A new report by Realtor.com reveals that Pennsylvania has some of the highest premiums on new construction in the United States. According to Affordability and Homebuilding: State-by-State Report Cards, Pennsylvania ranks fourth with an 89% premium on new construction, trailing only Kansas, Michigan and Ohio. The state's high new construction costs, combined with relatively low levels of homebuilding activity, earned Pennsylvania a C grade overall. The report also highlights that Pennsylvania’s share of 2024 housing permits is just 1.6%, while it accounts for 3.8% of the national population, indicating a significant gap in new housing development. The report advocates for a policy shift in local zoning regulations to encourage the construction of affordable housing. Read more on the Pennsylvania Association of Realtors JustListed blog.
Source: PAR JustListed; 5/5/2025