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The Growing Housing Crisis

By
Real Estate Broker/Owner with Mackintosh REALTORS 82894

Recently Maryland REALTORS and Governor Wes Moore brought attention to Maryland's severe shortage of housing. The State's nearly 150,000 unit shortfall will grow even more if not addressed. For the past number of years, the shortage of housing has increased by an average of 5,600 units per year. During the year ending in July 2023, Maryland issued just 15,511 authorizations for new residential construction. This is the fewest in any twelve months since July 2017 and, on a per capita basis, ranks 40th in the nation among all states.

 

 
One remedy proposed to address the issue legislatively is the "Housing Expansion Affordability Act of 2024". This would require local cities and counties to approve larger developments than their zoning currently allows in some areas. Properties would be developed with a higher density and more expeditiously by streamlining the local permitting process, reducing the number of public hearings, and preventing cities and counties from blocking new homes due to overcrowded schools.  In return for a higher density and expedited process, a developer must designate a certain percentage of units as affordable housing. 

There are many causes for the lack of housing inventory, high prices, construction costs, and Baby Boomers aging in place and not wanting to give up their low interest rate are just a few reasons fueling the problem. The housing shortage crisis is not just a local Maryland issue, but one facing many areas nationwide.   

 

 

Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Buzz - answering the how part of the housing shortage question is one that seems to end many discussions.  Imagine the possibilities if working together towards a common goal were to take place (purely rhetorical)?   

Hopefully, Maryland can address the issue.    Of course, When remains long overdue.   Yes, it's complicated, your state is not alone.  

Feb 19, 2024 01:33 PM
Buzz Mackintosh

Michael Jacobs politicians working together to solve anything, especially the housing shortage is definitely a status that says "it's complicated" ! 

Feb 19, 2024 03:30 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Buzz Mackintosh I would not call it a "crisis" but CT is also in need of more housing.  We have more Buyers than there are homes on the market right now.

Feb 19, 2024 01:41 PM
Buzz Mackintosh

There seems to be a lack of housing supply every where George Souto

Feb 19, 2024 03:31 PM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

It's interesting to hear what's happening in other parts of the country with the housing industry Buzz. Maryland residents and politicians, hopefully, can work together to figure out how to solve the lack of affordable housing.  Our market is moving along and there are a lot of buyers buying with a lot of cash.  We also have an influx of buyers as our market is far more affordable than say, some areas of CA.

I had to chuckle about a figure in your first chart - 99% of ages 18-34 think it's harder to buy a home now than for previous generations.  They clearly don't know about the crazy high interest rates of the late 70's and 80's - that kept a lot of our younger crowd at the time, renting and not buying.  Thankfully I had help from my Dad to buy a home and got my start.

Feb 19, 2024 01:50 PM
Buzz Mackintosh

  Anna "Banana" Kruchten  Frederick County, Md was the #1 Cash purchase market for housing in 2022. Many in the younger crowd think they have had it tougher than previous generations 🙃

Feb 19, 2024 03:38 PM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

The issue is many home buyers and far too little for the to be able to buy.

Good for you for getting your status back and being able to post public.

Feb 19, 2024 02:43 PM
Buzz Mackintosh

Ed Silva, 203-206-0754 ARMS to the rescue !

Feb 19, 2024 03:39 PM
Dennis Neal
RE/MAX, Big Bear - Big Bear Lake, CA
Your Home Sold in 21 Days or We Sell It For Free

Hi Buzz. Thank you for sharing. I look around and I see people all around who are in denial about the real estate market. Hope is not a plan. This market will have to be sorted out so people can afford homes again.

Feb 19, 2024 02:59 PM
Buzz Mackintosh

Dennis Neal this is a problem that will not be solved easily or very soon!

Feb 19, 2024 03:55 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Buzz,
Yes, the housing shortage is pretty much a nationwide thing. There are many solutions, but they all cost money, and some of them have potentially negative consequences. It needs to be done thoughtfully.

Feb 19, 2024 04:39 PM
Buzz Mackintosh

Carol Williams the unintended consequences of rash & many times Government decisions can be disastrous.

Feb 20, 2024 03:37 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Land costs are soaring and it’s becoming very difficult to build affordable housing !!! ….

Feb 19, 2024 05:35 PM
Buzz Mackintosh

 Michael J. Perry in Frederick County the impact and permitting fees are over $40K before the shovel goes into the ground.

Feb 20, 2024 03:39 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I wish I had perfect answers to the housing crisis experienced across much of our nation.  Obviously, building more ought to help curtail some of the problem.

Feb 20, 2024 03:27 AM
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

 Myrl Jeffcoat there is no easy solution to the problem it continues to snowball.

Feb 20, 2024 03:43 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS Buzz, on having this blog FEATURED in the Old Farts Club group!  

Feb 20, 2024 03:54 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It seems unfathomable that we have a housing shortage, with all of the building that is going on and it doesn't seem like the population is continuing to increase at the rate that it has in the past.

Feb 20, 2024 05:04 AM
Buzz Mackintosh

  Brian England they are building at a rapid pace in most places because the 2020 / covid shutdown caused such a pent up Buyer demand. We are 150K units behind here in Maryland.

Feb 20, 2024 07:13 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

The issue most people have where I am is the "affordable" part - rents and sale prices zoomed up starting in 2020. Having more and more affordable housing everywhere would be great!

Feb 20, 2024 05:06 AM
Buzz Mackintosh

 Kat Palmiotti 2020 / Covid skewed the housing market everywhere, now we have inflation & high interest rates, looks like it may be a while before the market returns to a normal pace.

Feb 20, 2024 07:10 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Thank you for taking the time to prepare and share this market information!  Very professional and informative.

Feb 20, 2024 06:29 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

All I can say is politicians talk a good game but they are the problem.... if you and I had a conversation 26 year ago I would have said approvals to build in Los Angele will take 8 months to get to the starting point... now you ask me the same question how long will approval take before I can start to build my answer is 18 months to three years... that is the Number One Problem... then add inflation to the mix, Endre

Mar 02, 2024 09:37 PM