Introduction

Maryland’s housing market is broken.

According to a new report by Comptroller Brooke Leirman, high housing costs are driving residents out of Maryland in droves to states like Florida (31%), Pennsylvania (26%), North Carolina (20%), and Texas (18%). 

To put this in real dollar terms, the Comptroller found that in 2022 roughly 138,000 people moved into Maryland– bringing with them $7.5B in new revenues. But, 164,000 people moved out of Maryland– taking $10.2B in revenues with them, resulting in a $2.7B net loss in revenue for the State.

“We were losing, on a net basis, older and higher-income people. Maybe they were retirees motivated by better weather or lower income taxes,” she said. “But since the pandemic, we’ve seen a troubling new trend … we’re seeing an increase of younger people and lower-income households leaving the state.” – Comptroller Leirman

This novel policy proposal is aimed at providing relief to older residents who are struggling to age in place in the communities to which they’ve devoted their lives, by creating a First Time Downsizer Program (FTDP) for longtime residents that wish to downsize out of their large single family homes and purchase a smaller property in Howard County.

It is important to note that the FTDP is a voluntary program for residents that wish to downsize for personal reasons. This program will have no impact on residents that wish to remain in their homes. Having the financial and physical means to age in place in Howard County is a luxury not all residents can afford in today’s economy. All seniors, at all income levels, deserve quality housing options in the neighborhoods and communities they helped to build– whether they are a retired executive, public servant, blue collar worker, or something in between.

II. Aging In Place

Roughly 27% of all Howard County homeowners are 65 years or older.

Howard County home ownership rates by age

And it is fair to assume that most of those residents wish to stay in their homes. In 2021, the AARP reported that 77% of adults over 50, if given the choice, would prefer to age in place. However, the question remains as to whether those specific properties– will remain both affordable and suitable for those homeowners.

About 63% of Howard County homeowners state that they are responsible for condo and homeowner fees dedicated to “maintaining common spaces and neighborhood upkeep.” Yet, the national average for this is only about 25%. And a 2020 report estimated that only 10% of American homes are “aging ready”, which would include “a step-free entryway, a bedroom, and at least one bathroom accessibility feature.” 

III. The Local Impact

District 2 is home to a generation of residents who spent their formative and professional years in Columbia’s oldest villages, Oakland Mills (1969) and Long Reach (1971), as well as many other older residents who have long since settled in Elkridge and Ellicott City.

Many of these homeowners are now retired and living off of a fixed income. And they are being squeezed by rising taxes, Columbia Association assessments, home maintenance costs, healthcare costs, grocery bills, energy costs, and much more. In addition to financial constraints, health and mobility challenges complicate aging in place even further.

The end result is more than 7,000 full-retirement aged (67+) District 2 residents who lack available– let alone affordable– housing options if they wish to downsize and remain in their community after they have retired from working and their children have moved out of the home.

As of this writing (October 2025) just seven properties are listed on Redfin.com for sale with an estimated average monthly payment of $2,000 or less (30-yr fixed with a 20% downpayment) in the 20145 zipcode.

As you can see above, none of the properties exceed 982 sq ft (condos) and all seven properties listed were built between 1973 and 1982.

Unsurprisingly, housing options improve considerably when searching for homes with a $4,000 monthly mortgage and a purchase price $500,000.

Older residents deserve home buying options at reasonable prices; in the communities they’ve built their lives in; that are safe and “aging ready.” My First Time Downsizer Program aims to create a market incentive for developers to build or renovate more properties for older adults– at prices they can afford.

III. How It Works

Federal, State, and Local governments have invested considerable taxpayer resources into supporting young adults’ ability to purchase a home. These First Time Homebuyer programs reduce or eliminate the downpayment burden faced by renters by offering downpayment assistance to those that otherwise would be unable to meet the cash requirements to qualify for a mortgage.

My First Time Downsizer Program acknowledges the challenges longtime residents face at the end of the housing cycle as opposed to the beginning. Seniors in today’s market face skyhigh construction costs; runaway housing prices; low inventory; and high interest rates. FTDP offers an off-ramp to seniors that desire to downsize into a more suitable property; remain in Howard County; and keep as much of their hard earned equity as possible.

$20,000 Property Tax Credit

Qualified longtime residents would be eligible for a $20,000 local property tax credit on their next primary residence so long as the property meets FTDP requirements and is located in Howard County.

Let’s put this in real terms.

Consider a senior resident in Howard County living in a home currently valued at the median purchase price of $550,000 and there is no mortgage on the home. That home would cost the homeowner roughly $6,160 in property taxes– or $513 per month. 

Now let’s assume this homeowner participated in FTDP by purchasing a fully renovated home outright for $400,000. Their annual tax bill would be $5,448 ($454 monthly), a modest 11% reduction in monthly living expenses. 

With the $20,000 FTDP credit, however, the homeowner’s monthly living expense would drop to just $106– an astonishing 79% decrease in housing costs for more than four years as the tax credit was drawn down after each annual assessment on the property. In this example, the credit would provide partial payment in year five and fully exhaust itself in year six.

In the above scenario, the FTDP participant pockets more than $100,000 in equity by selling their original home and downsizing into a newly renovated “aging ready” home; they’ve reduced their living expenses by ~80% for four years; and have increased their monthly budget by $400 over that same period. This represents a meaningful change in circumstances for a 75-year old resident on a fixed income.

Qualifications & Program Eligibility

Below is a broad outline of qualifications for FTDP. The campaign recognizes that nuanced public policy is best delivered through public input along with subject matter expertise:

• Must have maintained primary residence at one property in Howard County for at least 18 consecutive years

• Must downsize into a smaller home (measured by square footage); a waiver would be offered to otherwise eligible residents moving to a similarly sized property, so long as the new property is “aging ready” and the former property was not “aging ready”

• Properties listed at $1M or more (purchased or sold) are ineligible for the program

• The new property must be under contract within 12 months of sale of the former property

• The former property must be sold to a first time homebuyer; This important provision keeps businesses from buying up homes in residential neighborhoods

Purchasing Window

In addition to the above requirements, the FTDP will only offer the $20,000 tax credit to eligible buyers who purchase their homes within the program window– January 1 to June 30. 

The purchase window creates a number of favorable market conditions:

• Increased renovation activity by home sellers in Q4 in preparation for Q1 and Q2 listings during the program window

• Increased supply of newly renovated “aging ready” homes; developers will bring program eligible properties onto the market during the purchasing window

• A surge in single family home listings for first time homebuyers  during the traditionally slow winter months

• Larger inventory and lower prices for all homebuyers as a result of more buying and selling within the County
  

Creating a purchase window concentrates market activity; creates healthy competition; motivates sellers and buyers to close deals; and incentivizes developers to deliver in-demand senior housing units.

IV. The Numbers

Howard County sells ~3,440 homes per year. If the County encouraged a 10% increase in home sales via a $20,000 credit, the County would forgo approximately $6.8M ($20K x 344 sales/participants) in tax revenue over the lifetime of each FTDP cohort.

It is worth noting that $6.8M would be the maximum exposure. The buying window would be hard capped at the first 344 participants to satisfy all program requirements. And each $20,000 credit could only be drawn down so long as the participant remains in their downsized property as a primary resident. This means that if a participant moved into a new care facility; moved in with their adult children; or were transferred to hospice the remaining balance of their credit would be reverted back to the County and their local property tax assessments would be collected in full.

What is the Taxpayer ROI on offering Tax Credits to Seniors?

Helping Howard County seniors struggling to age in place is objectively the right thing to do. But it is also important to note that FTDP offers real financial benefits to all Howard County taxpayers at a time when local revenue growth has slowed to a crawl.

To better understand taxpayer ROI on FTDP, one must examine the amount of property tax revenue left on the table when the real estate market cools.

Even as home prices in the area continue to rise, the County does not capture the full value of appreciating home prices on an annual basis. As you know, property taxes are capped at a 5% year-over-year increase– meaning that if the median sale price of all homes sold in Howard County rose by 6.7%, the County would only receive 5% of that assessed value. That 1.7% gap equates to about $9,435 in uncaptured revenue for a home valued at the 2023 median sale price of $555,000. New homeowners pay the full assessed “uncapped” value (the purchase price of their home) at their first tax year assessment. The homeowner is then subject to no more than a 5% increase in taxes year-over-year.

So how much more revenue would Howard County have collected if 10% more homes were sold at the median home price, rather than held at the 5% capped assessment? 

Using 2023 housing data and median sale price of $555,000 at a home price increase of 6.7%: County revenues would have increased by $30,000 annually and County coffers would have collected a one-time payment of $3.27M in transfer and recordation taxes.

The shaded area indicates uncaptured property tax revenue above the 5% property tax cap

In addition to the $3.27M in one-time transaction taxes, one can loosely estimate $2-$6M in additional economic activity generated by new homeowners in the first year including:

• Purchased goods, and home repairs

• Increased permitting revenue

• And an increase in contractor jobs and wages
  

These ancillary revenues more than pay for the tax credits offered to FTDP participants, and essentially represent “cash in hand” in terms of revenues collected– versus the County’s commitment to credit $20,000 in incremental local tax assessments so long as the FTDP remains eligible. The County could limit its long-term exposures by offering FTDP biennially instead of annually; reducing the number of program slots available; or reducing the credit amount to better reflect its long-term budgeting restraints.

V. Conclusion

The First Time Downsizer Program is a common-sense approach to a growing problem. Many longtime Howard County residents want to stay in the community they helped build, but can no longer afford or physically manage the homes they’ve lived in for decades. This program recognizes that not all of our residents retired to significant wealth. Residents living on a fixed income deserve quality housing options at reasonable prices in the communities they know and love. By offering a limited, targeted property-tax credit, the County can help those residents downsize into smaller, “aging ready” homes; provide a substantial decrease in monthly housing expenses; and keep our lifelong residents from leaving Howard County altogether.

This proposal is not about creating a new entitlement— this is a market based solution that seeks to reclaim the lost value that already exists within Howard County’s faltering housing ecosystem and put it to better use.

We have the opportunity to offer $20,000 in local property tax credits to older residents that need it most by simply encouraging more homebuying and selling. We know that when older properties are sold, home updates typically follow. That creates new renovation work; new business for local contractors; and new revenue for the County through recordation and transfer taxes. A modest 10% increase in home sales alone could generate millions of dollars in economic activity and one-time revenues that more than offset the cost of the program.

At its core, FTDP is about giving people choices. It gives seniors the freedom to stay in Howard County; the next generation a fair shot at homeownership; and the County a new tool to grow its economy without raising taxes. It’s a practical solution to a real problem—and one that reflects the values of a District 2 County Council campaign focused on increasing affordability and economic opportunity for Howard County residents.