The Baltimore "Charm City" Market
Founded in 1729, Baltimore is a major historical destination and played a key role during the American Revolution. The city was originally a working-class port town with a focus on shipping, transportation and manufacturing. Today, Baltimore is the economic and cultural hub of Maryland, and known for its diverse economy, dynamic Inner Harbor near the Chesapeake Bay, and the world-renowned Johns Hopkins Hospital. Baltimore is home to literally hundreds of different districts providing plenty of options for real estate investors.
The real estate market in Baltimore is strong and growing. Prices in many parts of the city are lower than the surrounding counties and despite Baltimore being only 40 miles from Washington, D.C., the cost of living is just 6% above the national average. Its proximity to Washington D.C. has led to years of federal investment and has also helped to keep the demand for housing in the Baltimore real estate market strong.
There are several major colleges and universities in the Baltimore area, including: Community College of Baltimore County, College of Notre Dame of Maryland, Johns Hopkins University, and Loyola University Maryland. The region is home to various agency headquarters and major hubs including the National Security Agency (NSA), Social Security Administration (SSA), Center for Medicare and Medicaid Services (CMS), and the U.S. Cyber Command. Additionally, Baltimore has a diversity group of top employers including T. Rowe Price, Community College of Baltimore, Greater Baltimore Medical Center, Towson University, McCormick and Company, and Lockheed Martin.
Baltimore is still listed as one of the best places to buy rental property for cash flow and appreciation. Home values in Baltimore have increased by 16.1% over the last year, and over the past five years, home values in Baltimore have increased by more than 36%. The sales-to-list price ratio is 100%, meaning that approximately every home listed for sale is selling for the asking price. Median rent in Baltimore is $1,550 per month for a 3-bedroom home, according to the most recent research by Zumper (as of December 2021) and rents in Baltimore increased by an average of 5% year-over-year. Renter-occupied households in Baltimore make up 52% of the occupied housing units and continues to show strong market trends for real estate investment in the city.
Key Metrics
Population Growth
- Baltimore is the most populous city in Maryland and 30th-most populous city in the U.S.
- Baltimore City is home to nearly 586,000 residents with more than 2.8 million people in the metropolitan area
Job Market
- GDP of Baltimore-Columbia-Towson MSA is more than $205.8 billion, according to the Federal Reserve Bank of St. Louis, and has grown by more than 34% over the past ten years.
- Median household income in Baltimore is $83,160 while per capita income is $43,139.
- Baltimore ranks #4 among the top 25 largest metro areas for density of advanced degree holders and is among the top 3 large U.S. metro areas for IT jobs including computer network support specialists, computer hardware engineers, and information systems analysts.