvania will fall short by nearly 185,000 units.

Pennsylvania still benefits from a legacy of attainable homeownership.  Maintaining that reputation requires a willingness to adapt toward zoning reforms that speed up construction and decrease costs.

Texas has demonstrated how supply can stabilize prices, while Florida has shown that growth can continue even when costs creep slightly above the national average.

Taxes and governance styles shape perceptions as much as raw data. Texas promotes a low-tax environment, while Florida emphasizes speed and predictability in business approvals.

The RPP chart tells a story about economic geography. America is increasingly divided between high-cost coastal states and lower-cost growth regions in the South and Midwest. Pennsylvania stands between those models.

That middle ground offers opportunity, proximity to major markets, strong infrastructure, and a cost structure that remains accessible to many families. Ultimately, affordability is the result of ongoing policy choices.

Pennsylvania’s position near the national average is not a guarantee of long-term affordability; it is a moment of choice.

The Commonwealth can lean into growth by expanding housing, streamlining approvals, and encouraging investment, or it can drift toward the higher cost patterns seen along the coasts.

If policymakers treat affordability as an asset worth protecting, Pennsylvania can remain a place where middle-class life is still attainable.

Affordability isn’t an accident. It’s the cumulative result of policy decisions made today that will shape what it costs to live here tomorrow.

Athan Koutsiouroumbas is a managing director at Long Nyquist and Associates and a former congressional chief of staff. Follow him on X at @Athan_K.