Conversations with state and national leaders reinforced the connection among housing supply, workforce growth, and regional competitiveness- and the need for action at every level of government.
You cannot have an economic-growth strategy without a housing strategy.
That message emerged clearly from two recent conversations attended by the Harrisburg Regional Chamber: our September Policy Pulse Speaker Series with Stacie Reidenbaugh, President and CEO of 10,000 Friends of Pennsylvania, and the U.S. Chamber of Commerce’s 2026 Housing Summit: Building for Growth in Washington, D.C.
Although the discussions approached housing from different perspectives, they arrived at the same conclusion: communities cannot attract workers, support business growth, or remain competitive without enough homes that meet the needs and budgets of the people who live and work there.
Pennsylvania’s Housing Shortage Is an Economic Challenge
Pennsylvania’s housing supply was under pressure well before the pandemic. Rising construction and land costs, limited inventory, and lengthy development processes have made the problem more visible and urgent.
According to Pennsylvania’s Housing Action Plan, the Commonwealth will need approximately 450,000 new housing units by 2035. At its current construction rate, Pennsylvania is expected to fall nearly 185,000 homes short.
More than one million Pennsylvania households are already spending over 30 percent of their income on housing, while more than half of the state’s housing stock is over 50 years old.
Those numbers have direct consequences for employers. Businesses cannot recruit and retain the people they need if workers cannot find homes that fit their needs and budgets within a reasonable distance of their jobs. Workers may instead pay more of their income toward housing, move farther from employment centers, or leave the region entirely.
Housing supply therefore affects commuting patterns, workforce mobility, wages, business expansion, and the overall cost of economic growth.
Federal Action Meets Local Implementation
At the Chamber’s September Policy Pulse, Reidenbaugh identified zoning, permitting, and land-development approval processes as significant barriers to increasing Pennsylvania’s housing supply.
PICTURED: Harrisburg Regional Chamber & CREDC Board President Alisa Harris, Vice President of Government Affairs at The Pennsylvania State Alliance of YMCAs; Stacie Reidenbaugh, President & CEO of 10,000 Friends of Pennsylvania; Kara Luzik Canale, Vice President, Strategy & Chamber Impact, Harrisburg Regional Chamber & CREDC.
With more than 2,500 municipal governments across the Commonwealth, developers may face different zoning ordinances, subdivision requirements, and approval procedures from one community to the next. Some zoning codes have not kept pace with changing housing needs, building practices, or the ways people live and work.
Developers may also encounter duplicative reviews, inconsistent requirements, and approval processes that take years. Because they often pay interest on land and project financing throughout that time, delays can raise costs, prevent projects from moving forward, and ultimately increase what residents pay.
At the U.S. Chamber’s Housing Summit, the session “The ROAD Ahead: State and Local Policy Implementation” examined the same challenge nationally. The panel featured Jake Day, Secretary of the Maryland Department of Housing and Community Development; Steve Stivers, President and CEO of the Ohio Chamber of Commerce; and Gina Metrakas-Suber, Vice President and Head of Federal Advocacy at Capital One. Colin Higgins, Executive Director of the National Housing Crisis Task Force, moderated the discussion.
The bipartisan 21st Century ROAD to Housing Act, which became law this summer, includes reforms intended to increase housing supply, streamline certain reviews, modernize manufactured-housing rules, and unlock additional private investment.
Panelists emphasized, however, that federal legislation alone cannot produce the housing that communities need. Homes are ultimately built locally. States and municipalities determine where different housing types are permitted, how quickly projects are reviewed, and whether infrastructure is available to support development.
Passing legislation is an important step. Turning that legislation into homes will require coordinated implementation across federal agencies, state governments, municipalities, developers, lenders, and local zoning authorities.
Housing Must Be Part of Regional Planning
During the U.S. Chamber session “Building the Foundations for Growth,” Ross Perot Jr., Founder and Chairman of Hillwood Development Company and Chair of the U.S. Chamber Board of Directors, joined Brad Cheves, President and CEO of the Dallas Regional Chamber, to discuss lessons from the growth of the Dallas–Fort Worth region and AllianceTexas.
The conversation demonstrated why housing must be planned alongside jobs, transportation, schools, infrastructure, and quality-of-life amenities.
When a business considers investing or expanding in a region, the question is not simply where the company will locate. Business leaders also need to know where their employees will live, how they will travel to work, and whether the surrounding community offers the infrastructure and quality of life needed to attract and retain people.
Perot and Cheves also highlighted the importance of public-private partnerships and long-term regional planning. Successful development depends on local governments, businesses and developers understanding what they are collectively trying to accomplish, and being willing to contribute the resources, investment, and leadership needed to make it possible.
That same connection emerged during September’s Policy Pulse through the discussion of adaptive reuse and development in areas where infrastructure already exists.
Converting offices, commercial properties, or former industrial sites into housing can be complex and expensive. Developers may need to upgrade utilities, add kitchens and bathrooms, or address structural, accessibility and fire-code requirements. Still- adaptive reuse can bring new life to underused properties while creating homes near existing roads, water and sewer systems, transit, businesses, and community amenities.
Increasing housing supply does not mean building everywhere without regard for local conditions. It means planning regionally and creating more choices in places where infrastructure can support them- while connecting residents more effectively to jobs, services and transportation.
Expanding What and How We Build
Both conversations also emphasized the need for a broader range of housing types.
Reidenbaugh discussed options including starter homes, townhomes, duplexes, multifamily housing, manufactured homes, and accessory dwelling units- or ADUs. These smaller, independent homes- such as garage apartments, in-law suites, and backyard cottages- can support older adults who want to remain near family, young adults saving for a home, or households seeking an additional source of income.
One proposal, House Bill 2186, would reduce local barriers to creating ADUs. Other proposals would use preapproved housing plans to eliminate repetitive technical reviews and make the development process more predictable.
The U.S. Chamber Summit session “Scaling Housing Supply” expanded that conversation on the national level by examining manufactured housing as a potentially scalable solution. The discussion featured Sam Landy, President of UMH Properties, and Tim Larson, President and CEO of Champion Homes, and was moderated by Lesli Gooch, Ph.D., CEO of the Manufactured Housing Institute.
Panelists explained how modern manufactured homes are built in controlled environments under federal standards, allowing for more consistent and efficient production. Manufactured housing is also becoming increasingly flexible, with the potential to provide smaller homes, duplex-style configurations, multigenerational housing, and other options for workers, older adults, and first-time homebuyers.
But producing a lower-cost home is only one part of the equation. Land, utilities, roads, site preparation, permitting, financing, and local approvals can quickly erode those savings.
Innovation in how homes are built will only make a meaningful difference if zoning, infrastructure, and financing allow those homes to reach the people who need them.
The Business Community Has a Role
Housing markets do not stop at municipal boundaries. Neither do labor markets, transportation systems or regional economies. Addressing the shortage will require local knowledge, state and federal coordination, private investment, and bipartisan cooperation.
It will also require the business community to remain engaged.
Employers can provide elected officials with real-world examples of how housing affects recruitment, retention, and expansion decisions. Developers and lenders can identify the policies and processes that add unnecessary time and expense. Chambers can convene those voices, connect housing to economic growth, and help communities understand why increasing supply benefits current residents as well as future ones.
The Harrisburg Regional Chamber will continue connecting what we hear from members locally with the state and national policy conversations shaping housing production. Our involvement in housing is not a departure from our work on workforce and economic development; it is an essential part of it.
We are grateful to Stacie Reidenbaugh for sharing her expertise, to the U.S. Chamber for convening leaders around potential solutions, and to our members for continuing to bring their experiences and questions to these conversations. Their participation makes it possible for us to advocate for policies that support a stronger workforce, a more competitive economy, and communities positioned for sustainable growth.
ABOUT HARRISBURG REGIONAL CHAMBER & CREDC
For 140 years, the Harrisburg Regional Chamber & CREDC has served as the region’s catalyst for economic prosperity. The organization combines business, community, and economic development services to enhance the region’s vitality and livability. The Chamber is a five-star accredited chamber through the U.S. Chamber of Commerce—a distinction held by fewer than 1 percent of chambers nationwide. CREDC is the region’s toolbox for economic development. It is the only Certified Economic Development Organization (CEDO) approved by the Commonwealth’s Department of Community and Economic Development to perform economic development activities regionally using Pennsylvania’s funding programs across Cumberland, Dauphin, and Perry counties.
