With the 2026 Legislative Session approaching, MACo is profiling major issues, including affordable housing, that stand to gather significant attention.
Both the 2024 and 2025 legislative sessions saw an unprecedented amount of pro-growth, pro-housing development legislation. At the forefront of both sessions were several bills from the Governor, addressing topics including density bonuses, regulatory certainty, and other reforms. MACo also played a pivotal role, championing a historic slate of housing initiatives, including efforts to address vacancies, regulate short-term rentals, and authorize accessory dwelling units. While no significant housing bills were passed in 2025, the 2026 session promises to again center on housing. The Governor will be championing two new bills focused on regulatory certainty and starter homes. Counties, for their part, will bring their own package: the Build Affordably in My Back Yard (BAMBY) Act, which seeks to address market tools, land use, tenant/landlord issues, and state actions.
The 2026 Issue Papers provide a concise overview of the state of housing in Maryland and the legislative history since 2024. According to DHCD’s Housing Needs Assessment, released earlier this year, the state needs 590,000 new housing units to accommodate projected growth by 2045. Average housing costs have increased 39% ($320,600 to $446,400) between 2019 and 2025, and fewer than half of Marylanders can afford the average-priced home. Most noteworthy for counties, the papers list two major contributing factors,
Contributing Factors
- Construction costs have increased nationwide, with the national average cost of construction of a single-family home increasing by 80% between 2017 and 2024, from $238,000 to $428,000, attributable to (1) rising costs of materials and labor and (2) expanding policies, regulations, and fees.
- The level and nature of land use and development regulation in Maryland limits the amount of land available in the State for higher-density housing, adds to the length and complexity of the development process, adds to costs of development, and can have a deterrent effect on investment in housing development.
While the first bullet is largely outside the General Assembly’s control, land use and development regulations fall within its purview and could be a ripe area for preemptive legislation. Looking ahead, counties will undoubtedly be central in the upcoming debate on how best to address Maryland’s housing shortfall.
