The Trend

Affordably priced housing has long been recognized as a significant need in Chester County. The issue of affordable housing became even more pronounced during and after the pandemic with an accelerating rise in both prices and rents. Factors affecting price increases included higher demand for homes, particularly for those newly working from home and desiring more space, coupled with a limited availability of homes on the market. A rapid rise of mortgage rates from historic lows to control inflation made new mortgages even less affordable for entry or mid-level buyers who did not have significant home equity from current homes. Homeowners with existing low mortgage rates were reluctant to sell their homes and take on a new, higher rate mortgage, resulting in a lack of turnover, further reducing the number of homes coming onto the market. Another factor affecting housing availability is the increasing number of seniors who are opting to age in place. Regulatory barriers, restrictive zoning, resident opposition, and high land costs have also contributed to a deficit of new construction to meet the increasing household demand in the county. While interest rates started to come down in 2024, the rapid increase in home prices and the availability of "missing middle" homes is expected to be a long-term issue in Chester County, as well as many areas of the country.

Planning Implications

• Economic development may be hindered by the lack of affordably priced housing for the county workforce.
• The housing market is heavily impacted by interest rates which are largely out of local or state control.
• A diversity of housing options that are affordable and available across all ages, incomes, and abilities are a cornerstone of community well-being.
• There is an impact on transportation from those commuting from areas outside the county where there is greater access to affordable housing.
• Lack of affordable housing for essential workers can cause difficulty in filling jobs and declines in services.
• The decreased housing supply, as described above in Trends, has led to increasing housing prices and fewer starter homes. This in turn has led to Chester County seeing a decline in family households, while the aging population increased. If this trend were to continue, eventually school enrollment would decline, and the growing senior population would increase demands on emergency services and hospitals.

The Survey Connection

The results of the Landscapes3 Trends Survey showed the inability of employees to find workforce housing as the third highest concern noted under community and business impacts in the past five years. Increased housing costs and decreasing housing availability ranked high (just under 2nd place) for economic related priorities that should be addressed in the coming five years. Write-in respondents also noted a need for affordable housing for seniors in specific areas of the county as well as housing for special needs residents. The high cost of rentals and the challenges faced by first time homebuyers was noted under previous issues identified in Landscapes3 that are of continuing concern. Affordable housing was identified as an important component of workforce development.

Landscapes3 Connection

Providing opportunities for a diverse housing mix and accommodating housing at costs accessible to all residents were two important components of the Landscapes3 Live goal (see Live objectives A and B). Specific recommendations made to support the implementation of those objectives in Landscapes3 included: Providing housing and policy ordinance assistance, identifying new approaches for affordable housing, and exploring public/private partnerships for workforce housing (see Live Recommendations 1-4).

Since the adoption of Landscapes3, the Planning Commission has put significant effort into building on its prior housing efforts with the implementation of the A+ Homes initiative. This initiative is being undertaken in conjunction with the Housing Choices Committee, created in 2019 with a wide range of housing partners. The annual A+ Homes Forum features ideas and initiatives provided by a wide range of housing experts. An interactive map of Housing Opportunity Areas was created to show where zoning allows moderate density housing within the Landscapes3 Growth Areas. The Starter Home Pilot for expanding attainably-priced homes for first time homebuyers was opened to municipalities in 2023. Other resources made available to municipalities through our Housing webpage include the annual update of the Chester County Housing Report, the Missing Middle Housing Guide, planning tools for municipalities, case studies, and partner links. The Planning Commission's strong support of the 2020 Census, which resulted in the second highest response rate in the Commonwealth, helps to ensure that the county can receive valuable population and need based assistance. Multiple housing initiatives have also been advanced by housing partners and can be viewed on the Live success stories webpage.

Looking Forward

In addition to the housing initiatives noted above, the Planning Commission continues to explore a number of innovative options for expanding affordably priced housing, including the concept of land banking. More information will be shared as these initiative progress in the next five years.

Actions to address these trends include:

1. Continue to coordinate with housing partners to advance the principles of A+ Housing initiatives, particularly those focused on the aspect of affordability.
2. Expand and support municipal housing planning efforts including developing or updating local housing plans.
3. Assist municipalities in identifying and reducing regulatory barriers to affordable housing or which run counter to fair housing needs.
4. Produce materials that can be used to counter affordable housing "NIMBYism" in communities.
5. Create a land bank for affordable housing projects.
6. Seek additional funding and resources to support these and other housing initiatives.