Research shows rental market is short about 20,000 units for households earning less than 30 percent of the area median income, but a surplus of units is available for households at 50 percent to 100 percent of area median income
SILVER SPRING, MD – The Montgomery County Planning Board, part of The Maryland-National Capital Park and Planning Commission, was briefed on the first stage of the countywide Rental Housing Market Study at its meeting on Thursday, July 14. Kyle Talente from RKG Associates, a consulting firm based in Alexandria, VA, presented the initial findings from the research, which was conducted on behalf of the Montgomery County Planning Department and the Montgomery County Department of Housing and Community Affairs.
As noted at the Planning Board session, RKG Associates found that rental housing accounts for about 30 percent of the housing supply in Montgomery County and is concentrated around Metro lines and employment centers. Most of the County’s supply consists of older units, with only 14 percent of rental units constructed later than 2000 (55 percent were built prior to 1980).
The age of the housing supply has helped create “naturally occurring” affordable units, with a large supply of units affordable to households earning between 50 percent and 100 percent of the County’s area median income, which is around $107,000.
The study also revealed that the rental market supply is unbalanced at the lowest and highest ends of the housing market. The market is short about 20,000 rental units for households earning less than 30 percent of area median income. As a result, 80 per cent of households earning below 30 percent of area median income are cost burdened, compared to 50 per cent of renters countywide.
Background on Rental Housing Study
The Montgomery County Council, recognizing the importance of housing issues for the future of the County, approved the Rental Housing Study as part of the FY15 work program for the Maryland National Capital Park and Planning Commission (MNCPPC) and the Montgomery County Department of Housing and Community Affairs (DHCA).
An interdepartmental project management team and a technical staff committee are working closely with the consultant team throughout the study. The purposes of the study are multifaceted, with an overarching goal to identify Montgomery County’s rental housing needs, and offer holistic and sustainable approaches to meeting them.
During the first stage of the project, RKG Associates provided the Planning Department team with an overview of the data collected with respect to existing conditions, affordability conditions and rental housing supply and demand that provided an initial starting point for analysis and recommendations.
Data collection, background research, neighborhood assessment, interviews and focus groups have now been completed. RKG Associates and the Planning Department team are currently exploring approaches to rental housing undertaken by other jurisdictions and analyzing best practices in rental housing policy. Later in July 2016, the study’s advisory group will hold a brainstorming session to discuss innovative ways to address the county’s rental housing needs.
The Rental Housing Market Study is expected to be completed by December 2016 with a final report issued in March 2017.