Why It Matters
Pennsylvania faces a projected shortfall of 185,000 homes over the next decade, creating urgent pressure on state legislators to address both construction bottlenecks and the erosion of existing affordable inventory.
What Happened
Government officials and community advocates testified before state lawmakers on Wednesday, arguing that new construction alone cannot resolve the commonwealth’s housing crisis. Allegheny County Executive Sara Innamorato warned that losing existing units while building new ones creates a net negative for housing availability.
Innamorato emphasized that the state must prioritize preserving current homes and maintaining affordability for low-income residents. She noted that seniors and those with limited financial means are increasingly struggling to retain their housing.
Jen Schuchart of the United Way of Southwestern Pennsylvania reported a rise in requests for housing assistance. She highlighted that just over one-third of households in the region fall into the Asset Limited, Income Constrained and Employed (ALICE) category. Many of these households spend more than 30% of their income on housing or utilities.
David Dean of the Pennsylvania Association of Realtors stated that affordability issues cannot be resolved without increasing overall inventory. Developers cited several barriers to construction, including delayed approvals, rising labor costs linked to federal immigration enforcement actions, and tariffs on building materials.
Local Policy Responses
Pittsburgh Mayor Corey O’Connor’s administration is overhauling its permitting processes to accelerate development. Deputy Chief of Staff Matt Singer stated that the current system has not kept pace with investment needs. The city is implementing a fast-track pilot program and virtual inspections for smaller projects, such as accessibility modifications.
Jon Knudsen of Commonwealth Development Partners is redeveloping the 37-story Grant Building in downtown Pittsburgh. Constructed in 1929, the structure was the city’s first high-rise. Knudsen noted that converting empty offices to apartments has been difficult due to high costs, requiring tens of millions of dollars to give buildings a second life.
Knudsen recommended that cities create a single point of contact for permitting, citing a positive experience in Chicago. Minority Chair Rep. Rich Irvin (R-Huntingdon) weighed the need to increase housing supply against concerns about local autonomy. Proposals under consideration include requiring municipalities to allow accessory dwelling units or reform zoning for multi-family homes.
Innamorato recommended using incentives rather than penalties to encourage pro-housing policies. The county is prioritizing applications from jurisdictions with pro-housing policies spanning multiple municipalities for a local fund. Maura Jacob of The Pittsburgh Foundation warned that expanding supply without planning for the poorest residents is unwise.
By the Numbers
44,000 — Apartments lost in Allegheny County with monthly rent under $1,000 between 2019 and 2024
13,000 — Units gained in Allegheny County costing more than $2,000 per month between 2019 and 2024
185,000 — Projected homebuilding shortfall in Pennsylvania over the next decade
66,000 — Homes needed in southwestern Pennsylvania to meet demand
30% — Portion of income many ALICE households spend on housing or utilities
Zoom Out
The challenges in Pennsylvania reflect broader national trends where rising construction costs and regulatory delays hinder supply growth. Federal immigration enforcement actions have contributed to labor shortages in the building sector, while tariffs on materials increase project expenses. These factors complicate efforts to meet housing demand across multiple states.
What’s Next
Lawmakers will consider proposals that balance increased housing supply with local zoning autonomy. The county’s incentive-based approach for pro-housing policies may serve as a model for other jurisdictions facing similar shortages.