Since assuming the position of President of the Chester County Chamber of Business and Industry (CCCBI) in 2022, I have had the opportunity to travel throughout Chester County and meet with Chamber members, other job creators, and community leaders to hear their input on items that impact their respective sectors.

Whether in the hospitality industry, manufacturing region, healthcare providers, or our large financial institutions – the feedback has consistently listed that the workforce continues to be an issue for employers of all sizes.

A myriad of factors has led to this workforce shortage, including lack of childcare, limited access to mass transit, and shortage of affordable housing options for workers.

Affordable housing has a negative connotation in 2023. But why? According to the Chester County Planning Commission, the median house price in Chester County just soared to $467,000. You read that right. The median house price. That’s up $127,000 in the last 5 years.

More alarming, the average list price is $575,000. Add in mortgage rates nearing 7% and record-low inventory levels, it’s almost impossible to buy an “affordable” house in our county.

The days of the affordable 3 bed, 2.5 bath house for $300,000 are long gone. First-time buyers in Chester County must now earn an annual salary of $130,000 so that the cost of housing does not exceed 30% of their income.

If you’re renting, which many Chester County millennial and Gen-Z workers are, you’re likely paying anywhere from $1,800 to $2,500 for a two-bedroom. These are some of the highest prices in the Commonwealth.

What does this have to do with business? Employers are forced to operate beneath their workforce potential because they cannot attract or retain workers. The county’s housing market is suffering from a very serious supply and demand imbalance. When your employees cannot afford to buy their first home or their next, larger home as they expand their family, they may resort to moving to neighboring Delaware, Montgomery, or Lancaster counties.

In addition, when they grow tired of sitting in endless traffic on 202, Route 30 and 422, they may begin to look for a new job, with a more flexible work-from-home policy.

Post-pandemic, many employees cite the length of commute or lack of public transit as reasons why they will not return to work, even when offered higher compensation. Many areas of Chester County suffer economically due to the lack of public transportation.

While construction has begun on the new anticipated $65 million train station project in Coatesville, bringing SEPTA service back to the city, other high-density hotspots such as Phoenixville and West Chester have no rail access. Southern Chester County lacks rail and trail access; unless you live and work along the R5, the suburbs are sorely lacking in public transportation. This not only affects employers of all sizes; it also affects our tourism and economic development opportunities.

Surprisingly, despite continued annual population growth, Chester County residents continue to age. The increased senior population will have significant impacts on housing in the County. Municipalities will need to adapt their housing options as seniors age by creating additional housing diversity including smaller, affordably-priced, and age-restricted housing units.

So, what do we as employers need to advocate for on behalf of our employees?

Our long-term housing issues will not be solved without generating more units to meet growing housing needs. A logical first step is addressing burdensome zoning laws which could in turn, lead to an increase in affordable housing. Since housing development is a workforce and economic development issue, incentivizing new and modern housing development is critical for both employers to attract the necessary talent and for local governments to grow the next generation of the tax base.

Chester County Chamber of Business & Industry (CCCBI) recently met with municipal managers across Chester County to discuss restrictive zoning laws, the “NIMBY” (Not in My Backyard) outlook, parking requirements, and the need for more housing throughout the county. By having open conversations with municipalities where businesses are located, employers can be a leader on the housing issue and assist the “missing middle” employees who work for them. 

In 2022, the PA Legislature passed the bipartisan Whole-Home Repairs program, a plan to help offset higher development costs for affordable multifamily rental properties and give grants for the development and rehabilitation of affordable housing. CCCBI urges the General Assembly and Governor Josh Shapiro to consider expanding these programs utilizing unused federal American Rescue Plan Act (ARPA) funds.

The Chamber also encourages the removal of regulatory impediments that delay and add costs to developers who are eager to build new housing and rental units. Governor Shapiro’s recent executive order to improve permitting times is a welcome first step in allowing developers to streamline efficiency in the transition from planning and permitting to breaking ground.

Chester County municipalities can follow Governor Shapiro’s example by more quickly and predictably approving developments that meet zoning laws, and enacting and implementing appropriate land use regulations with ordinances and regulations that keep up with changing state law and do not supersede it.

SEPTA’s plan to improve routes and the work of the Transportation Management Association of Chester County (TMACC) LINK and SCOOT lines are important actions to get workers to their jobs. CCCBI welcomes efforts to further connect Chester County communities via mass transit.

By addressing mass transit needs and regulatory barriers that impede the construction of new affordable homes and rental units, we can help bring down costs for families and speed economic growth in Chester County, all while preserving its natural beauty and keeping it a wonderful place to live.

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Laura Manion is the President and CEO of the Chester County Chamber of Business and Industry. She is a lifelong Chester County resident.