Montgomery planning officials warn county is falling short of housing goals as permitting plunges

Jason Sartore, director at Montgomery Planning, told the Montgomery County House Delegation on Jan. 23 that the county is producing far fewer new homes than needed to meet regional targets and that market and financing conditions are suppressing construction.

Sartore said Montgomery Planning approved more than 1,800 dwelling units last year but that permitting in 2025 fell to under about 1,300 units — the fewest since the last recession. He said multifamily permitting effectively stalled for four consecutive quarters before a late‑year uptick that produced 602 permitted multifamily units for 2025, most of which he said were income‑restricted.

"If we don't make the necessary changes now, we run the risk that our neighborhoods are gonna lose the diversity that people cherish," Sartore said, urging attention to production and affordability across the county.

The presentation placed the shortage in the context of shifting housing types and prices: the county’s single‑family share of the housing stock declined from 92% in 1940 to 46% today, yet more than 91% of residential land remains dedicated to single‑family uses, Sartore said. He highlighted demolition‑and‑replace trends — nearly 5,200 demolitions since 2000 — and showed that in 2025 the average detached home sale in Montgomery County was nearly $1,050,000 while attached units averaged about $483,000.

Sartore described a new online development tracker and a pipeline review that found roughly 27,000 unbuilt units with at least partial approvals, of which about 13,500 had full planning approval. He cautioned that approvals do not guarantee construction: owners must still secure financing, finalize plans and obtain building permits.

The briefing summarized recurring reasons developers told staff for delaying projects: high interest rates, construction costs, lower valuations, and an uncertain market. "We heard that market conditions are brutal," Sartore said. He also reported that some interviewees cited the county’s rent stabilization framework and the absence of permanent exemptions for new construction as a factor that has chilled capital markets.

Delegation members asked a series of follow‑up questions. Delegate Spiegel suggested seeking help from state agencies to analyze complex housing issues; Sartore said staff would welcome any additional resources. Delegate Qi asked whether state laws intended to speed permitting had had a measurable effect; Sartore pointed to process improvements — electronic plat signing and faster review paths in some cases — but said the 2025 drop has multiple causes and is not fully explained by local process alone.

Delegates also raised accessibility and universal design, transit‑oriented housing, and construction‑cost drivers. Planning staff agreed to provide a focused package of transit‑proximity maps and data for legislators and to engage the county’s Commission on Aging on universal‑design issues.

Why it matters: Montgomery is a high‑demand county where rising prices and constrained supply shape both local policy and statewide housing goals. Planning officials framed the problem as structural and multifaceted — requiring funding, regulatory adjustments and regional coordination — and asked legislators to consider targeted policy and financial tools as the General Assembly debates housing measures this session.

Next steps: Planning staff said they will provide legislators with additional data on transit‑oriented development, engage with state partners on potential supports, and continue outreach through the department’s community planning academy and development tracker.