🏠 Why Middle-Income Families Are Struggling to Buy Homes in State College, Pennsylvania

stacy5526
Jun 24, 2025
2 min read

Updated: Jul 3, 2025

Let's start off with a trivia question!

Question:

According to the Centre County 2023 Housing Needs Assessment, which of the following households is least likely to afford the median-priced home in State College without being cost-burdened?

A) A two-income household of public school teachers

B) A family with one registered nurse and one retail worker

C) A dual-income household of Penn State professors

D) A single high-earning tech professional

The answer — and why it matters

✅ Quiz Answer: B) A family with one registered nurse and one retail worker

This household earns too much to qualify for housing assistance — but not enough to comfortably afford the median-priced home in State College, which was $345,000 in 2022. While middle-income families may make the $105,000 to afford the mortgage, they may be cost-burdened by other debt or limited savings.

💡 Who Are Middle-Income Households?

They’re essential workers: Teachers, nurses, first responders, small business employees, Penn State staff. These families earn 81%–120% of the Area Median Income (AMI) — and they are increasingly priced out of homeownership in our community.

⚠️ The Missing Middle Crisis

Middle-income earners are caught in a gap:

Too much income for subsidies
Too little income for market-rate homes

This growing divide is an aspect of the housing crisis. These households once had access to modest homes, but rising costs have pushed them out of the market — resulting in a lack of diversity, inclusion, and long-term residents in some neighborhoods.

🛠️ What We’re Doing About It

Presently, we’re renovating two homes in State College that will be available soon to middle-income, first-time buyers, and we’re preparing to purchase and renovate a third in East College Heights. We’re helping people who work here afford to live here — creating permanently affordable housing for the backbone of our community.