09/18/2026
This week, the Department of Housing & Community Development outlined to members of the House Economic Matters Committee the factors causing Maryland’s housing crisis. The state has a shortage of 100,000 units and our housing costs are some of the highest in the nation.
One of the factors, which Republicans have pointed out for years, is that housing costs are high due to lack of supply caused by excessive regulation. “And the reason we’re not making money in this state is because we have a tremendous amount of regulations that it’s just crushing business … MDH, MDE — they’re crushing us as far as what we can and can’t do at the local level,” stated Del. Steve Arentz.
Earlier this year, a report issued by the Department showed the state is falling far behind on new construction: Maryland currently permits about 18,000 new housing units per year, but the state needs nearly 39,000 new homes annually by 2030 just to keep up with demand. This shortage is driving higher home prices and rents, making Marylanders spend a larger share of their income on housing and forcing residents to move out of state all of which contribute to less revenue for the state. The state needs to ease regulatory burdens to lower the risk for developers so they will invest and build the homes that we need.
Developers say that having to navigate the “complex web” of federal, state and local regulations contributes to the rising cost of housing and rent, which winds up pricing more and more Marylanders out of housing options. And state officials largely agree.