Baltimore Real Estate Market: House Prices, Trends & Stats

Baltimore Real Estate Market: House Prices, Trends & Stats

According to data from NeighborhoodScout, the appreciation rate in the Baltimore real estate has been at 15.50 percent over the previous year. In the most recent quarter, the city’s appreciation rate was 5.74 percent. This percentage equates to annual appreciation of 15.03 percent. Compared to the rest of Maryland, the most recent annual appreciation rate in Baltimore is higher than 60 percent of other towns and cities in Maryland.

Baltimore’s home prices are around 40 percent more affordable than nearby Washington DC. This offers potential opportunities for those seeking rental properties in the Baltimore Washington Corridor. According to a recent report from WTOP News, Baltimore homes for sale are selling rapidly, which is on average less than 2 weeks on the market. Baltimore is worth considering if you are searching for a cheap real estate market with a high potential for return on investment.

A Glimpse of Baltimore

Baltimore is the largest city in Maryland as well as a vital port at the mouth of the wide Patapsco River. Known as the City of Charm, this charming city is the place where everything blends perfectly, from cuisines around the world to numerous cultural attractions and museums. Baltimore offers a different charm for visitors with its symphony orchestra, historical sites, pavilions, pedestrian zones, and more.

Just like most other metropolitan centres, life here can be non-stop. But fortunately, Baltimore’s surrounding areas as well as Maryland itself, are home to the most gorgeous villages in the United States, including extensive coastlines and national parks. Besides, the city is also home to literally hundreds of different districts, which is why Baltimore is nicknamed the City of Neighbourhoods.

Founded in 1729, Baltimore is a main historical destination. It also had an important role during the American Revolution. This city was initially a working-class port town focusing on transportation, shipping, and manufacturing. Now, it has become the cultural and economic centre of Maryland. Baltimore is famous for its varied economy, vibrant Inner Harbour near the Chesapeake Bay, as well as the world-renowned Johns Hopkins Hospital.

Some of the most popular tourist spots in Baltimore include Sandy Point Park, Chesapeake Beach, Annapolis, Gunpowder Waterfall Park, and Ohio Canal National Historical Park.

Baltimore Real Estate Market Overview

There is a building boom happening on the Baltimore real estate market. According to a report from WBAL TV 11, rentals are in high demand, especially in popular areas like Brewers Hill and other areas along the waterfront. However, the housing demand in the Baltimore metropolitan area was down as of May 2022, according to statistics from Bright MLS. All market sectors in the Baltimore-Washington metro area decreased in demand during the month.

But luxury condos have seen a bit of a gain. The biggest decline in buyer interest happened in condos with the lowest prices and single-family homes. The monthly supply for each type of property slightly varied month-over-month, ranging from single-family homes with mid prices and condos with lower prices to 1.9 months for more expensive condominiums.

  • As of May 2022, Zillow Home Value Index for a house in Baltimore is $206,120.
  • Home values in Baltimore have gone up by 13.8 percent over the previous year and by more than 42 percent over the last 5 years.
  • According to the latest research from Realtor.com, the median listing price of a single-family house is $210,000.
  • The median selling price of a single-family house in Baltimore is $240,000.
  • Homes for sale in Baltimore averagely spend 48 days on the market from listing to being sold.
  • Of the 230 neighbourhoods in Baltimore, Carrolton Ridge is the most affordable one to buy a home where the median home listing price is $35,000. While the most expensive neighbourhood is Locust Point where the median home listing price is $460,000.

Baltimore Real Estate Market Trends

Due to historically low interest rates, real estate Baltimore has been thriving during the global pandemic. Regardless of the increasing rates, the real estate market in Baltimore is now performing incredibly well. The housing supply in this city is consistent with the national trend of increased demands for single-family houses. Currently, Baltimore has less than a month’s worth of housing inventory available.

As of April 2022, the total number of active inventories in Baltimore was 698 compared to 1,023 in April 2021. The total number of available homes decreased by 325 units or 31.7 percent. On the other hand, Baltimore County had 0.7 months of supply available as of April 2022, compared to 1.0 months in April 2021. These make Baltimore a hot seller’s market. If this trend continues, the housing market in the city will be sizzling hot and homes will likely sell more rapidly.

Baltimore Real Estate Market Forecast

How will the real estate market in Baltimore be in the upcoming years? First, we need to take a look at Zillow’s price trends records over the last few years. Baltimore has a track record of being among the best long-term real estate investments in the nation. Based on Zillow, the typical home value in Baltimore County has appreciated by about 46 percent since the past 10 years. Home values in Baltimore have risen 10.7 percent over the last year alone.

The current typical home value in Baltimore County is $330,136. This shows that 50 percent of all housing stocks in the area is worth more than $330,136 and 50 percent is worth less. Zillow Home Value Index represents the entire housing stock, not just homes that list or sell in a certain month. The supply is surpassing the demand, putting buyers at advantage over sellers to negotiate the price.

In other words, there are more homes for sale than purchasers in the marketplace. So, Baltimore is a hot seller’s housing market. Zillow forecasts that home values in Baltimore will be up 6.7 percent by April 2023. Home values in Baltimore city are even cheaper at $206,120. But this increased 13.8 percent over the last year and is expected to continue to increase for the upcoming 12 months.

The Baltimore real property market has been keeping up with the national industry. However, given the global pandemic, markets across the nation may begin to act independently. Though it is still too early to exactly tell what Baltimore real estate will be in the foreseeable future, it is not impossible to interpret the impact of the pandemic. Here are some forecasts regarding the housing market in Baltimore.

  • Improving Unemployment Will Increase Demand

During the global pandemic, unemployment soared to historic levels in Baltimore. However, as more Americans get vaccinated, Baltimore keeps lifting restrictions so that there will be improvements in unemployment. At around 5.4 percent, the unemployment rate in Baltimore has been cut in half since spiking the previous year.

If the trends continue as predicted, more homebuyers may get into the market and raise competition further. As a result, there seems to be a developing correlation between higher appreciation rates and strengthening the economy.

  • New Builds Will Struggle to Help

Building permits keep leaving a lot to be desired. As a result, inventory levels will stay tight for the foreseeable future. So, there will likely be a good opportunity that appreciation rates will stay in the double digits until new listings can release pressures.

  • Rentals Will Receive an Influx of Demand

Without sufficient inventory levels, more people will be forced to rent. In fact, the 14.66 price-to-rent ratio in Baltimore makes sure that the city’s rental market will receive additional attention. Home affordability will keep rising competition over the tight inventory level available, forcing more people to remain renting though they can afford to buy a home. Consequently, rents are predicted to rise.

Population Growth in Baltimore

Though the population of Baltimore continues to decrease, the city is taking proactive actions to turn the table. Baltimore’s Growth Plan for 2030 aims to improve the quality of life quality for long-term residents while attracting more people to live and work in Baltimore City. Here are some stats about the population growth in Baltimore.

  • Nearly 586,000 residents are calling the City of Baltimore home, with nearly 9.8 million people in the Baltimore-Washington-Arlington CSA and more than 2.8 million in the metropolitan area.
  • Baltimore is the most populated city in the state of Maryland as well as the 30th most populated city in the United States.
  • The population of Baltimore has increased by around 13 percent since 1998 but decreased 0.1 percent the previous year.
  • Though the population of Baltimore City is slowly down, immigrants help to slow the decline. New employers and investments keep adding the list of reasons why people are interested in living in Baltimore.

Job Market in Baltimore

Baltimore’s closeness to Washington DC has led to federal investment for years. As the economy continues to improve, employment sectors show signs of growth. Based on BLS, the ones that show the fastest growth include financial activities, transportation, trade, manufacturing, and construction. A variety of companies and agencies are headquartered in Baltimore, such as the US Cyber Command, Social Security Administration, and National Security Agency.

According to a recent report, local talent and macro factors make cybersecurity become a developing industry across Baltimore as well as Maryland. Below are some stats regarding the job market in Baltimore.

  • Based on the Federal Reserve Bank of St. Louis, the GDP of Baltimore MSA is more than $205.8 billion. Also, it has grown by over 34 percent over the last decade.
  • Last year, job growth in Baltimore rose by -.42 percent while the current unemployment rate is 3.3 percent, according to the BLS as of April 2022.
  • Referring to US News & World Report, Baltimore’s average annual salary is $62,510, compared to $56,310 US average.
  • The per capita income in Baltimore is $42,782 while the median household income is $83,811.
  • Major employers in Baltimore County include Lockheed Martin, Towson University, Greater Baltimore Medical Centre, and Community College of Baltimore.
  • Targeted growth industries in the region are energy, agriculture, healthcare, manufacturing, logistics, IT, and life sciences.
  • Top colleges and universities in Baltimore include Loyola University Maryland, Johns Hopkins University, College of Notre Dame of Maryland, and Community College of Baltimore County.

Life Quality in Baltimore

Based on a report from WJZ in Baltimore, Baltimore is the only city in the state that ranks among the best places to live in the country. People call it a pleasant and fun place to call home as it is home to lively nightlife and music as well as elegant buildings. The people in Baltimore are also friendly and warm.

  • Baltimore is only 40 miles away from Washington DC. However, the living cost in this city is only 6 percent above the national average.
  • US News & World Report ranks Baltimore as the 64th best place to retire in the United States and 84th best place to live.
  • Forbes ranks the Baltimore metro area 87th best place for careers and business and 30th best place for education.
  • Climate in Baltimore is humid subtropical with long, hot summers and mild winters with sporadic snowfall.
  • Baltimore is home fresh seafood, enchanting waterfront dining spots, and Maryland blue crabs that make the city becomes one of the top foodie hotspots
  • The world-famous Walters Museum and Baltimore Museum of Art are located in Baltimore, making the city a great destination for art lovers.
  • Baltimore has 3 state-designated arts and entertainment districts, which are the Bromo Arts & Entertainment District, Highlandtown, and Station North.
  • Baltimore’s top hospitals include University of Maryland Medical Centre and Johns Hopkins Hospital.
  • Baltimore’s professional sports teams include NFL Baltimore Ravens and MLB Baltimore Orioles.

Baltimore Real Estate Market FAQs

  • Is Baltimore a Good Place to Live?

Baltimore is ranked by US News & World Report as one of the best places in the country to retire and live. Though it is just 40 miles from Washington DC, the living cost is just 6 percent above the national average.

  • Is Baltimore a Good Place to Invest in Real Estate?

Baltimore is a hot seller’s market as the inventory level is low. If the trend continues, home values and home prices in this city are expected to continue increasing.

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