THIS PROGRAM IS MADE BY MPT TO ENRICH THE DIVERSE COMMUNITIES THROUGHOUT OUR STATE AND IS MADE POSSIBLE BY THE GENEROUS SUPPORT OF OUR MEMBERS.

THANK YOU.

>> Jeff: TONIGHT A "STATE CIRCLE" SPECIAL.

MARYLANDERS ON THE EDGE.

>> I FEEL THE STRUGGLE EVERY SINGLE DAY.

I BARELY SEE MY KIDS DURING THE WEEK.

>> Jeff: A HOT ECONOMY NOT TRICKLING DOWN.

>> WE HAVE SEEN 62% GOOGLE HITS FOR FINDING FOOD.

>> WE ARE IN A HOUSING CRISIS.

>> I HAVE TRYING TO BECOME A HOMEOWNER FOR THE LAST 20 PLUS YEARS.

>> WE NEED MORE SUBSIDIZED HOUSING AND MARKET RATE HOUSING.

>> Jeff: WELCOME TO A SPECIAL EDITION OF "STATE CIRCLE".

TONIGHT AN INSIDE LOOK AT THE FINANCIAL CHALLENGES FACING MANY IN OUR COMMUNITIES.

NOW, IF YOU JUST LOOK AT THE NUMBERS, THE ECONOMY LOOKS PRETTY GOOD.

INFLATION HAS COME DOWN.

AND MARYLAND'S UNEMPLOYMENT RATE IS AS LOW AS IT'S EVER BEEN.

BUT IF YOU LOOK AT THIS LINE OF CARS ON THE ROAD IN BALTIMORE COUNTY ON A MONDAY NIGHT, YOU SEE A DIFFERENT STORY.

PEOPLE WAITING AN HOUR OR MORE FOR WEEKLY FOOD PANTRY, OPERATED BY THE COMMUNITY CRISIS CENTER TO OPEN.

>> I REALLY THINK A LOT OF IT IS JUST PEOPLE STILL TRYING TO RECOVER FROM THE EFFECTS OF THE PANDEMIC.

AND THEN ON TOP OF THAT, RECOVERY, WE HAVE INFLATION AND HIGHER FOOD COSTS.

>> Jeff: FOOD BANKS ARE ONE EDUCATION HOW MUCH PEOPLE ARE STRUGGLING TO MAKE ENDS MEET.

NANCY AMATTA SHOWS US WHAT SOME PEOPLE ARE DOING TO SURVIVE.

>> I FEEL THE STRUGGLE EVERY SINGLE DAY.

EVERY SINGLE DAY, I FEEL IT.

I GET UP VERY EARLY TO START MY MORNING.

>> THE ALARM DEPOSE OFF AT 5:00 A.M.

SO WANDA, A WIDOW AND MOTHER OF FOUR CAN PROVIDE FOR THEIR FAMILY.

>> I BARELY SEE MY KIDS DURING THE WEEK.

I DON'T QUALIFY FOR MOST THINGS.

SO, YOU KNOW, ASSISTANCE OR ANYTHING LIKE THAT, IS OUT OF THE QUESTION.

>> SHE IS AMONG THE MARYLANDERS WHO ARE MAKING TOO MUCH TO QUALIFY FOR SNAP BENEFITS, BUT BARELY ENOUGH TO GET BY.

>> EVER SINCE COVID IT'S FELT REALLY BAD.

INFLATION HAS TAKE ESPECIALLY A TOLL ON EVERYBODY'S HOME THAT I KNOW.

FOOD IS ASTRONOMICAL AND THE DIFFERENCE IN PRICE BY DOLLARS.

>> AND THE RENT COSTS THAT CONTINUE TO CLIMB ALONG WITH THE UTILITIES.

LAST YEAR, WAS ABOUT $179.

JUST MONTHS LATER, STARTING LIKE IN APRIL, THAT BILL TRIPLED.

AND WHEN I CALLED TO ASK WHAT WAS GOING ON, THEY SAID THAT THE GAS PRICE HAD GONE UP.

>> HOW DO YOU ABSORB THAT?

>> UNFORTUNATELY HAVING TO WORK MORE.

>> AND CUT OUT EATING OUT.

SHE GROWS FOOD AND COOKS AT HOME.

>> I TRY NOT TO GO TO TOO MANY PLACES DURING THE WEEK.

BECAUSE I DON'T WANT TO WASTE MY GAS.

I DON'T FILL UP THE GAS TANK ANYMORE.

YOU KNOW, NOW FILL IT UP.

I HAVE TO DO $25 AND $WOULD IT 5 AT A TIME.

>> WHEN A BILL POPS OR WHERE SHE HAS TROUBLE MAKING ENDS MEET SHE HEADS TO THE HOWARD COUNTY FOOD BANKS ALONG WITH FAMILIES STRUGGLING TO SURVIVE.

>> LAST YEAR, IT WOULD BE NORMAL TO SEE 80-100 INDIVIDUALS, HOUSEHOLDS A WEEK.

WE'RE SEEING THAT PER DAY.

>> TRACEY IS THE PRESIDENT OF THE COMMUNITY ACTION COUNCIL OF HOWARD COUNTY A NONPROFIT THAT RUNS THE FOOD BANK AND PROVIDES HOUSING AND ENERGY ASSISTANCE WITH OPPORTUNITIES FOR YOUNG KIDS TO GO TO PRESCHOOL.

>> SURPRISINGLY MOST OF THE FOLKS WHO ACCESS THE SERVICES ARE EMPLOYED AND HAVE SOME LEVEL OF CREDITING EDUCATION.

IT'S IMPORTAN TO NOTE ONE OF THE THINGS THAT IS PERPETUATING SOME OF THESE ISSUES WITH FAMILIES WHO NEED ASSISTANCE, IS THE USE OF THE FEDERAL POVERTY GUIDELINES THEY ARE ARCANE.

A FAMILY OF FOUR CANNOT MAKE MORE THAN $30,000 A YEAR TO RECEIVE ASSISTANCE.

>> ACCORDING TO THE STATE SELF SUFFICIENCY STANDARD A FAMILY NEEDS TO EARN $136,000 A YEAR IN ORDER TO MEET BASIC NEEDS WITHOUT ASSISTANCE.

>> HERE IS THE DEAL...

IF WE DON'T MAKE SYSTEMIC CHANGE THIS WILL BE A PROBLEM THAT PERSISTS.

THE GRANTS TO KEEP PEOPLE IN THEIR HOMES ARE NOT GOING TO INCREASE.

WE'VE GOT TO ADDRESS THIS UPSTREAM AND WE'VE GOT TO BE ABLE TO ASSIST FAMILIES IN EARNING HIGHER WAGES, ACCESS TO EDUCATION, AND REDUCING THE COST OF HOUSING CONTROLLING HOW MUCH RENT CAN BE RAISED.

>> UNTIL THEN THE FOOD BANK AND THE VOLUNTEERS WHO RUN IT ARE PUTTING FOOD ON THE TABLE FOR THOSE WHO ARE HUNGRY FOR A BETTER LIFE.

>> UNLESS YOU HAVE A COLLEGE DEGREE AND OR SOMEONE HELPING YOU, IT'S OR YOU ARE SKILLED THE AA SPECIFIC TRADE I AM AN HVAC TECHNICIAN BUT I CAN'T WORK BECAUSE OF MY RECORD.

>> HARD TIMES FOR PEOPLE TRYING TO GET AHEAD.

>> IT'S HARD TO LIVE A GOOD LIFE IN THIS COUNTRY AND IT'S GOING TO GET WORSE.

I'M NOT SURE IF THIS IS GOING TO GET ANY BETTER.

YOU HAVE TO SIT DOWN AND REALLY SHAVE OR TAKE AWAY OR PUT BACK AND DO THINGS OF THAT SORT.

REALLY, IN MY WORLD, RIGHT NOW, THERE IS NO TIME FOR ME TO BREAKDOWN.

IF I BREAKDOWN THAT MEANS THAT THAT'S GOING TO HURT ME AND MY CHILDREN.

>> I'M NANCY AMATTA FOR "STATE CIRCLE".

>> Jeff: THANK YOU.

JOINING US NOW IS CARMEN DEL GUERCIO THE C.E.O.

OF THE MARYLAND FOOD BANK.

SIR, THANK YOU FOR JOINING US.

IF YOU WOULD GIVE US AN OVERVIEW OF HOW YOUR OPERATION WORKS.

>> YEAH, SO WE ARE THE FOOD ASSISTANCE HUB FOR THE STATE OF MARYLAND.

WE PARTNER WITH 330 COMMUNITY-BASED ORGANIZATIONS IN NEIGHBORHOODS AND COMMUNITIES ACROSS OUR STATE TO DISTRIBUTE THAT WE GET THROUGH PURCHASING AS WELL AS DONATED STREAMS AND DELIVER TO THE ORGANIZATIONS FOR THEM TO DELIVER IT TO THE LOCAL NEIGHBORS NEIGHBORS IN NEED.

>> >> Jeff: WHAT DOES FOOD INSECURITY LOOK LIKE IN MARYLAND RIGHT NOW?

>> WE HAD A BIG SPIKE UP DURING THE PANDEMIC.

A LITTLE BIT OF EASING OF THAT COMING OFF THE PANDEMIC.

AND THE INFLATION CREATED A BIG PROBLEM.

WE ARE SEEING HEIGHTENED DEMANDS FOR THE LAST YEAR OR SO.

AND INFLATION IS IN SOME OF THAT.

THE LACK OF GOVERNMENT SUPPORT IS PART OF THAT.

WE ARE SEEING DEMAND NOT AT PANDEMIC LEVELS BUT CLOSE.

>> Jeff: LET'S DIG INTO THE INFLATION PART.

YOUR END USERS ARE HURT BY THAT, ARE YOUR OPERATION AS EFFECTED BY IT AS WELL?

>> ABSOLUTELY.

IT HITS US ON THE DEMAND SIDE AND IT CAUSES US TO BUY MORE FOOD.

WE BOUGHT $6 MILLION AND NOW WE BUY 20.

YOU GET A SENSE OF THAT GAP.

THE DONATED FOOD STREAMS, THE SUPERMARKETS ARE NOT HOARDING IF THEY HAVE IT AVAILABLE THEY ARE GIVE TO GO TO US.

WE ARE TO BACKFILL WITH PRICING INFLATION IS AFFECTING OUR PURCHASING POWER.

>> Jeff: ON THE SUBJECT OF GOVERNMENT SUPPORT, HAVE WITH INFLATION?

I GUESS I'M ASKING IF THINGS ARE INDEXED TO THE SAME NUMBERS THAT THEY USED TO BE?

>> NO.

THOSE FOLKS ARE GETTING GOVERNMENT SUPPORTS IF YOU THINK ABOUT YOU HEARD AS MUCH AS 25% INCREASE IN FOOD PRICES, SO THEIR BENEFITS ARE NOT GOING AS FAR AS THEY USED TO.

AND PUTTING MORE PRESSURE ON OUR FOOD DISTRIBUTION NETWORK.

>> Jeff: WHAT IS HAPPENING OVERALL WITH THE DONATIONS THAT YOU RELY ON?

>> FOOD DONATIONS CONTINUE TO COME IN STEADILY.

WE ARE WORKING WITH OUR FOOD DONATION PARTNERS ANY RETAILER YOU CAN THINK OF WHOLESALERS AS WELL TO ENSURE WE'RE MAXIMIZING THAT STREAM.

AND WE'RE FORTUNATE TO HAVE A STEADY FLOW OF FINANCIAL SUPPORT.

WE'RE SEEING SOME SOFTNESS, THE ECONOMY IS AFFECTING PEOPLE AS WELL.

FOOD INSECURITY WAS ELEVATED DURING THE PANDEMIC AS THAT IMAGES OF LONG LINES WERE PROJECTED IN PEOPLE'S LIVING ROOMS.

WE BROUGHT MORE AND MORE DONORS WHO GET AN APPRECIATION FOR THE WORK WE'RE DOING.

>> Jeff: AND IF PEOPLE WANT TO FIND A WAY TO HELP OUT, IT IS A GREAT TIME OF YEAR FOR PEOPLE TO THINK ABOUT HOW TO BENEFIT THEIR COMMUNITIES.

WHAT KINDS OF SUPPORT ARE YOU LOOKING FOR?

>> FINANCIAL SUPPORT AS WELL AS YOUR TIME.

FINANCIAL SUPPORT OUR BUYING POWER WE BUY $20 MILLION WORTH OF FOOD IT GIVES US BUYING POWER.

FOLKS WHO GIVE US A DOLLAR WE CAN STRETCH THAT FURTHER THAN YOU ARE ABLE TO DO.

FINANCIAL SUPPORT IS CRITICAL.

AND OUR MISSION RELIES ON VOLUNTEERISM.

WE HAVE 35,000 HOURS OF VOLUNTEERS IN OUR FACILITIES ACROSS THE STATE.

IF PEOPLE WANT TO GIVE BACK THEIR TIME WE CAN ACCOMMODATE THAT, TOO.

>> Jeff: I SAW SOMETHING ON YOUR WEBSITE ABOUT A VIRTUAL FOOD-DRIVE IS THE IDEA TO LEVERAGE THE IDEA MAYBE YOU CAN USE A DOLLAR MORE THAN I CAN SPEND IT AT THE LOCAL GROCERY STORE AND BRING YOU THE CANNED FOOD ITEM?

>> 100%.

IT IS A FUNCTION OF OUR ABILITY TO UNDERSTAND WHAT OUR COMMUNITIES WANT AND NEED.

THAT TAKES THE GUESSWORK TO SAY WELL MAYBE I'LL BUY THIS WE KNOW WHAT MOVES AND WHERE THE DEMAND IS IT ALLOWS US TO PROVIDE THE FOOD PEOPLE WANT AND INCREASING OUR FOCUS ON NUTRITIONAL CONTENT OF THE FOOD WE DISTRIBUTE AS WELL.

THE VIRTUAL FOOD-DRIVES TO HAVE A SENSE OF WHERE THEIR MONEY IS GOING.

AND ALLOW US TO USE OUR BUYING POWER TO THE FULLEST.

>> Jeff: YOUR TEAM IS WORKING VERY HARD ON THE SHORT-TERM PROBLEM PUTTING MEALS ON TABLES FOR PEOPLE.

BUT I KNOW YOU'RE PASSIONATE ABOUT THE LONG-TERM CAUSES OF FOOD INSECURITY AND HOW WE CAN GET AT THE ROOT CAUSES.

>> THANKS FOR RAISING THAT.

WE'VE BEEN AROUND FOR 40 @OF MILLIONS OF POUNDS OF FOODNS EVERY YEAR.

AND IT CONTINUES TO BE A PROBLEM.

AS AN ORGANIZATION WE ARE FOCUSED ON WAYS WE CAN BEGIN ADDRESS ROOT CAUSES THROUGH OUR OWN OPERATIONS, THROUGH THINGS LIKE ADVOCACY FOR LEGISLATIVE SUPPORTS LIKE CULINARY TRAINING PROGRAMS.

WE HAVE ONE HERE AND ONE IN SALISBURY TRAINING PEOPLE IN THE CULINARY FIELD.

AND PARTNERING WITH OTHER WORKFORCE ORGANIZATIONS.

ANOTHER AVENUE WE'RE TAKING WHERE WE PROVIDE FOOD ASSISTANCE TO THEIR PARTICIPANTS AND THEIR PROGRAMS IN HOPES OF ATTRACTING MORE CANDIDATES AND RETAINING THE CANDIDATES.

WE'RE TRYING IN MULTIPLE WAYS TO GET PEOPLE TO ENTER THE WORKFORCE WITH JOBS THAT ARE FAMILY-SUSTAINING.

>> Jeff: IF THERE'S SOMEBODY WATCHING US RIGHT NOW WHO NEEDS HELP WITH FOOD MAYBE THEY KNOW SOMEONE WHO NEEDS HELP, WHAT SHOULD THEY DO?

>> THEY CAN COME TO OUR WEBSITE.

WE HAVE A FIND FOOD PAGE AND THAT GIVES THEM A SENSE BASED ON THEIR ADDRESS THEIR ZIP CODE THEY WILL BE FINDING PARTNERS TO SEE WHEN THEY ARE OPEN AND AVAILABLE FOR FOOD ACCESS.

WE'RE SEEING JUST A HIT ON THAT, A 62% INCREASE IN THE AMOUNT OF HITS TO GOOGLE HITS FOR FINDING FOOD.

FOR US THAT IS A LEADING INDICATOR, JEFF, FOR THINGS.

IF YOU ARE SEARCHING TO FIND FOOD IT MEANS YOU ARE NOT WORKING WITH OUR FOOD ASSISTANCE PROGRAM RIGHT NOW BUT YOU ARE LOOKING FOR THAT GOING FORWARD.

THAT IS A DISTURBING INDICATOR OF THE FACT PEOPLE ARE TRYING TO FIGURE OUT HOW TO PROVIDE FOR THEIR FAMILIES.

>> Jeff: ABSOLUTELY.

CARMEN DEL GUERCIO JOINING US FROM THE MARYLAND FOOD BANK.

WE APPRECIATE YOUR TIME.

>> THANK YOU VERY MUCH.

APPRECIATE IT.

>> Jeff: HOUSING COSTS AND OTHER BIG FACTORS SQUEEZING CONSUMERS.

SUE COPPIN HAS THAT STORY.

>> I HAVE BEEN TRYING TO BECOME A HOMEOWNER IN ANNE ARUNDEL FOR THE LAST 20 PLUS YEARS.

>> BONNIE HENDERSON IS A NATIVE OF ANNE ARUNDEL COUNTY.

SHE WORKED FOR THE STATE FOR 30 YEARS AND RETIRED AND WENT ON TO WORK FOR THE COUNTY FOR 10 YEARS.

TOOK A SECOND JOB TRYING TO FULFILL HER DREAM OF BECOMING A HOMEOWNER.

>> I STILL HAVE NOT BEEN ABLE TO BUY A HOUSE.

AFTER I GET GOT MY CREDIT STRAIGHT, NO BILLS AND EVERYTHING, SAVED MY MONEY.

SO THEN I WAS PREAPPROVED AGAIN FOR $200,000.

STILL COULDN'T FIND A HOUSE.

I'M NOT NOT ABLE TO FIND A HOUSE.

>> THE COUNTY COUNCIL IS CONSIDERING AFFORDABLE HOUSING LEGISLATION PROPOSED BY THE COUNTY EXECUTIVE INTENDED TO MAKE HOUSING MORE AFFORDABLE AND AVAILABLE FOR POTENTIAL HOMEOWNERS AND RENTERS.

>> RIGHT NOW 45% OF THE RENTEDDERS ARE COST BURDENED.

THAT MEANS THEY ARE PAYING MORE THAN 30% OF THEIR INCOME FOR RENT.

RIGHT NOW, 19% OF THE RENTERS IN THIS COUNTY ARE PAYING 50% OR MORE OF THEIR INCOME FOR RENT.

THAT IS TOTALLY NOT SUSTAINABLE IN A WORLD IN WHICH YOU HAVE FAMILIES AND FOOD AND GROCERIES AND HOUSING AND EVERYTHING ELSE YOU HAVE TO PAY FOR.

>> MATT IS THE CHAIR OF GROWTH ACTION NETWORK A COALITION THAT INCLUDES INDIVIDUALS, COMMUNITY AND CIVIC GROUPS.

HE SAYS THERE IS A GREAT NEED FOR HELP WHEN IT COMES TO AFFORDABLE HOUSING.

>> RIGHT NOW WE HAVE 31,000 PEOPLE ON THE WAITING LIST FOR SUBSIDIZED HOUSING.

IF THAT IS FAMILIES OF THREE YOU ARE TALKING ABOUT ALMOST 100,000 PEOPLE.

AND WE HAVE 600,000 PEOPLE IN THE COUNTY RIGHT NOW.

THAT IS A BIG PERCENTAGE.

THIS BILL WOULD ALLOW PEOPLE MAKING THE AREA MEDIAN INCOME FOR THE BALTIMORE AREA TO AFFORD TO BUY A HOUSE FOR ABOUT $300,000 OR RENT A HOUSE FOR ABOUT $2,000 A MONTH.

>> MARYLAND'S SECRETARY HOUSING AND COMMUNITY DEVELOPMENT JAKE DAYISM WE ARE ABSOLUTELY IN A HOUSING CRISIS.

AND AROUND MARYLAND AND EVERY PART OF THE STATE.

THERE ARE FAMILIES TONIGHT HAVING CONVERSATIONS AT THE DINNER TABLE ABOUT NOT BEING ABLE TO AFFORD RENT.

ABOUT PREDATORY PRACTICES AND UNLOVABLE CONDITIONS THAT THEY ARE IN AND SUBJECTED TO BECAUSE THEY HAVE NOWHERE ELSE TO GO.

ABOUT NOT BEING ABLE TO AFFORD THE MORTGAGE PAYMENT AND FACING FORECLOSE.

>> HE PEGS THE SHORTAGE OF HOUSING ON TWO BARRIERS.

>> THEY ARE COST.

RAPIDLY RISING SUPPLY COSTS, SUPPLY CHAIN ISSUES LABOR COSTS, INTEREST RATES, THE COST OF MONEY THE COST OF REAL ESTATE ALL THOSE ARE THROUGH THE ROOF.

AND LOCAL BARRIERS TO REAL ESTATE DEVELOPMENT.

THE REGULATORY PROCESS AND PERMITTING PROCESS AT BOTH THE STATE AND THE COUNTY AND MUNICIPAL LEVEL.

>> LAURIE GRAPH IS C.E.O.

OF THE MARYLAND BUILDING INDUSTRY ASSOCIATION.

>> WE NEED MORE AFFORDABLE HOUSING, SUBSIDIZED HOUSE ANDING MORE MARKET RATE HOUSING SO PEOPLE CAN'T GET SUBSIDIZED HOUSING CAN AFFORD IT.

AND WHAT IS DRIVING THAT IS SUPPLY.

WE HAVE NO SUPPLY IN MARYLAND.

SO THERE'S NO RESALES.

THERE'S NO NEW CONSTRUCTION.

SO OR VERY LITTLE OF IT.

SO THAT IS JUST SUPPLY AND DEMAND ECONOMICS YOU HAVE NO SUPPLY, THE PRICES JUST SKYROCKET.

SO WE NEED TO FIGURE OUT A WAY AS A STATE TO PROVIDE MORE SUPPLY.

BOTH ON THE AFFORDABLE SIDE AND THE MARKET RATE SIDE.

>> THE SECRETARY DAY SAYS HE EXPECTS THE STATE TACKLE THE ISSUE IN THE UP COMING GENERAL ASSEMBLY SESSION.

>> WE MUST REDUCE BARRIERS TO PRODUCTION OF HOUSING AND THUS PRODUCE MORE.

AND AT THE SAME TIME WE MUST INSIST MUCH OF THAT HOUSE SOMETHING AFFORDABLE AND PROTECT THE VULNERABLE RENTERS.

>> FOR NOW, BOBBY HENDERSON SAYS SHE IS PUTTING HER HOPES IN THE ANNE ARUNDEL COUNTY COUNCIL WHEN IT COMES TO FULFILLING HER DREAM OF BECOMING A HOMEOWNER.

>> PASS THE BILL.

THAT IS MY BEST HOPE I'M PRAYING ON THAT.

>> I'M SUE COPPIN FOR "STATE CIRCLE".

>> Jeff: THANK YOU.

JOINING US ANIRBAN BASU C.E.O.

OF THE SAGE POLICY GROUP ALSO CHIEF ECONOMIST OF ASSOCIATED BUILDERS AND CONTRACTORS.

THANK YOU FOR JOINING US.

WHAT ARE YOU SEEING NOW IN THE HOUSING MARKET?

>> VERY EXPENSIVE FOR EVERYONE, JEFF.

IF YOU ARE A RENTEDDER, RENTS ARE VIZ EN AND THEY KEEP RISING.

IF YOU LOOK THE THE INFLATION DATA AND INFLATION HAS BEEN COMING DOWN, A LOT OF THAT IS ATTRIBUTE 5B8 TO RISING APARTMENT RENTS.

AND FOR THOSE WHO ARE LOOKING TO BUY A HOME, THERE'S SCANT INVENTORY OF PROPERTIES.

BECAUSE MANY HOMEOWNERS ARE NOT LOOKING TO SELL THEY ARE LOCKED INTO LOW RATES.

SO THEY ARE NOT GOING ANYWHERE.

WE HAVE HIGH PRICES STILL AND THAT IS PART OF THE ASPECT OF THE PANDEMIC THAT LINGERS ON AND HIGH MORTGAGE RATES WHICH FOR A YOUNGER BUYER THEY HAVE NOT SEEN IT BEFORE.

IF YOU PUT IT TOGETHER A BUYER OR RENTER, HOUSING IS EXPENSIVE RIGHT NOW.

>> Jeff: THE HIGH MORTGAGE RATES MIGHT BE EXPECTED TO FORCE PRICES DOWN AT SOME POINT.

BUT AS YOU MENTIONED INVENTORY IS SCARCE BECAUSE PEOPLE WHO HAVE LOW MORTGAGE RATES MAYBE THIS IS GOING TOO FAR BUT THEY LOVEMAKING THE MORTGAGE PAYMENT BUT THEY ARE ONLY PAYING 2.5 OR 3%.

>> THAT IS RIGHT.

THAT LOOK AT THE STATEMENT AND THAT MORTGAGE RATE IT'S FANTASTIC.

WHAT THAT MEANS IS, WE DON'T HAVE A LOT OF PEOPLE TO TRANSACT WHETHER BUYERS OR SELLERS BECAUSE THEY ARE LOCKED INTO THE LOW MORTGAGE RATE SO YOU ARE NOT GOING ANYWHERE.

WHEREVER YOU ARE IN THIS GREAT STATE OF MARYLAND WHERE ARE YOU GOING?

YOU ARE NOT GOING ANY PLACE UNLESS THERE IS A NEW JOB IN OTHER STATE OR YOUR SPOUSE IS MOVING SOME PLACE ELSE.

HERE WE ARE LOW INVENTORY, NOT A LOT OF BUYERS OUT THERE.

SO THE PEOPLE UPSET WITH THIS ECONOMY MORE THAN ANYBODY IS RESIDENTIAL REALTORS.

THEY ARE NOT SPENDING TIME AT THE SETTLEMENT INDUSTRY.

AND TITLE AGENTS.

THE HOUSING MARKET IS FROZEN SHUT AND WILL TAKE LOWER RATES TO UNFREEZE IT.

>> Jeff: HOW ABOUT THE BUILDERS?

THERE'S PENT UP DEMAND AND MAYBE THEY ARE IMPACTED BY INFLATIO AS WELL IN TERMS OF THEIR INPUT, LUMBER, LABOR, AND SO FORTH.

>> YEAH.

EARLY DURING THE PANDEMIC LUMBER PRICES TOOK OFF AND THEY'VE COME DOWN BUT MORTGAGES ARE EXPENSIVE AND IN SHORT SUPPLY.

TO BUILD A NEW HOME IS EXPENSIVE.

THE LAND IS EXPENSIVE ESPECIALLY IN MARYLAND.

WHETHER THERE'S NOT MUCH LAND AVAILABLE FOR PURCHASE AND THAT IS BUILDABLE.

AND YOU PUT THAT TOGETHER AND BUILDERS HAVE A TOUGH TIME.

NOW, ONE GROUP THAT HAS TRANSACTED ARE PEOPLE BUYING ALL CAR.

WE HAVE -- CASH.

WE HAVE PEOPLE WILLING TO BUY ALL CASH.

OR PERHAPS THEY ARE WEALTHY ENOUGH THEY ARE BORROWING MONEY AT 70% SOUNDS -- 7% SOUNDS HIGH BUT THEY USED TO PAY 15 AT ONE TIME.

BUILDERS HAVE OPPORTUNITIES OUT THERE PARTICULARLY AT THE HIGHER END OF THE MARKETPLACE WHICH IS OFTEN WHERE THEY WANT TO BE BECAUSE THEY MAKE THE MOST MONEY.

>> Jeff: IF YOU ARE BUILDING MULTIFAMILY ARE THERE PLACES WHERE GOVERNMENT POLICY CAN MAKE A DIFFERENCE AND BRING UP SUPPLY?

I'M THINKING MARYLAND IS A CROWDED PLACE INSIDE THE BELTWAYS THERE'S THE OPPORTUNITY FOR INFILL AND IF YOU ARE AN OUTLYING AREAS MAYBE YOU ALLOW MORE DENSITY THEY TALK ABOUT THE ACCESSORY DWELLING UNITS.

WHAT WOULD YOU RECOMMEND?

>> JEFF, WE HAVE CONSTRAINED POLICY MAKING WITH RESPECT TO HOUSING.

IN A LOT OF COMMUNITIES, SCHOOLS ARE CROWDED.

POLICYMAKERS DON'T WANT TO ALLOW A LOT OF DENSITY AND NEW APARTMENT UNITS BECAUSE THEY ARE WORRIED ABOUT SCHOOL OVERCROWDING AND TRAFFIC.

JUST THERE'S DEMOCRATIC PROCESS AND A LOT OF PEOPLE DON'T LIKE NEW DEVELOPMENT.

IN THE CENTRAL MARYLAND AREA THE PLACE THAT WOULD LIKE TO SEE MORE DEVELOPMENT IS BALTIMORE CITY.

BALTIMORE CITY WANTS TO REPOPULATE BUT IT'S HOME TO THE HIGHEST PROPERTY TAX RATES IN THE STATE.

SO THAT LIMITS DEVELOPMENT ACTIVITY AND LIMITS THE NUMBER OF PEOPLE WHO WANT TO LIVE HERE.

REAL CHALLENGES FOR CENTRAL MARYLAND AND PARTS OF MARYLAND IN TERMS OF PROVIDING ENOUGH HOUSING.

WHAT YOU GET AT THE END OF THE DAY, YOU GET HIGH RENTS AND HIGH HOME PRICES THAT IS EXACTLY WHAT CHARACTERIZES MUCH OF MARYLAND.

>> Jeff: LET'S TALK ABOUT THE INFLATION PROBLEM OVERALL.

LAST TIME YOU WERE ON THE SHOW, I BELIEVE YOU CORRECTLY CALLED THE PEAK IN INFLATION.

WHAT DO YOU SEE GOING FORWARD NOW?

>> THE PEAK OF INFLATION WAS JUNE OF 2022 WHEN IT PEAKED AT 9.1% ON A YEAR-OVER-YEAR BASIS.

AND NEW DATA SUGGESTS THAT INFLATION IS DOWN TO 3.1%.

WE ARE GETTING READY TO THE 2% TARGET AND MOST ECONOMISTS EXPECT FURTHER DISINFLATION.

I DON'T THINK IT'S GOING TO A SMOOTH MOVE TO 2%.

AND I MIGHT BE MORE PESSIMISTIC BUT WAGES ARE NOT RISING.

SERVICE SECTOR COSTS ARE RISE, HOTELS AND RESTAURANTS AND HOW EXPENSIVE IT'S BECOME.

THERE IS A POSITIVE ASPECT.

PEOPLE MAKING MORE MONEY BUT THERE IS A DIFFICULT ASPECT WHICH IS THE PRICES KEEP RISING.

WE HAVE MOVED FROM 9% INFLATION TO 3% INFLATION THAT IS THE GOOD NEWS BUT THE MOVE TO 2% MIGHT BE CHALLENGING AND THAT IS WHY PEOPLE EXPECT HIGH INTEREST RATES FOR LONGER BECAUSE THE FEDERAL RESERVE IS TRYING TO GET US BACK TO 2% INFLATION AND WE ARE NOT THERE YET.

>> Jeff: THERE WAS A "CNN" HEADLINE CITING THE STATE WITH THE LOWEST STATE UNEMPLOYMENT RATE IN AMERICAN HISTORY AND THAT STATE WAS MARYLAND.

AND THE DATA GOES BACK 50 YEARS BUT THAT IS A LONG PERIOD OF TIME.

WHAT IS GOING ON WITH MARYLAND'S DATA?

IT'S GREAT NEWS.

BUT WHY ARE WE SEEING IT NOW?

>> WELL, LIKE ALL THINGS ECONOMIC IT'S GREAT NEWS AND NOT GREAT NEWS.

1.6% WAS THE UNEMPLOYMENT RATE THE LOWEST RECORDED BY A STATE IN AMERICAN HISTORY AT LEAST WHILE THE DATA HAVE BEEN MEASURED.

AND THE GOOD NEWS IS IF YOU ARE A JOB SEEKER THERE'S LOTS OF OPPORTUNITY TO FIND A JOB IN MARYLAND IN LOGISTICS OR RETAIL OR HOTELS OR PROFESSIONAL SERVICES YOU NAME IT PROBABLY A JOB WAITING FOR YOU IF YOU HAVE THE WILLINGNESS TO WORK.

ON THE OTHER HAND FOR EMPLOYERS, IT MEANS DIFFICULT TIMES STAFFING UP FULLY.

IT MEANS QUITE RAPIDLY RISING WAGES.

IT MEANS ALL THINGS EQUAL AT THE PROFIT MARGIN IT DEPENDS.

FROM MY PERSPECTIVE HERE IS THE ISSUE.

MARYLAND NEEDS TO GROW THE TAX BASE.

WE HAVE MAJOR FISCAL CHALLENGES WE NEED TO ADD TAXPAYERS.

HOW ARE GROWING ENTERPRISES TO GROW THE BUSINESSES WHEN NO ONE% IS LEFT TO HIRE.

WE ARE CONSTRAINED IN TERMS OF OUR GROWTH BUT WE HAVE BIG BILLS TO PAY.

WE HAVE IMBALANCES AND THE GOVERNOR AND OTHERS ARE DEALING WITH RIGHT NOW.

>> Jeff: DOES THAT MEAN THERE'S PENT UP INFLATION STILL TO COME IN THE SYSTEM?

I'M THINKING ABOUT AN EMPLOYEE WHOSE WAGES MAYBE THAT NOT KEPT UP WITH THE INFLATION WE'VE SEEN.

THEY WILL HAVE LEVERAGE.

IT'S TOUGH FOR COMPANIES TO HIRE RIGHT NOW.

SO THEY GO TO THE BOSS AND THEY HAVE A GOOD CASE AND THEY ARE PROBABLY GOING TO GET THAT RAISE.

AND THEN THE COMPANY PASSES THE COSTS ON TO CONSUMERS AND YOU GET THE CATCH 22 OF AN INFLATIONARY CYCLE.

>> WHO YOU ARE ASKING EXCELLENT QUESTIONS THAT IS RIGHT ON TARGET.

THAT WHAT IT IS.

IT'S WAGE-PUSH INFLATION WE HAVE A TIGHT LABOR MARKET AND THERE'S UNFILLED THE JOB OPENINGS THE ECONOMY IS GROWING.

WAGES ARE PUSHED HIGHER AND THAT TRANSLATES TO HIGHER PRICES FOR CONSUMERS AND OTHERS IN THE ECONOMY AND THAT IS EXACTLY RIGHT.

AND THIS DYNAMIC PERSISTS.

YOU CAN SEE THAT IN LABOR NEGOTIATIONS IN WHICH LABOR HAS THE ADVANTAGE RIGHT NOW WITH RESPECT TO UAW OR OTHER NEGOTIATIONS TEAMSTERS AND U.P.S.

THAT KIND OF THING.

SO THAT'S WHY I SAY THE MOVE TO 2% INFLATION IS NOT THAT SMOOTH IN MY JUDGMENT.

THAT WILL BE STICKY NEXT YEAR AND THEREFORE INTEREST RATES HIGHER FOR LONGER.

AND THAT, AGAIN, MEANS THAT THE ECONOMY IS NOT READY TO GROW THAT RAPIDLY IN 2024.

>> Jeff: GIVE US EMPLOYMENT ADVICE FOR SOMEBODY OUT THERE WHO IS LOOKING FOR A JOB MAYBE THEY HAVE A JOB AND SMELL AN OPPORTUNITY TO MOVE UP, GET A FRESH START SOMEWHERE.

WHAT SECTORS OF THE MARYLAND ECONOMY WOULD YOU ADVISE LOOKING AT?

>> LOOK AT LOGISTICS.

WE ARE A STATE BALTIMORE HAS GROWN PHENOMENALLY.

LOTS OF JOB OPPORTUNITIES.

LOGISTICS LOOKING FOR ACCOUNTANTS.

ARCHITECTURAL FIRMS.

THE STATE NEED MORE BUS DRIVERS AND MORE TEACHERS AND CARPENTERS.

ELECT TRITIONS PLUMBER, PIPEFITTERS YOU NAME IT THERE ARE OPPORTUNITIES HERE IN MARYLAND AND THAT IS WHAT YOU GET WITH A GROWING ECONOMY AND UNEMPLOYMENT OF LESS THAN 2%.

FIND YOUR PASSION.

FIGURE OUT HOW TO MONETIZE THAT PASSION AND GO FOR IT.

THERE ARE OPPORTUNITIES IN MARYLAND AND I HOPE WE ATTRACT MORE PEOPLE TO THE STATE BECAUSE WE NEED MORE POPULATION AND TAXPAYERS TO PAY DOWN THE BILLS THAT WE HAVE GOING FORWARD INCLUDING TO FINANCE PUBLIC EDUCATION IN THE STATE.

UNFORTUNATELY WE DON'T HAVE A LOT OF HOUSING CHOICES FOR THE JOB SEEKERS MOVING TO MARYLAND UNLESS IT IS NOT A PERFECT WORLD AND MARYLAND IS A GREAT STATE.

>> Jeff: THANKS TO ANIRBAN BASU.

THAT IS "STATE CIRCLE" AND JOIN US EVERY WEEK FOR THE LATEST ON MARYLAND'S POLITICAL STAGE.

YOU CAN SEE VIDEOS OF RECENT PROGRAMS AT... AND YOU CAN FOLLOW US ON SOCIAL MEDIA AT MPT NEWS.

WE'RE BACK MONDAY WITH "DIRECT CONNECTION" YOUR CHANCE TO ASK THE EXPERTS THAT IS MONDAY EVENING LIVE AT 7:00 P.M. NOW, FOR ALL OF US AT MPT THANK YOU FOR WATCHING AND WE'LL SEE