Why Annapolis refuses to treat the affordability crisis like the emergency it is.
By Michael Phillips | MDBayNews
Marylanders are living through the steepest affordability crisis the state has seen in two decades — and yet you’d barely know it listening to Annapolis.
Maryland now ranks among the top five most expensive states in the nation according to both the Missouri Economic Research and Information Center (MERIC) and the Council for Community and Economic Research (C2ER) — making it more expensive than Virginia or Pennsylvania and closing in on the priciest parts of California.
And here’s the number lawmakers avoid like the plague:
Since 2010, Maryland’s cost of living has risen roughly 42%, while median household income grew only 28% (BEA data).
The math is simple: costs are rising faster than paychecks.
Marylanders aren’t imagining this squeeze. They’re living it.
Maryland’s Prices Didn’t Rise by Accident — They Rose by Design
One policy choice at a time, Annapolis built a system where nearly every essential expense quietly inflates.
1. Property Taxes: The Hidden Inflation Engine
Maryland’s counties levy some of the highest effective property taxes in the region. Montgomery County’s median bill is nearing $6,000 a year — and every business renting space passes those costs along in prices.
Higher property taxes mean higher rent, higher groceries, higher childcare, higher everything.
2. Automatic Gas Tax Hikes
Maryland’s gas tax rises automatically every year unless lawmakers intervene — and they never do.
In 2024, the state collected $1.3 billion in motor-fuel tax revenue, more than the entire state budget for higher education. And yet leaders still refused to pause the automatic increase.
That same year, Annapolis awarded KPMG an $18 million contract that includes transportation funding analysis — while residents begged for relief at the pump.
3. Fees That Pretend They’re Not Taxes
BGE and Pepco rate adjustments approved by the Public Service Commission have pushed utility bills up 15–25% over the last few years.
The Maryland Environmental Service (MES) raised its Bay Restoration Fee again — in several counties with minimal public notice.
You can call these “fees” if you want.
Families experience them as taxes.
4. Housing: Zoning and Permitting Designed for High Prices
Maryland’s development pipeline is clogged by some of the slowest permitting timelines in the Mid-Atlantic. A 2023 audit found that in several counties, routine residential permits take 18–36 months.
Longer timelines = higher costs = higher home prices = higher rents.
No mystery. Just policy.
A Maryland Family the Legislature Pretends Not to See
Take Jessica Morales, a nurse in Waldorf who commutes to D.C.
- Her property taxes rose $810 last year.
- Her BGE bill is up 22% since 2022.
- Her car insurance renewal hit $3,400, with no accidents.
- Groceries for her two kids cost $150 more per month than a year ago.
She and her husband are now looking at houses in Stafford County, Virginia.
Jessica is not an outlier. She’s the new Maryland normal.
This Isn’t About Democrats or Republicans — It’s About a Political Class That Doesn’t Feel the Pain
Both parties share the blame:
- Democratic leadership pushed the 2019 Clean Energy Jobs Act, which accelerated renewable mandates and increased long-term electricity costs.
- Republican executives in Harford and Carroll raised property taxes in recent years.
- Governor Hogan (R) signed the automatic gas tax escalator into law.
- County councils across the map approve fee hikes, permit surcharges, and water/sewer increases.
Ideology didn’t create this crisis.
Insulation did.
Inside the State House bubble, higher taxes and fees are abstractions.
Outside, they are the difference between staying and leaving.
Who Benefits — With Real Names, Not Conspiracies
Marylanders hear about “investments.” They rarely hear about the invoices.
- KPMG: $18 million contract that includes transportation fiscal analysis.
- Maryland Environmental Service: Repeated Bay fee increases, limited transparency.
- Boston Consulting Group: Multi-million-dollar education consulting under Blueprint implementation.
- Ernst & Young: Multi-million-dollar procurement modernization review.
All public record.
All paid for by families who can’t afford to leave the grocery store without wincing.
One Simple Reform That Would Cut Costs Immediately
Here’s a fix almost every Marylander would support:
End automatic gas tax hikes. Require an annual vote.
No more inflation multipliers.
No more auto-pilot increases.
No more taxation without transparent justification.
This single change would:
- Save drivers $80–$120 a year,
- Force lawmakers to defend increases in public,
- Restore democratic accountability.
It’s practical. It’s popular. And it threatens the political comfort zone — which is exactly why it hasn’t happened.
Maryland Doesn’t Need Another Study — It Needs Courage
People like Jessica aren’t statistical noise.
They’re the backbone of the state.
Yet as families flee to Delaware, Pennsylvania, and Virginia for stability, Annapolis offers studies, commissions, and messaging — but not relief.
Relief isn’t radical. It’s just politically inconvenient — until the next election.
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