Pennsylvania's housing shortage is being worsened by a tangle of regulatory and workforce challenges, according to a recent study from George Mason University’s Mercatus Center. With over 2,600 municipalities each enforcing their own zoning and permitting rules, builders often need approvals from up to 11 regulatory bodies, making a two-year timeline a best-case scenario. Stormwater management requirements are a particular cost driver, sometimes exceeding all other utility and paving costs combined, while the Pennsylvania Department of Environmental Protection’s one-acre permitting threshold is stricter than the five-acre federal minimum. Zoning restrictions also limit denser housing options like apartments and accessory dwelling units. On the labor side, an aging construction workforce and the loss of over 126,000 immigrant workers between 2024 and 2025 are squeezing capacity further. Read more from the Pennsylvania Capital-Star.
Source: Pennsylvania Capital-Star; 5/21/2026