HARRISBURG, PA — The issue of housing affordability took center stage during a House Majority Policy Committee hearing hosted by state Representative Lindsay Powell of Allegheny County. The hearing convened industry experts and policymakers to tackle the growing problem of unattainable housing in Pennsylvania, which has impacted workers, businesses, and the overall economy.
Rep. Powell emphasized the widespread ramifications of high housing costs, stating, “The lack of attainable housing is a complex issue, negatively affecting workers, businesses, and families.” She noted that the housing crisis often prevents workers from accepting better-paying jobs due to the inability to relocate. Additionally, it has stymied generational wealth-building through homeownership for younger generations.
Experts at the hearing outlined a range of pressing challenges, including the gridlock in the housing market caused by an increasing number of homeowners hesitant to sell properties due to historically low locked-in mortgage rates. This reluctance has contributed to limited housing supply, pushing prices even further out of reach for many residents.
According to data cited by NeighborWorks, the average home price in Pennsylvania has surged from $108,000 to $198,000 within a decade. Alongside escalating home prices, Pennsylvania remains burdened by widespread rental cost challenges. Nearly half of the state’s renting households are classified as cost-burdened, meaning they allocate more than 30% of their income to housing expenses, while over 12 million renters nationwide devote 50% or more of their earnings to rent.
The inability to secure affordable housing not only hinders workers but also limits businesses’ ability to attract and retain skilled employees. Experts argued that this has emerged as a critical workforce issue that warrants coordinated legislative action.
Rep. Powell and her colleagues have introduced legislation to address these challenges. Powell proposed a grant program to support the acquisition of properties for affordable housing development, while bipartisan efforts with Reps. Tarik Khan and Andre Carroll seek to codify the SHARE Program, aimed at improving housing for the state’s older population, into law.
James Eash, Director of Real Estate Development for ACTION Housing, and Craig Burkley, COO and CFO of NeighborWorks Western Pennsylvania, shared insights into the structural barriers to housing affordability. Angel B. Rodriguez, Executive Director of Philadelphia Land Bank, also addressed how land management practices could help increase housing availability.
Experts reiterated that housing affordability has evolved beyond a niche issue, with far-reaching impacts on communities across the state. “We can no longer view housing as merely a side issue,” Powell stated, underscoring the urgency of implementing solutions to mitigate economic hardships and promote financial stability for residents.
Efforts to address housing challenges are critical not only for Pennsylvania’s workforce and economy but also for its residents’ quality of life. The hearing underscored the necessity for innovative policies and collaborative initiatives to ensure affordable housing becomes accessible to all.
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