Pennsylvania Zoning Rules Identified as Major Barrier to New Home Construction
New study shows Pennsylvania’s 2,600+ municipalities create costly zoning maze that’s hampering home construction statewide.
HARRISBURG, PENNSYLVANIA — State and local zoning regulations are creating significant obstacles for Pennsylvania homebuilders, adding time and costs that contribute to the commonwealth’s ongoing housing shortage, according to a new study presented to state lawmakers.
A George Mason University Mercatus Center study specifically identifies state and local regulations as factors adding “time, cost and uncertainty” to the homebuilding process. The findings were discussed during a Thursday hearing before state House Republicans examining barriers to residential construction.
“Housing prices are rising, inventory remains tight and the cost of building new homes has increased significantly over the last decade,” said Rep. David Rowe (R-Union). “And part of that challenge is supply, but a lot of it is also the process.”
Municipal Complexity Creates Challenges
Pennsylvania’s more than 2,600 municipalities each maintain different zoning rules and permitting requirements. This patchwork of regulations has contributed to the state’s poor performance in new home construction nationwide.
The commonwealth ranked near the bottom of a national ranking for new homes built between 2017 and 2023, according to research from Pew. Housing costs, including rent, rose faster in Pennsylvania than in New York City and its suburbs during this period, though overall prices remain lower.
Builders Detail Regulatory Burden
Construction industry representatives testified about the challenges of navigating thousands of different municipal requirements across the state. Panelists, all builders, explained how meeting varying requirements for different municipalities increases home construction expenses.
The regulatory complexity particularly affects development outside of single-family homes, where zoning restrictions create additional barriers to addressing housing needs. Across the political spectrum, Pennsylvania leaders have identified the housing shortage as one of the biggest obstacles to the commonwealth’s economic growth.
The Mercatus Center study provides specific recommendations for streamlining the permitting process in Pennsylvania. The research comes as state officials seek solutions to boost housing production and address affordability challenges affecting residents statewide.
Thursday’s hearing is part of ongoing legislative efforts to examine regulatory reforms that could accelerate home construction while maintaining necessary oversight of development projects.
