City housing update: More than 1,200 residential units are in the development pipeline

There are more housing units in the development pipeline in Lancaster city than at any point in recent memory, data from the city’s Department of Community Planning & Economic Development Department indicates.

The department has either approved or is in the process of reviewing projects totaling 1,282 housing units, and developers have proposed projects totaling another 1,971, for a total of 3,253, Director Chris Delfs told the audience at the Lancaster City Alliance’s Downtown Merchants meeting this week.

That contrasts with recent history: Just 167 units have been built this year, and just 314 since 2018.

To be sure, there are headwinds, Delfs said: Interest rates are rising, and the cost of labor and construction materials has spiked nationwide.

Still, “I feel really, really bullish and excited about what I have heard” in discussions with developers and business leaders, Delfs said. “… I think the sky’s the limit.”

In a follow-up interview with One United Lancaster, he said he’s encouraged that in most cases, developers are willing to fund their projects through private investment, rather than seeking tax exemptions or other city subsidies. That speaks to the improvements in the city’s economic health over the past couple of decades, he said.