Affordable housing is becoming increasingly out of reach for many in Maryland, UMD study says

Housing is becoming less affordable for Maryland residents due to rising prices and slow construction, according to a recent University of Maryland (UMD) study.

The report released on July 24 by researchers at UMD's National Center for Smart Growth (NCSG) says that the state needs to build nearly 600,000 new homes by 2045 to keep pace with the projected rate of household growth.  

The study estimates a shortage of nearly 300,000 affordable housing units, with the shortage disproportionately affecting low-income residents, older adults, and residents of color.

More than half of Maryland renters spend at least a third of their income on housing, the researchers found.    

"Without further state and local policy action to support preservation of existing affordable housing and boost production of new affordable and market-rate housing, families across Maryland will continue to be burdened by rising housing costs,"  Nicholas Finio, NCSG associate director and one of the study's authors said.

In Montgomery County, the median home price now exceeds $475,000 — a 20% increase in four years.

State makes investments into affordable housing

The Maryland Department of Housing announced this week that it financed the most affordable housing in nearly a decade in fiscal year 2025.

In FY2025, the department financed 3,997 newly constructed or substantially rehabilitated units — more than 1,000 above the FY2024 total of 2,949. The state also financed $1.64 billion in new development projects and provided $1 billion in acquisition mortgages for first-time homebuyers.

Gov. Wes Moore has also announced initiatives such as the Maryland UPLIFT program, which aims to expand wealth-building homeownership opportunities in historically redlined communities.