Housing 2050

Thrive Montgomery 2050 will examine the state of housing in the county and what is possible to make housing affordable for all. Here is what we know so far:

  • Sluggish growth in housing market: Montgomery County had 390,600 housing units in 2016, 95,000 more units (32 percent increase) than in 1990. Multi-family housing developments with 10 or more units experienced the highest growth, increasing from 69,314 units in 1990 to 107,663 in 2016.
  • Renter population is growing: In 1990, only 32.1 percent of households (90,595) were renters. By 2016, this figure increased to 35.3 percent of households (131,791 renter households). This trend is reflective of the change in housing unit types with the growth in multifamily units.. Of the 91,000 households added between 1990 and 2016, 45 percent were renters. Demand for rental units strongly favors urban locations with strong public transit connectivity.
  • Homeownership is declining: Homeownership rates of all age groups, except for those age 65 and older, fell between 1990 and 2016, with the younger adult households (under age 35) hit the hardest with ownership rates plummeting from 46 percent to 28.4 percent. As infill development increases, this number is expected to decline even more. Regionally, Montgomery County’s homeownership is similar to Fairfax and Prince George’s Counties.
  • Home prices are on the rise: Average sale prices for both attached and detached homes in the county have remained strong and have increased significantly since the 1990s. In 2018, the average sale value of a detached single-family home was $705,676 and the average sale value of an attached single-family home (townhouse) was $346,863.
  • Market share of single-family homes is declining: While single-family attached and detached comprise the majority of the units within the county, the percent of total that single-family detached units comprise of total units has declined. Currently, single-family units detached units comprise 48 percent of the total units in the county, a decline from 51 percent in 2000.
  • Larger rental units in demand: Vacancy rates are lowest for 3-bedroom and 2-bedroom units. The 2013-2017 5-year average vacancy rate for 3-bedroom units is 5.7 percent, followed by 5.8 percent (2-bed), 6.5 percent (1-bed), and 7.2 percent (studio).

Tell us what you think and let us know what concerns and hopes you have for this important issue.

  • Please provide the zip code for where you live.
Last Updated: August 28, 2019