A new report by the Pew Charitable Trusts reveals that Pennsylvania ranks among the lowest states for new home construction, contributing to rising home prices and rental costs across the state. According to the study, Pennsylvania ranked 44th in the nation for the number of new homes approved between 2017 and 2023, highlighting a growing concern for both homebuyers and renters.

Housing Shortage Pressures PA Real Estate Market

The housing supply shortage in Pennsylvania is directly linked to increased competition and higher prices for available homes. The Pew report identifies restrictive local land-use and zoning regulations as key factors limiting new development and recommends that state policymakers consider loosening these restrictions to stimulate construction and alleviate the shortage.

What This Means for Buyers and Sellers in Pennsylvania

For PA homebuyers, limited inventory continues to drive up home prices, making homeownership less attainable for many. Renters are also feeling the impact, as demand outpaces supply across major cities and suburban markets alike.

Addressing this issue by encouraging new construction could help balance the market and improve affordability across Pennsylvania's housing sector.

Stay Informed on PA Real Estate Trends

Whether you’re a first-time homebuyer, real estate investor, or planning to sell in Pennsylvania, keeping up with market shifts like these is crucial. Be sure to check back for updates on how local zoning changes and state-level policies may impact your housing options in Pennsylvania.

Source: Philadelphia Inquirer, March 14, 2025.