Maryland must tackle interconnected land use, housing, transportation, economic challenges
Maryland is well-known for innovative state policies and reforms, including smart growth, but the state missed key opportunities this year to build on that legacy. While approving a half-billion-dollar package to close a major transportation funding gap, the legislature (primarily the Senate) failed to adopt bills that would ensure the funds shift the state in a new direction toward abundant and affordable housing and transportation choices.
Maryland's land use, high housing costs, transportation challenges and economic doldrums are interconnected. They require new approaches, not just patching budget holes to fix.
Homes are expensive in part because Maryland communities allow too little housing near transit, services and jobs. This contributes to sprawling, car-dependent development, further fueled by too much public spending on oversized roads and highways. The result is long commutes, more driving to reach stores and services, and higher transportation costs for families. The average new car in the U.S. costs almost $50,000, and last year 17% of American drivers said they had to take on a second job to help pay for their car.
Instead of funding more of this status quo, Maryland needs to help families stay here, with affordable access to opportunity. Fostering walkable, vibrant activity centers with good transit and a range of housing types and prices near jobs will help current residents and also attract the next generation of skilled workers and industries.
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The House of Delegates passed several valuable smart growth bills:
Transit-oriented development (House Bill 80) to remove obstacles to building housing and mixed-use development near rail stations;
Transportation and Climate Alignment Act (House Bill 84), ensuring the state's transportation investments support its climate change goals while giving residents more travel options;
Metro Funding Modification Act (House Bill 467), fixing dedicated state capital funding for the D.C.-area Metro system to account for inflation; and
Gov. Wes Moore's Housing for Jobs Act (House Bill 503), which would have required the state's job centers to address housing needs, although it was watered down into largely a study bill.
Unfortunately, the Maryland Senate did not advance any of these bills to a vote.
The Senate, to its credit, did pass:
Split-rate property tax enabling legislation (Senate Bill 472) that would allow local governments to create tax structures that capture the value of land near assets like rail stations while incentivizing new development, though the House did not pass it; and
Accessory dwelling unit bill (House Bill 1466) that will require local governments to allow construction of a smaller independent home on a lot with a single-family detached house. The House concurred with the final bill and the governor signed it.
We know that legislators had a lot on their plates, with a sizable budget gap and chaotic federal backdrop. However, most of the smart-growth bills that didn't pass would have cost little or nothing to government coffers – and would actually save the state money over time through reduced infrastructure and service costs.
Realizing this vision provides interconnected benefits. For example:
Smart growth has been key to attracting and retaining Fortune 500 firms like Marriott and Choice Hotels in transit-oriented locations.
Maryland families on average would save over $3,000 per year in transportation costs if the state provided more opportunities for transit, walking, biking and accessible living.
State-owned transit-oriented development sites could support 5,000 new housing units in the Baltimore region and 2,600 new housing units along the MARC Penn Line. These Penn Line sites could generate $800 million in new state and local revenue.
Marylanders want these opportunities; 76% support more homes in job-rich areas.
Before the next General Assembly session, the Moore administration can make progress:
The Maryland Department of Transportation can adopt changes to its Chapter 30 project prioritization process to better maintain existing infrastructure, recognize good land use planning as a transportation solution, and ensure affordable and sustainable travel choices for residents.
The Department of Housing and Community Development can provide further analysis on the state's housing shortage and the benefits of new homes in accessible locations. It could also work with local governments to improve land use review to reduce time and complexity, allowing more new homes to be built faster in transit-accessible locations.
During the 2026 session, the General Assembly will have the opportunity to pass legacy-making legislation ahead of the elections. Gov. Moore, with the support of state senators and delegates, can help Marylanders address the everyday needs of housing and transportation in lasting ways, which also help the state's finances, climate resilience, and economic opportunity.
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