Report: Montgomery Grows More Diverse, Income Stays Flat and Housing Lags

Planning Board analysis sets stage for debate on county’s long-range development strategy

January 24, 2019 1:36 p.m.

A new analysis that documents the changing face of Montgomery County has found residential development trails the rest of the region, the median household income has remained flat and fewer federal employees live in Maryland’s largest county.

The snapshot of demographics and behavior trends over the past quarter-century, prepared by county Planning Department researchers and released Thursday morning, shows Montgomery County is becoming more diverse, with minorities in the majority.

The report, “Montgomery County Trends: A Look at People, Housing, and Jobs since 1990,” will be used to help planners guide development and zoning decisions as the department updates its general plan, a document first adopted in 1964 that sets the framework for land use in Montgomery County.

Among the findings:

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  • Montgomery County’s population is now minority-dominated, with more than 56 percent of residents being people of color, compared to 28 percent in 1990. Data also shows one-third of county residents are foreign-born, up about 15 percent in the same timeframe. The average household size has increased slightly, from 2.65 people to 2.77 people, driven in-part by “large immigrant households.”
  • When adjusted for inflation, the county’s median household income of just under $100,000 has not changed since 1989.
  • The percentage of residents who work for the federal government declined from 15 percent to 13 percent, while the percentage of residents who work in the county increased from 58 percent in 1990 to 62 percent in 2016.
  • Residential development in Montgomery has lagged behind the rest of the region. The number of housing units has increased by 32 percent, but regional growth advanced a 50 percent clip.
  • About three-fifths of county workers also live in the county, up slightly from 1990, with 65 percent driving to work in a personal vehicle. Carpooling decreased from 13 percent to 9 percent while about 6 percent of people walk, use public transportation or bike to work.

The County Council recently adopted a master plan approved by the Planning Board in November that aims to create a network of more than 1,000 miles of bike lanes. One of the goals of the plan is to increase preference of bicycling and walking over driving to various areas of the county.

While the number of renters grew by about 3 percent to 35 percent of residents, home ownership among people 35 or younger dropped 17 percent between 1990 and 2016.

Caroline McCarthy, chief of research for the planning department’s Research and Special Projects Division, said homeownership data aligns with national trends as millennials — typically described as people born between 1980 and 2000 — wait longer to start families and wrestle with high student debt. The data could prompt county officials to consider if there’s a lack of “starter homes” for younger people, McCarthy said.

County budget director Rich Madaleno said he thought the county’s millennial population was still suffering aftershocks of the 2008 global recession.

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“As a cohort, that age group has more student debt than any other cohort before it. And obviously that cohort becomes a drag when it comes to the ability to have the income to buy a home. I think younger people are looking at buying a home and putting that off as they make other decisions,” he said.

Madaleno also noted that County Executive Marc Elrich has committed to implementing a racial equity policy in the budget process going forward, but the budget director said the details hadn’t been fleshed out.

The Planning Board analysis was released on the heels of a report from a business advocacy group, Empower Montgomery, that warned neighboring jurisdictions in Northern Virginia and Washington have stronger economic activity than Montgomery, at one time the state’s wealthiest county.

Empower Montgomery said taxes that are greater than nearby counties, “an elaborate regulatory apparatus, and a county monopoly on liquor distribution have helped contribute to a business climate generally viewed as unfavorable.”

“The solution lies in attracting more job-creating private investment and expanding the county’s commercial tax base – one that is far smaller in relative terms than in many other Washington-area communities,” the pro-business group said in its Tuesday report.
Madaleno said that although he didn’t agree with everything in the report, some recommendations had merit.

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“I think there are some good points about schools, and the elected officials here have been advocating for several years to step up and increase funding for school construction so that we can quickly knock out some projects that are potentially putting projects in moratorium,” he said.

Caitlynn Peetz can be reached at caitlynn.peetz@moco360.media

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