Pa. Not Building Enough Housing, Hurting Affordability

Pennsylvania is not building enough housing, contributing to a lack of inventory and higher housing prices overall, according to a report by The Pew Charitable Trusts. 

Fewer Homes Built 

Pew cites that out of all 50 states, Pennsylvania ranked no. 44 when it came to the rate of housing built from 2017 to 2023. During this period, newly permitted units accounted for only 3.4% of housing stock, compared to 7.5% nationwide. This amount was not sufficient enough to meet the number of new households in Pennsylvania, which increased by 5.1%. 

Restrictive Zoning Laws 

One of the factors Pew contributes to the commonwealth’s lack of housing is its restrictive zoning regulations. Specifically, they cite, “Many Pennsylvania communities have laws that limit the construction of new housing, and thus housing supply. One common way zoning laws prevent more housing from being built is requiring that just one house, which usually houses just one family, sits on a relatively large lot – in some cases, a full acre or nearly two.” 

In other words, many places across the state – especially to the east – enforce zoning that restricts large lots to single-family homes. If zoned differently, these lots could hold many more multi-unit buildings, like townhouses or apartments, thus creating more housing inventory for more households. Pew also notes that most of these places have existing infrastructures that could serve many more homes than currently allowed by law. 

Affordability for Renters 

The lack of housing in Pennsylvania has also hurt housing affordability for renters. 

From 2017-2023, rent rose most significantly in northeastern Pennsylvania, increasing by as high as 81% in some places – faster than New York City (+30%) and its suburbs (+44%). 

Statewide, the average rent in 23 Pennsylvania counties tracked by Zillow was $1,013 in 2017 and $1,476 in 2023, a 46% increase. Pew cites that this increase is much larger than the increase in wages and prices for other goods/services during this time period. 

Pew Suggestions 

Pew’s report calls upon policymakers to enact change when it comes to building more housing and remedying affordability across the commonwealth. They pose the following ideas: 

• Allow small multifamily buildings (duplexes and triplexes) on lots that now permit only single-family housing. 
• Permit the construction of accessory dwelling units – including attics, basements and backyards – on lots that now permit only single-family homes. 
• Reform permitting laws to simplify and speed up the process. 
• Allow more apartments near commercial areas and public transportation. 
• Reduce or remove minimum parking mandates that increase the cost of building multifamily dwellings. 
• Convert commercial buildings to apartments. 
• Enable the construction of housing on land owned by nonprofit organizations, educational institutions and religious organizations, such as churches.