CHESTER COUNTY, PA — A new Zillow® analysis reveals the U.S. housing deficit has climbed to a record 4.7 million units, a shortage that is rippling into local markets like Chester County, where the effects are becoming more pronounced.
In June, Chester County’s median home price fell to $599,000 — a 5.8% drop from the previous month — even as competition among buyers remained fierce. Notably, 75% of homes sold above asking price last month, highlighting intense demand despite softer pricing.
According to Zillow’s report, America added 1.4 million homes to its housing stock in 2023. However, this growth lagged behind the 1.8 million new families formed that same year, highlighting an imbalance driving affordability challenges nationwide. In Chester County, this mismatch is reflected in tight inventory and strong buyer competition. There are currently only 1,437 homes listed for sale in the county, leaving limited options for buyers and continuing to fuel bidding wars.
“The unfortunate fact is that we still don’t have enough housing in this country for people who need it. Construction has helped prevent the housing deficit from ballooning, but it hasn’t yet begun to close the gap,” said Orphe Divounguy, senior economist at Zillow.
The shortage is impacting first-time buyers most acutely. Nationally, a median-income family today would need an additional $17,000 in income to afford a typical home compared to 2019. Chester County, with its higher-than-average prices and limited inventory, mirrors this trend, pricing many potential buyers out or forcing them into prolonged searches.
At the heart of the national issue is a mix of underbuilding dating back to the Great Recession and stringent local zoning laws that limit density. Zillow points out that areas with fewer building restrictions have seen faster growth and more balanced markets, suggesting that local policy reform could help alleviate pressures.
For Chester County residents, this national context explains why even as prices slightly soften, the market remains challenging. High competition and limited supply continue to frustrate buyers, and without increased building or zoning changes, relief is unlikely to arrive quickly.
Experts and advocates, including Zillow, are pushing for policy solutions such as relaxed zoning laws to enable higher-density housing and more affordable options like accessory dwelling units (ADUs) and duplexes. Such measures could help address both national and local deficits, offering more choices and stabilizing prices.
As the housing shortage deepens, Chester County stands as a local example of a broader national trend — a market where the gap between supply and demand remains a stubborn barrier to affordability.
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