A Push for Affordable Housing in Maryland
The Maryland Association of Realtors wants affordable housing to be a top priority for Maryland’s new legislature and governor - and it is hoping the state’s homeowners and aspiring homeowners will help.
The association has formed the League of Maryland Homeowners, which it hopes will be a grassroots group that helps educate the public and government about obstacles to home ownership.
The association has sent letters to its 34,000 members asking them to encourage clients who are concerned about home affordability in Maryland to join the group, says President Ilene Kessler.
The league’s newly launched website includes an open letter to Governor-elect Martin O’Malley, urging him to take action to mitigate the rising cost of homes for those seeking a Maryland mortgage. Priorities for the league will coalesce more after the legislative session starts in January, Kessler says, but some of its early suggestions include:
- A state income tax credit of up to $5,000 for first-time home buyers, and a tax credit for employers who provide or match employees’ down payments and rental security deposits.
- Better coordination among state agencies overseeing transportation, development and economic planning to ensure that people have opportunities to live near their work.
- Waiving certain fees for developments that incorporate work force housing.
- More funding for existing state work force housing initiatives, such as help with bad credit mortgages.
The association’s housing affordability index shows that recently the average cost for a typical starter home in Maryland was $260,000. Factors pushing up home prices include high demand, a strong economy and a restricted supply of houses, Kessler says.
That’s a problem for real estate agents, Kessler says, because “housing is a feeding chain. You start out at one level and you move up. Without an entry level, there is no feeding chain” - and no homebuyers for Realtors to serve.