Pennsylvania needs to update its laws and invest in housing production to build 450,000 new homes by 2035, Gov. Josh Shapiro said.
The Democratic governor unveiled the state’s first long-term housing strategy in Philadelphia on Thursday, calling for public investment in infrastructure, modernizing planning and regulatory policies, and adding legal protections for tenants.
Shapiro said Pennsylvania needs to address its construction and affordability metrics, given limited development and an aging housing stock. The Realtor.com® State-by-State Housing Report card gave the state a C, indicating some affordability.
“We need to build more housing in Pennsylvania, and we need to do a better job of preserving what’s already there,” Shapiro said.
Five important areas in a long-term housing plan
The recommendations cover five key areas, including accelerating housing construction, reducing construction costs, reducing homelessness, working with local governments to modernize zoning laws, and closing the equity gap.
And they come as Shapiro has set aside a critical $1 billion infrastructure fund in the state’s two-year budget, which he hopes will mean more money invested in affordable housing.
More than half of the state’s homes are over 50 years old. Given population and economic projections, Pennsylvania needs 450,000 new units by 2035. But at its current pace, the country will lose 185,000 units, Shapiro said.
That budget also proposes capping application fees, closing certain expropriation records, and reducing death certificates that allow people to transfer real estate after death. Statewide standards for residential use and facilitating mixed-use development along commercial corridors are some of the ways to build more housing.
“It’s a simple concept of supply and demand that starts at the local level,” Shapiro said. Zoning laws vary widely among the state’s 2,560 municipalities, and the state is putting together a “catalog” to understand and share best practices.
Debates on the housing system
Sen. Vincent Hugheschairman of the minority of the Pennsylvania Senate’s Appropriations Committee, said that those resources will support the activities of localities in the state.
That’s important because some municipalities set their own housing subsidies, including the Mayor of Philadelphia Cherelle Parkerwho last year announced a $2 billion plan to create and preserve 30,000 homes in the city.
Shapiro acknowledged that much of the plan requires action by the legislature and local governments. But he said he’s heard housing concerns from Democrats and Republicans alike, which he hopes will inspire other state lawmakers to follow suit.
Resources for the project will be a strong point in negotiations with Republicans, who have said they are concerned about spending levels in the $53.3 billion biennial budget allocation. The legislature must approve the budget.
“I can do something with the performance of officials, and there is a lot that requires the Legislature to work and cooperate with the local government,” said Shapiro. “The good news is, we work well with local governments.”
