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Supply crisis: 70s solutions have become 2020s problems

America is facing a supply crisis—not of resources, but of permission. From the homes we live in to the energy that powers them, our communities are struggling under the weight of a regulatory framework designed for a world that no longer exists. Many people in our communities are struggling to keep up with their vital expenses, and no major fixes have given these groups any sort of relief.

The truth is, while these issues tend to fluctuate in relevance depending on the current events of the time, one of the major root causes is persistent in our modern society.

That persistent cause is excessive overregulation.

Many of the regulations that plague our society today were created in the 20th century to fix problems of their day.

For example, zoning laws were created to prevent nuisances like loud factories from being in close proximity to housing. Large inspection laws were created to keep people safe, and, later on, ensure environmental standards were being met. But the truth of the matter is, modern problems require modern adaptations, and this now antiquated set of rules isn’t cutting it.

Housing prices are reaching the highest they’ve ever been; Redfin reported the biggest increase in over a year this April. The increase in pricing doesn’t seem to be stopping, and it’s causing many to believe that the American Dream is simply out of reach.

In Carbon County and across the Lehigh Valley, we see this playing out as young families are increasingly priced out of the very neighborhoods they grew up in. These increases aren’t just caused by cost increases in building supplies or labor; it’s caused by restrictive zoning laws that prevent the creation of additional supply even before the foundation is poured.

One problem many developers and potential residents are facing is the restrictions around zones considered “single-family”. These restrictions prevent the construction of “medium density” developments like duplexes and triplexes.

Even with only one or two additional families on these plots, a major increase in supply, and therefore a major decrease in cost, could be possible.

It’s not just buying a home that’s impacted. It’s also what you can do once you own the property.

Excessive zoning prevents at-home businesses from accepting customers. This can prevent people from gaining crucial sources of income.

Let’s use an example. A barber has a little homemade studio in a side room, and accepts clients. This, according to traditional zoning laws, is illegal. The barber, just trying to make some money to provide for themselves, would be fined and barred from further business at their residence.

The laws originally intended to keep factories away, now harm residents in our own communities just wanting to make an extra buck.

The truth is, many leaders and lawmakers have heard these complaints. “Home Occupational Use” permits have become prevalent in recent years, marking a common-sense win for those in our communities looking to run at-home businesses.

The regulatory bottleneck extends to our power lines as well. In Pennsylvania, energy costs have risen almost 20% in the last year, according to the Energy Information Administration.

Much of this is due to holdups in major energy developments. In Pennsylvania alone, there are at least six different major energy projects held up by overregulation, according to Americans for Prosperity.

Some of these weren’t even because of Pennsylvania’s regulatory bodies, they were other states that barred the pipelines from being constructed in their jurisdiction.

Power plants, pipelines, and other projects would have delivered a high supply of affordable energy to PA residents that needed it the most. However, overregulation caused these projects to be stalled, and energy bills for our communities to continue to rise.

The solution is clear. In both of these cases, simple reforms to the existing policy can open up growth and drive down costs while still ensuring safety in our communities.

Opening up zoning laws promotes prosperity and growth without affecting crucial safety measures. Removing unnecessary blockades in energy development can bring prices down by major margins, and make our communities as a whole more prosperous.

While safety standards are the bedrock of a functional society, we have reached a point of diminishing returns where the ‘red tape’ is strangling the very people it was meant to protect.

We’re on a path towards the average person not being able to sustain themselves, and if our leaders do not step up and modernize the regulatory barriers that prevent growth and prosperity, that path will look bleak and dark for years to come.

It is time for Pennsylvania lawmakers to prioritize ‘Permit Reform’ and for local zoning boards to embrace the ‘Missing Middle.’ Our future depends on it.

Connor Stay is a student in the Class of 2028 at Lehighton High School, where he focuses on economic development and local policy.

Connor Stay