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Josh Shapiro says Pennsylvania must dramatically increase home construction if it hopes to reverse years of lagging development and rising housing costs.
Speaking in Harrisburg, the governor outlined a broad strategy to address what state officials project could be a shortage of 185,000 housing units by 2035. In recent years, Pennsylvania has trailed nearly every other state in adding new homes, intensifying affordability pressures for renters and buyers alike.
“If we execute, Pennsylvania will go from being at the bottom of the pack to a national leader on housing construction,” Shapiro said.
That’s a big ‘if.’
The proposal builds on an executive order signed in September 2024 and represents months of research, 18 roundtables, hundreds of stakeholder calls and nearly 2,500 survey responses. Administration officials describe it as a long-term roadmap rather than a quick fix.
Shapiro’s plan calls for increased funding across multiple housing initiatives, though it does not attach firm dollar figures to most proposals. In his recent budget address, he pitched a debt-funded, $1 billion infrastructure investment package covering housing, energy generation and school facilities, expressing hope that “the lion’s share” would go toward housing development.
The strategy includes:
“It’s bold, it’s comprehensive, and it doesn’t sugarcoat the real issues,” said Dina Schlossberg, executive director of Regional Housing Legal Services.
From 2010 to 2019, Pennsylvania’s housing production dropped nearly 40% compared to the previous decade. By 2023, more than a quarter of households were spending over 30% of their income on housing-related expenses, including rent, mortgages and utilities.
State projections indicate the strongest demand for new housing over the next decade will be concentrated in southeastern and south-central Pennsylvania.
While the governor’s office is pushing for statewide reforms, resistance may emerge from lawmakers concerned about spending and municipal leaders wary of losing local zoning authority.
David Sanko, executive director of the Pennsylvania State Association of Township Supervisors, cautioned against a one-size-fits-all approach.
“Those decisions need to be left to local folks on the ground who know what the assets of that community are,” he said.
At the same time, he acknowledged areas of potential compromise.
“There’s a lot of give and take to be had” on working towards solutions, he said.
Republican lawmakers have signaled concern over large new expenditures as Pennsylvania grapples with a structural budget deficit. Because sweeping zoning changes and expanded borrowing would require legislative approval, bipartisan cooperation will be essential.
The plan also highlights fragmentation within state government. Housing responsibilities are currently spread across several agencies, resulting in what the document describes as “decisions that are uncoordinated, inefficient, and sometimes conflicting.”
To address that, Shapiro has created a new senior housing-focused role within the Department of Community and Economic Development. The administration also plans to prioritize grants for municipalities that proactively modernize zoning rules.
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Additional tenant protection proposals include:
The plan explicitly acknowledges that it does not offer a “quick fix” and warns that solving the housing crisis will require “sustained effort.”
Still, the governor argues that without decisive action, affordability pressures will worsen, economic competitiveness will suffer and younger residents may continue leaving the state in search of better housing opportunities.
Whether lawmakers can align on funding levels, zoning reforms and renter protections will determine whether Pennsylvania can move from the bottom of national housing construction rankings toward the leadership position Shapiro envisions.
Originally reported by Charlotte Keith of Spotlight PA in State College.
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