Montgomery County is facing a housing production crisis. Despite thousands of approved units waiting in the wings, only 54 multifamily housing permits have been issued in 2025 — a dramatic drop compared to previous years. This slowdown threatens the county’s ability to meet growing housing demand, especially for affordable and high-density options.
In response, county planners have presented a set of recommendations aimed at removing barriers and getting housing projects moving again:
- Streamlining the Regulatory Process
- Developers face a maze of reviews, fees, and delays. Planners propose expediting project reviews, improving interagency communication, and even creating a dedicated development approval specialist. These changes would make the process more predictable and efficient — a win for both developers and residents.
- Reforming Rent Stabilization
- The 2024 rent stabilization law has had a “chilling” effect on new multifamily development. Though planners recommend exempting all projects built after 2002 from the law, this may not be enough to restore confidence among developers and encourage new construction.
- Launching a Transparent Development Tracker
- The new “Development Tracker” replaces the outdated pipeline model and offers a clearer picture of project timelines and readiness. This tool will help residents understand what’s being built in their communities and when — fostering transparency and trust.
- Addressing Financial Barriers
- Developers cited high impact taxes, rising construction costs, and financing challenges as major obstacles. Planners are calling for a reassessment of these burdens to make projects more financially feasible.
Montgomery County has over 23,000 unbuilt multifamily units across 79 approved projects. That’s a massive opportunity to meet housing needs — but only if the county acts. Neighboring jurisdictions like Fairfax and Arlington are far outpacing Montgomery in permit issuance, showing that reform is not only necessary but urgent.
Read more about the proposal at Bethesda Today: MoCo planners recommend policy changes to boost multifamily housing production