Shapiro's $1B Plan + New Projects in Downingtown, West Goshen, and More

Governor Josh Shapiro unveiled Pennsylvania's first comprehensive Housing Action Plan on February 12. For the first time, the state has put together a detailed statewide strategy to tackle its growing housing shortage. Officials estimate that without changes, Pennsylvania will be short roughly 185,000 housing units by 2035. The plan was built over more than a year, starting with an executive order in September 2024. It draws from 18 regional roundtables, nearly 2,500 survey responses from every county.

The plan focuses on five main goals: increasing and preserving the supply of homes, expanding housing opportunities for more people, creating better pathways to stability with stronger renter and homeowner protections, modernizing zoning and development rules, and improving how state and local governments work together on housing issues.

Among the most practical recommendations are steps to cut red tape, such as model ordinances that allow accessory dwelling units like in-law suites, smaller lot sizes and setbacks, reducing or eliminating parking minimums in certain areas, and encouraging transit-oriented development near train stations and bus lines. The plan also calls for stronger tenant protections, expanded support for first-time homebuyers, and opportunities to use state-owned land or properties from faith-based organizations for new housing.

A major piece of the funding puzzle is Governor Shapiro's proposal in the 2026-27 budget to create a $1 billion Critical Infrastructure Investment Fund through general obligation bonds. This money would go toward building new homes, rehabilitating existing ones, and supporting the roads, water, sewer, and other infrastructure needed to make those projects possible.

In Chester County, these changes could open the door to more incentives for new construction, office-to-residential conversions, and zoning adjustments that make it easier to add entry-level or moderate-income homes. The effects become even clearer when you look at several local projects already breaking ground or moving forward in 2026.

In West Goshen near West Chester, the BT Carter Drive mixed-use development is moving ahead. The project includes a 200-room hotel, ground-level parking, and roadway improvements, built by the same team behind The Edge apartments. Construction is expected to start in spring 2026. This kind of mixed-use addition near the university and transit hubs brings more density, supports local jobs, and makes the area more walkable, which tends to attract buyers and renters.

At the same time, the Downingtown train station is undergoing a major redevelopment led by PennDOT in partnership with Amtrak and SEPTA. The work includes high-level platforms, new pedestrian bridges, expanded parking, and safety upgrades to replace the outdated stone arch bridge. Track removal and foundation work began late 2025 and will continue into 2026. These improvements will make regional rail service faster and more reliable, cutting commute times to Philadelphia and strengthening connectivity for Downingtown and nearby Exton. Properties in walkable, transit-adjacent zones are likely to see noticeable value increases over the next few years as a result.

Other projects are adding hundreds of new units and commercial spaces throughout the county. Together, these efforts are drawing more attention to growing areas like Phoenixville.

When you combine the statewide Housing Action Plan with these local developments, the outlook for Chester County starts to shift. The state and local initiatives together have the potential to bring meaningful inventory, possibly 10 to 15 percent more in targeted suburban areas through conversions, new builds, and zoning flexibility. That added supply could help stabilize or slow the pace of price growth in a market where medians currently sit between $550,000 and $579,000 with very low inventory.

Chester County appears to be headed toward gradual affordability relief in what remains a competitive market. Downingtown stands to gain the most from transit improvements, while West Chester benefits from thoughtful mixed-use density. The combination of state policy support and local momentum creates a realistic path toward a more balanced housing landscape in the coming years.

Let’s move Pennsylvania forward.