RUSH: Maryland ranks in the top 10 for residents leaving for other states. This is Don Rush. The comptroller's office has issued a new report pointing to rising housing costs as one of the major factors. We talked with Comptroller Brooke Lierman, who suggested many regulations are driving up the price of housing and thus causing the state's loss of population.
LIERMAN: There are several different reasons. First is what we call the Smith Island Cake Effect of Regulations. All of these regulations were put in place for very good reasons, but the overall effect when you add one onto the other is that they have created a really challenging environment in which to build housing for folks. We also see deferred maintenance and vacant properties that reduce available housing stock. So nearly 40% of Maryland's housing was built before 1970, and a lot of it needs renovation and there just isn't money available to fix up these blighted homes. Even in Allegheny County, Somerset County and others where there's higher vacancy rates. We look at also permitting and other issues in Maryland compared to some of our other states.
RUSH: So one of the things that struck me about some of the issues that you talk about, for instance, parking requirements, public facility ordinances, even density limits, that it sounds as if the solution that you may be pointing to is some kind of deregulation.
LIERMAN: Yeah, I mean, I think we have to be really thoughtful about finding a balance between regulation and participation and the cost of housing. We know about 25% of the cost of housing is due to the regulatory environment, and I should add, every county has different regulations. And so if you are trying to build in different counties, you have to learn each different county's regulations. Sometimes they vary from municipality to municipality. And so we do need to think about rebalancing in Maryland so that we can ensure that folks can build housing that's affordable to teachers, to firefighters, to retirees, to young couples who want to move to Maryland and buy a starter home. That's become harder and harder for individuals and families in Maryland. And if we want to keep building as a state and ensure that we're bringing in folks and that folks can live here, we've got to make room.
RUSH: You're looking at something like for instance, that could be passed by the state legislature in terms of applying across the board as opposed to this sort of patchwork.
LIERMAN: We worked a lot with the Maryland Association of Counties and the Maryland Municipal League and talked to some state legislators as we were putting this report together. I really do think there needs to be a partnership between local governments and understanding what they need to make housing work and more strategic thinking around really being one Maryland in terms of some of these rules and regulations. And some of them were passed by the state and some of them were created at the local level, and so they need to be modified there. Permitting processes vary widely across counties, and the risk that exists really raises financing costs and discourages new projects sometimes, but it can also be expensive to upgrade or expand infrastructure like wastewaters, roads and schools. And so we need to be thoughtful about finding that balance between ensuring that we're making room for folks and that we're not discouraging housing.
RUSH: Now, are we also looking at, for instance, some kind of state money when it comes to rehabilitation of some of the housing? You mentioned Somerset County a moment ago.
LIERMAN: Yeah, I think that's absolutely something that needs to happen. We need to be really thoughtful about ensuring that we can rehab some of these older homes across the shore. There's this sort of naturally occurring affordable housing, but some of that housing stock is too old and outdated to be lived in. And so working with Department of Housing and Community Development to ensure that there's funds to upgrade some of that housing and repurpose it and make room for new families and new lives there is really important, certainly in Somerset and across the eastern shore.
RUSH: Maryland Comptroller, Brooke Lierman, and a new housing report that looks at some of the causes for many people leaving the state. This is Don Rush for Delmarva Public Media.
