Every state is impacted by the national housing shortage. Housing prices have soared. Inflation has driven interest rates higher, increasing monthly mortgage costs and almost doubling the household income needed to purchase the median home. With interest rates topping 8 percent, many homeowners are unwilling or unable to sell their existing home — reducing turnover. Additionally, developers that face increasing supply and labor costs have chosen to focus on higher end property construction. Between existing units staying off the market and a shortage of new starter and affordable units, times are tough for households looking to buy or rent.
In October, NGA hosted Governors’ staff in Nashville to discuss options to respond to these challenges. Policy Directors and Deputy Chiefs of Staff for Governors received a briefing on economic trends and heard presentations from multiple states regarding ongoing regulatory and legislative efforts to address housing problems.
While housing policy is primarily controlled at the local government level, Governors are innovating to increase housing supply while keeping it affordable.
Pennsylvania Governor Shapiro’s staff discussed ongoing efforts to improve supply…