Baltimore Investment Property for Sale - 2023 Rental Home Appreciation
Baltimore, Maryland, is considered a prime location in the Mid-Atlantic. It's located along the I-95 corridor northeast of Washington, DC.
Greater Baltimore is the 20th largest MSA by population in the U.S., with 2.8 million residents. The broader Baltimore-Washington, DC- Arlington, VA CSA is home to 9.8 million residents.
The Baltimore real estate market holds a lot of potential for real estate investors. Not long ago, Baltimore ranked high on nearly every national list for foreclosures. Today, thanks to several revitalization projects and renovations, Baltimore City is experiencing the early stages of a real estate boom.
According to Realtor.com, the median listing price in Baltimore is $159 per square foot, and the median sales price is $210,000. The median rent in Baltimore is $1,740 per month. Home values in Baltimore have increased by 16% since last year. Baltimore's affordability and appreciation attract many first-time home buyers who become commuters to Arlington, Virginia, and Washington, DC as well as real estate investors.
Baltimore's prime location, affordable housing, and growing appreciation make it a great potential investment opportunity.
Baltimore's Attractive Housing Market
Baltimore is known as the "City of Neighborhoods" because it's home to over 100 distinct, vibrant communities. Some of the best neighborhoods in and suburbs of Baltimore include Canton, Columbia, Federal Hill, Hampden, and Towson.
- Canton: Canton is located along the Patapsco River just south of Johns Hopkins Hospital. It used to be the epicenter of Baltimore's industrial activity. Canton's old factories have undergone extensive renovations and turned into condos, offices, and shops. The median listing price in Canton is $230 per square foot, and the median sales price is $375,000. The median rent is $2,540 per month.
- Columbia: Columbia, Maryland, is ideally situated along I-95 between Washington, DC, and Baltimore. Its real estate market offers single-family homes and townhouses that cost more than in Baltimore. The median listing price in Columbia is $220 per square foot, and the median sales price is $425,000. The median rent is $2,030 per month.
- Federal Hill: Federal Hill is located along Baltimore's Inner Harbor just south of downtown and north of I-95. It's known for its renovated 19th-century row houses and historic Cross Street Market. The median listing price in Federal Hill is $238 per square foot, and the median sales price is $372,400. The median rent is $2,050 per month.
- Hampden: Hampden is located west of Johns Hopkins University along I-83. Its old mills have been converted into unique multi-family homes. Real estate investors can also find row houses and single-family homes in Canton. The median listing price in Canton is $223 per square foot, and the median sales price is $312,500.
- Towson: Towson is an unincorporated census area in Baltimore County bordered by I-83 and I-695. It offers residents a small-town feel with all of the conveniences of a big city. Home buyers and real estate investors can find everything from single-family homes to townhouses and condos in Towson's property listings. The median listing price in Towson is $210 per square foot, and the median sales price is $399,900. The median rent is $1,900 per month.
Rental Home Appreciation in Baltimore
Baltimore has a strong renters market. It was recently listed as the 4th best real estate market for single-family rental yield by Attom Data Solutions.
Key drivers of the city's rental market include its affordability and proximity to Arlington, Virginia, and Washington, DC. Just how many renters are in Baltimore? According to RentCafe, 49% of households in Baltimore are renter occupied.
Baltimore's strong rental market and its affordable home prices and appreciation offer many investment opportunities. Homeowners and property investors who want to earn rental income and increase their cash flow should consider leasing rental property in Baltimore.
Economic Growth in Baltimore
Not only is Baltimore ideally located and affordable, but it also has a booming economy.
Baltimore County is the 3rd most populous county in Maryland and Baltimore accounts for 50% of Maryland's GDP.
Baltimore has a diverse economy with several primary industries. These include financial services, transportation distribution and logistics, construction, manufacturing, education, and healthcare.
Baltimore's top federal employers are the Social Security Administration and Centers for Medicare and Medicaid Services.
Baltimore's largest private employers include T. Rowe Price, Community College of Baltimore County, Towson University, McCormick and Company, and Lockheed Martin.
Baltimore has a 10-year projected job growth rate of 25% and an average unemployment rate.
For years, Baltimore's real estate market has been underestimated. The city's prime location, affordability, appreciation, and solid economy make it a good investment opportunity. Real estate investors should consider taking advantage of low-interest rates and investing in a Baltimore rental property before word gets out about the market's potential.
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