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Housing prices have soared since 2020.
Gov. Josh Shapiro took steps to address the problem last week by signing an executive order creating the state’s first comprehensive Housing Action Plan.
“Housing stability is critical when you want to help people be able to have the freedom to chart their own course and the opportunity to succeed,” he said.
The order would have the Department of Community and Economic Development create a housing action plan that would lead to building more affordable housing. It would also have the Department of Human Services bring together various stakeholders to work on ways to address homelessness.
Donna Bullock, former state representative and CEO of Project HOME, has witnessed Pennsylvania’s housing problems.
Her organization provides housing and multiple forms of assistance to homeless or low-income Philadelphians.
She said high rent is among the causes of the housing struggle.
“Fifty-four percent of Philadelphia’s renters are spending 30 percent or more of their income on housing costs,” she said. “One out of five households are spending 50 percent or more of their income.”
According to Redfin, one of the largest real estate brokers in the country, the average cost of rent in Pennsylvania is $18,000 per year.
The average salary in Pennsylvania is around $58,000, according to Forbes.
This means 31% of yearly income is going toward rent on average.
Chase Bank recommends renters spend a maximum of 30% of their monthly income on rent.
Bullock said that by creating more affordable housing, the cycle of homelessness and poverty could be broken.
“Every Pennsylvanian, regardless of their station in life, deserves a safe and affordable place to live and thrive,” she said.
Pennsylvania Association of Realtors CEO Mike McGee applauded the effort.
“Housing inventory and affordability is a major issue in all areas of the commonwealth,” he said in a statement.
He said his organization wants to help address housing shortages and ensure affordable housing is available.
Republican Rep. Rich Irvin, R-Franklin, chair of the House Housing and Community Development committee, said he appreciates Shapiro taking a measured, data-driven approach to housing issues rather than throwing money at the problem.
He said the “best way to solve the housing shortage issue is to get government, and unnecessary regulations, out of the way of builders so they can build quicker and more affordably.”
He does note some regulations are necessary in the interest of health and welfare of renters and purchasers.
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