Maryland Governor Wes Moore on Tuesday rolled out a trio of housing bills that push his state deeper into the trenches of a national battle over affordability and land use.
The governor’s proposals will be introduced when the new General Assembly begins next week in Annapolis, and would boost construction near transit, legalize smaller starter homes and stabilize development rules.
“Finding an affordable place to live is one of the biggest obstacles Marylanders face in succeeding and choosing to stay in Maryland,” Moore said in a statement.
Lawmakers in both parties across the country are finding increasing agreement that housing shortages are driving affordability problems for younger renters and potential first-time buyers.
Moore’s plan puts Maryland in line with states like California, Texas, Florida, Massachusetts and Colorado that are using state intervention to ease local restrictions and promote construction near transit and job centers.
If the package passes and meaningfully increases supply, it could test whether voters reward leaders who challenge local resistance in the name of affordability.
Yet elected and appointed officials and activists in Maryland cities and counties have, predictably, already indicated that they may resist.
Concerns about local control had a major impact on how Maryland’s 2024 housing law reached its final form
This year, the Maryland Association of Counties plans to introduce its own housing packagebrand BAMBY – affordable building in my backyard.
BAMBY positions counties between “not in my backyard” opponents and the “yes in my backyard” movement that has been gaining ground in California and elsewhere, underscoring how far local officials are willing to go to maintain their zoning power.
The plan brings together tax instruments, land use changes, landlord and tenant regulations, and government actions to boost production and affordability, while maintaining significant local control.
Three bills in the middle
Moore’s package translates these broad objectives into three bills, each targeting a different bottleneck in the housing system
The Maryland Transit & Housing Opportunity Act of 2026 focuses on where new homes are built
The bill would eliminate minimum parking requirements near high-value transit locations, promote mixed-use projects near major stations and expand the state’s authority to develop land adjacent to transit access points.
State officials say the initiative could open up more than 300 acres of state land near stations, support more than 7,000 homes and generate about $1.4 billion in new tax revenue.
A second bill, the Starter and Silver Homes Act of 2026, shifts locations to what types of homes locations should allow.
It would legalize smaller single-family homes on smaller lots and allow townhouses in residential areas statewide
The government says these homes could be up to about 30% cheaper than typical new-build homes, with an explicit focus on younger buyers and seniors looking to downsize.
A third measure, the Housing Security Act of 2026, sponsored by Senators Malcolm Augustine and Del. Dylan Behler, focuses on how projects move from proposal to completion.
It would establish early vesting, establishing the rights of residential developers at the time of permit application, protecting approved projects from subsequent zoning changes, new local regulations or the risk of entitlements.
The bill also addresses regulatory delays and impact fee processes that could increase costs or derail projects after their initial approval
Proponents say the changes could lower home prices by reducing risk and timing uncertainty for builders and developers
The size of the housing affordability gap
The government views these instruments as a response to a housing shortage that is too great for additional local solutions
In October 2025, the Maryland State Comptroller published the “State of the Economy Series: Housing & The Economy” report called housing costs and supply “one of the most pressing challenges facing Maryland families.”
The annual expenditure of the state analysis to the General Assembly shows a shortage of six-figure housing units and cost burdens that now reach well into the middle class
Tenants feel the pressure the most. In 2023, 53% of renters in Maryland paid more than 30% of their income on housing, the highest share in the region.
Maryland currently has a shortage of about 100,000 housing units, according to state analysis
Planners say the state needs to build about 590,000 new homes by 2045 to meet projected growth in the number of households, boosting production from an average of about 18,000 homes per year in 2014 to about 30,000 annual new homes over the next two decades.
Between 2019 and 2025, the average sales price of a house increased by 39%, from 320,600 to 446,400.
Legislative analysts say homeownership has become less feasible even for middle-income households.
Behind these numbers are the construction economics and local regulations that Moore wants to address more aggressively regarding reform initiatives
Nationally, the average cost to build a single-family home increased 80% from 2017 to 2024, from $238,000 to $428,000, as Maryland regulations limit land for higher-density housing and extend approvals.
Analysts believe these pressures have contributed to the net population loss of about 40,000 Maryland residents per year, as people moved to states with more housing and lower costs.
What Maryland has done so far
Moore’s 2026 push builds on an earlier round of state intervention that lawmakers approved two years ago. In 2024, lawmakers passed a sweeping housing bill that targeted both affordable and middle-income production in Maryland communities.
The law focused on increased housing density, local barriers, and access to manufactured housing. It increased allowable density for certain qualified affordable projects and limited local restrictions that had delayed or blocked such developments
Lawmakers expanded where manufactured and modular homes can be located in residential zones. It prohibited local governments from banning HUD code units in single-family districts if they meet standards and are converted into real estate.
For eligible projects, jurisdictions must now allow density above the base level, often by allowing missing median housing types in single-family neighborhoods. The statute reduces procedural delays by limiting public hearings and prohibiting unreasonable restrictions on state-sponsored affordable developments.
Moore followed with a September executive order directing state agencies to fast-track housing near transit hubs and set local manufacturing targets, and he signed a separate measure allowing additional housing on single-family lots.
The local control battle moves to Annapolis
These earlier steps set the stage for this year’s battle over how far the state can go in ignoring local zoning rules.
Across the country, local governments regularly battle legislation that they say illegally takes control of zoning from city and county officials.
In Connecticut, the governor vetoed a housing bill last year after hearing from local governments. Lawmakers then returned in special session to approve a revised missing middle measure
Florida has repeatedly updated its Live Local Act to tighten state control over local decisions, reflecting similar tensions between the state and locals.
Maryland’s 2026 debate is now playing out in that national context. Moore and the state’s county leaders have already taken opposing positions
The battle could come down to a choice between Moore’s package of three bills and the provincial association’s BAMBY plan.
Lawmakers could also combine the two approaches through trade-offs, combining statewide production targets with continued local influence over where and how new homes are built.
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