Arizona is experiencing rapid population growth, while Pennsylvania faces a decline; both struggle to meet housing demands.
These states illustrate different aspects of the broader national housing crisis.
The escalating costs of homes and rents are significant concerns for voters this election cycle.
In pivotal swing states likely to influence the outcome of the U.S. presidential election—including Michigan, Wisconsin, Pennsylvania, Arizona, Georgia, North Carolina, and Nevada—residents have been disproportionately affected by rising housing expenses. This situation stems from years of insufficient construction activity, an influx of new residents, soaring building costs, and bureaucratic hurdles.
"Since 2017 in six out of seven swing states analyzed by us at Pew's Housing Policy Project," stated Alex Horowitz in an interview with Business Insider using data from Zillow and Apartment List. "Home prices have surged beyond the national average—which itself is already quite elevated." He added that rent increases have also outpaced national trends across all seven states.
Arizona and Pennsylvania serve as prime examples showcasing how various regions grapple with inadequate housing supply despite differing demographic trends.
Zoning Challenges Amid Arizona's Population Surge
For many years now, Arizona has ranked among the nation's fastest-growing regions. The development of sprawling subdivisions initially helped accommodate this growth while keeping housing prices relatively stable through much of the early 2010s.
The COVID-19 pandemic intensified pressures on Arizona's real estate market. Since 2020 alone, hundreds of thousands have relocated to Arizona. As demand skyrocketed alongside disrupted supply chains that inflated construction expenses significantly—home prices soared by 55% since January 2020 compared to a national increase averaging around 45%. Rents also rose by approximately 27%, surpassing the national average increase which stood at about 22%, according to Horowitz’s analysis.
A glimpse into ongoing construction efforts in one of Arizona's rapidly expanding communities.
Mario Tama/Getty Images
Experts attribute part of Arizona’s home shortage to restrictive zoning regulations prevalent throughout many cities within the state. These laws often favor large-lot single-family homes over more affordable multi-family units or denser developments that could alleviate some pressure on supply constraints.
"The land near job centers has become increasingly scarce after decades marked by substantial residential development," remarked Ben Metcalf from UC Berkeley’s Terner Center for Housing Innovation during his conversation with Business Insider.
Additonally concerning is that water resources are dwindling as well; state officials revealed last year that there isn't enough groundwater available to sustain all future residential projects approved around Phoenix area neighborhoods.
Pennsylvania Faces Worker Shortages Despite Population Decline
Two thousand miles away lies Pennsylvania where residents too confront significant challenges related to inadequate housing availability amidst declining population figures.
Home values here increased by approximately 39% since January 2020 even though estimates indicate around
41k people left since then.
Similar issues plague this state as it has underbuilt its residential properties following economic downturns stemming from
2008 financial crisis which devastated local markets.
Compounding these problems further is an acute shortage within its workforce dedicated towards construction jobs—a trend reflected nationally but particularly pronounced here according Bureau Labor Statistics data indicating stagnation post-pandemic recovery phase despite overall job growth elsewhere.
