Dive Brief:
- An upzoning proposal in Rockville, Maryland, that would allow townhomes, duplexes, triplexes and cottage homes to be built by right without requiring discretionary approval would increase the city’s housing supply without hurting existing home prices or surrounding property values, according to a local Realtors’ association study.
- The new zoning would lead to a net increase of 21 housing units over the next decade, a modest 4.5% increase in the city’s housing stock, says the study by real estate consulting firm HR&A Advisors, which was commissioned by the Greater Capital Area Association of Realtors. It would also expand homeownership opportunities to an additional 28% of residents, the study says.
- The proposal comes as the city is updating its nearly 20-year-old zoning ordinance to align it with its 2040 comprehensive plan.
Dive Insight:
As cities and counties look to address the housing affordability crisis, some are turning to “missing middle” housing such as townhomes, duplexes and triplexes or small multifamily homes. Construction of those housing types is often blocked by restrictive zoning ordinances that favor single-family homes or larger apartment buildings.
A 2016 analysis found that 10,000 Rockville households were cost burdened, with 53% of renters and 29% of homeowners spending 30% or more of their income on housing . The city needs to add 10,000 housing units by 2040 to meet future demand, according to the 2016 report.
Rockville staff members last year asked GCAAR for its input on the potential changes to its zoning ordinance. The study found the new zoning would potentially lead to 55 single-family home conversions into multifamily dwellings.
The median single-family home value in Rockville is $1.05 million, according to the study. Condos resulting from the zoning change would have a projected median value of $570,000, which would lead to increased homeownership opportunities in the city, it said.
“The difference in pricing between existing single-family homes and projected multiplex development reflects the affordability benefit of missing middle housing in Rockville's market,” the study says.
GCAAR President Russell Brazil said in a statement that its members’ clients “are increasingly priced out of the county,” adding that the group will “remain unwavering in our commitment to advocate for the development of more attainable housing in our region.”
