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Legislative Update |
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The Unique Business of Housing in Chester County |
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Co-Authored by: Chester County Chamber of Business and Industry, Downingtown Area Chamber of Commerce, Exton Region Chamber of Commerce, Greater West Chester Chamber of Commerce, Oxford Area Chamber of Commerce, Phoenixville Regional Chamber of Commerce, Southern Chester County Chamber of Commerce and the Chester County Economic Development Council |
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Homeownership is an essential cornerstone of the American dream. However, Americans now face a series of roadblocks to obtain the dream of home ownership. All across the country, home prices have skyrocketed, mortgages are unobtainable, less homes are being built, and those that are built have become smaller.
Unfortunately, Chester County has become the epitome of this phenomenon. While all of Pennsylvania grew by 6 percent, Chester County has grown a staggering 23 percent over the past 20 years. This is 100,000 new residents according to the latest Census.
Housing in Chester County hasn’t kept pace with that growth, and we are living its effects. According to Zillow, homes in Chester County increased in prices by 5.2 percent over the past year, growing faster than the national average. The average price for of a home in Q2 of 2024 was $545,000, with the average home selling for $82,751 more ($627,751). Average rent in the County is over $1,700, which is 40% higher than the rest of Pennsylvania.
In our boroughs, we are seeing one-bedroom 900 square foot apartments starting at $1,900 and two-bedroom 1,200 square foot apartments renting for up to $3,700/month. According to the National Low Income housing Coalition (NLIHC) data, Chester County renters need to average a hourly wage of between $29 to $39 to afford a 2-bedroom rental across the County.
These trends continue to make housing unaffordable and unobtainable. In its 2023 Housing report, the County found that only 23 percent of homes are affordable to households earning the median income for the County. We’re also losing thousands of affordable rental units, locking out individuals from the County’s workforce. From tech to the hospitality sectors, Chambers of Commerce across the county have heard from their member employers that they cannot fill positions. Nevertheless, average wages earned by essential workers prevents them from affording a home of their own.
Essential workers are the teachers, school aides, police, EMC staff, craftsmen, grocery store workers, truck drivers, warehouse workers, 911 dispatchers, and those who work at your favorite restaurant or small business, that provide vital services in every community across Chester County. We forget how important these often-underpaid people are to a fully functioning and prosperous community. 40% of those earning $60,000 or less in their Chester County jobs do not live in Chester County because they cannot afford to do so. These workers increase congestion on our highways and are susceptible to leaving their employment for jobs located closer to where they live.
Why has affordable housing lagged in Chester County? One of the reasons is that it suffers from a particularly strong strain and short-sighted version of NIMBY-ism (Not In My Back Yard). There is continuous criticism of new housing complexes, and it is understandable why - Chester County is an attractive place to live with beautiful open space and historic down towns, low crime, good schools, and¾our economy is still growing by the millions every year. Adding new housing and developing land for housing is fundamentally a change not wanted by all, but conversely, artificially stalling new housing development puts Chester County’s prosperity and desirability at risk.
New construction only supports 1/3 of the housing supply needed. The other 2/3 comes from sale of existing homes, which is not happening due to the “locked in” effect. Many homeowners today financed their mortgages at rates between 2 and 4 percent. With mortgage rates ranging from 6 to 7.5 percent over the last two years, people are staying put.
It prevents business from attracting talent because there is no place for that talent to live. Workforce shortages drive up the cost of labor, which means rising prices and inflation. This harms residents regardless of income-level. The chipping away of disposable income through the increased cost of housing and services means less money can be saved and invested.
The increasing demand for housing is not a temporary problem that can be passed over in perpetuity, it is an issue that will remain until it is addressed¾and if not addressed soon it will impact our economy. It limits employers’ growth or worse – leads to businesses relocating out of the County.
Consider this piece a pledge on behalf of the Chambers and Economic Development Council to do our part to make sure the business community is at the table to develop creative solutions to address this very real threat to our vibrant community. We are calling on every stakeholder involved to embrace smart growth policies that protect the County’s core values, while also welcoming new residents who can share in the unique qualities that make our neighborhoods so special.
Affordable housing is key to ensuring that Chester County remains a vibrant, inclusive community, where everyone has the opportunity to live, work, and thrive.
Chester County Chamber of Business and Industry Downingtown Area Chamber of Commerce Exton Region Chamber of Commerce Greater West Chester Chamber of Commerce Oxford Area Chamber of Commerce Phoenixville Regional Chamber of Commerce Southern Chester County Chamber of Commerce Chester County Economic Development Council |
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Legislation Tracking |
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Pennsylvania's Economic Future Depends on Reliable Public Transportation Authored by: Chellie Cameron, President & Chief Executive Officer for the Chamber of Commerce for Greater Philadelphia |
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Greater Philadelphia is facing a challenge that could derail our entire economic future: Southeastern Pennsylvania Transportation Authority (SEPTA)'s looming fiscal cliff. |
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You may have seen my recent letter to the editor in the Philadelphia Inquirer on the recently passed Pennsylvania state budget provides SEPTA with $46 million - a mere fraction of the $240 million needed to avoid devastating service cuts and fare hikes that would greatly impact our residents and commuters. Lawmakers decided not to adopt a sensible dedicated funding source that would have supported transit agencies across Pennsylvania. Instead, they opted to allocate one-time dollars for transit, only briefly delaying the Commonwealth’s crisis.
With the announcement of fare increases, we have already been offered a small glimpse into the steps SEPTA must take to close its budget deficit. The proposed fare adjustments would result in an average increase of 7.5%, but they are just a start to the burdens riders will begin to feel due to the inaction of legislators. SEPTA has also been forced to implement a hiring freeze, restrict employee travel, and restore parking fees at many of its stations. For residents and the local businesses they patronize, the consequences will only escalate from here. Without immediate action from our state lawmakers, service cuts, steeper fare increases, and layoffs come next, bringing catastrophic results.
This is an economic emergency, and the business community is calling on our state lawmakers to act decisively this fall to implement a dedicated and adequate funding solution for public transportation.
Public transportation is the backbone of Southeastern Pennsylvania’s economy. While our region represents only 5% of Pennsylvania’s land area, we generate 42% of the economic activity and 38% of the tax revenue the entire Commonwealth relies on each year thanks in no small part to SEPTA’s system. Approximately 700,000 commuters in Greater Philadelphia rely on SEPTA daily, connecting our workforce to job opportunities, bringing customers to our businesses, and ensuring that our community has access to health care and education. Without reliable and affordable transit, Pennsylvania’s ability to attract and retain talent, businesses, and investment is severely compromised.
Moreover, reduced transit service widens economic disparities and hinders our region's progress toward equitable growth. As employers, we recognize that a diverse, accessible workforce is crucial for innovation and competitiveness in the global market.
Our business community is gravely concerned for the future of SEPTA. But we’re not just calling for action – we're actively investing in transit solutions. A prime example is SEPTA's Key Partner Program, which offers all-access fares to all employees of participating employer organizations. To date, over 50 employer partners have enrolled, providing almost 100,000 riders with unlimited access to the SEPTA system. This participation accounts for nearly one-third of SEPTA's revenue, clearly demonstrating the value employers place on investing in both the transit system and their employees' commuting needs.
We cannot afford to let SEPTA enter a death spiral of service cuts, ridership decline, and economic contraction. The consequences would be dire for our region’s residents, bringing decreased property values and job losses that have the power to devastate our communities. This scenario would make our region less competitive and less prosperous, reversing years of economic progress.
As we approach 2026, when the eyes of the world will be on Philadelphia for the celebration of the United States' 250th birthday and major sporting events, we have a unique opportunity to showcase a world-class transit system that supports a thriving, modern economy. Let's not squander this chance.
The choice is clear: invest in our transit system now or pay a much steeper price in lost economic opportunities and diminished quality of life for all Pennsylvanians for years to come. The future of our state’s and region's economy hangs in the balance. Let's choose growth, equity, and prosperity. Let's fund SEPTA and secure a brighter future for our community. |
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