by Anthony Hennen
Housing costs in Pennsylvania are rising, but the General Assembly has not prioritized the expansion of housing supply as an area of concern. As rents and housing prices rise across the Commonwealth, inaction now could cause pain in the near future.
Housing prices statewide rose by 14% from 2020 to 2021, as The Center Square previously reported, and in central Pennsylvania, apartment rents have increased 40% since 2017. Rents in Philadelphia increased almost 10% in 2021. The Lehigh Valley has had similar pressures, with one-third of households spending at least 30% of their income on rent or mortgages.
Local action to grow the housing supply might not be enough; instead, statewide action could be necessary to keep housing prices affordable and grow the population.
“People have lost – got behind on their mortgages and rents and all that kind of thing,” said Sen. Wayne Fontana, D-Allegheny. “We could be more helpful in that regard and certainly we want folks to stay. I can speak for the city of Pittsburgh – we want folks to stay in the city.”
Fontana, a board member of the Pittsburgh Land Bank and Habitat for Humanity of Greater Pittsburgh, has advocated for tax credits for affordable housing projects as a way to expand housing supply without forcing longtime residents out of their neighborhoods.
“It’s a space thing, right? You gotta build up, you can’t build sideways,” Fontana said.
He has been critical of state Republicans for not moving affordable housing bills through the General Assembly.
“It’s taking forever still to get these (proposed bills) through … it’s very, very difficult to get anything moved if you’re a Democrat in Harrisburg,” Fontana said. “That to me is the No. 1 issue with trying to help cities and municipalities throughout the state to put programs together to help with the affordable housing issue.”
Fontana gave some credit to state Republicans on issues such as dealing with blight. One bill pushed by progressive Democrats to use some budget surplus funds for home repairs has attracted bipartisan support, as did a 2020 bill to create a state housing tax credit, signed into law as Act 107.
However, the rent and housing price increases in recent years show that the General Assembly has a growing problem.
“They’re not dealing with the big picture here,” Fontana said. “Unless they take the lead on something, it’s not happening … and (a blight task force is) not really addressing affordable housing like it needs to be addressed.”
– – –
Anthony Hennen is a reporter for The Center Square. Previously, he worked for Philadelphia Weekly and the James G. Martin Center for Academic Renewal.
