Capital Region Falling Behind on Housing Production as Demand Grows

New HIT data reveals declining permits, slowing production, and mounting pressure on regional affordability

WASHINGTON, May 13, 2026 /PRNewswire/ -- Housing& today released the Housing Indicator Tool (HIT) 6.0, a comprehensive regional analysis tracking housing production, preservation, and policy trends across the Greater DC, Baltimore, and Richmond regions. The findings show the Capital Region is struggling to keep pace with housing demand as construction slows, permits decline, and key affordability reforms remain limited. While the region has added more than 180,000 housing units since 2019—including nearly 26,000 committed affordable homes—the pace of production is slowing at a time when housing affordability continues to worsen for many residents.

Key Findings from HIT 6.0

• Housing production slowed across the region in 2025. Greater DC added 23,614 housing units in 2025, falling short of its annual target of 25,013 units. Greater Baltimore added 5,974 units, down from 6,980 units in 2024.
• Affordable housing production increased modestly, but demand continues to outpace supply. Greater DC produced 4,736 committed affordable homes in 2025, while Greater Baltimore added 898 affordable units.
• Building permits continue to decline sharply, signaling future supply challenges. In Greater DC, permits have fallen every year since peaking at 25,899 units in 2021, dropping to just 13,589 in 2025. Greater Baltimore jurisdictions saw permits decline from 6,400 in 2024 to 3,263 in 2025.
• Adoption of cost-reducing zoning reforms remains limited. Only two jurisdictions surveyed have implemented policies such as eliminating parking minimums or adopting single-stair reform.

"These findings make clear that the region cannot grow economically without addressing housing affordability at scale," said Courtney Battle. "Meeting this moment will require stronger alignment across policymakers, developers, lenders, employers, philanthropy, and community leaders to accelerate both housing production and preservation."

Housing Affordability Remains an Equity Challenge
HIT 6.0 underscores the lasting impact of discriminatory housing policies and practices—including redlining and exclusionary zoning—which continue to shape disparities in wealth, health, housing access, and economic opportunity across the region. Rising housing costs and insufficient supply continue to disproportionately burden households with low and moderate incomes and communities of color. The tool places equity at the center of the analysis, equipping policymakers, developers, employers, advocates, and institutional leaders with data to better understand disparities, track progress, and advance more inclusive housing outcomes.

A Tool Designed to Drive Action
The Housing Indicator Tool combines data from more than 20 jurisdictions and includes:

• Regional and jurisdictional housing dashboards
• Policy tracking on zoning and housing production strategies
• State-level insights for Maryland and Virginia
• Affordability metrics by income level

A distinguishing feature of the HIT is its ability to break down housing needs by income band, helping policymakers and practitioners better understand the depth of affordability required across local markets. "The data is clear: we are not building enough housing to meet demand," said Battle. "But we also know the solutions. The challenge now is whether we are willing to align policy, capital, and political will at the scale this moment requires."

Explore the HIT full analysis, interactive dashboards, and regional Calls to Action at: Housing Indicator Tool 6.0

About Housing&
Housing& is a regional membership collaborative working to advance equitable housing outcomes across the Capital Region. Through research, advocacy, and cross-sector collaboration, Housing& advances solutions that expand housing supply, preserve affordability, and strengthen communities.

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SOURCE Housing&