Baltimore was ear marked as the number one USA investment city for 2019. It is currently rated as the number 1 grossing rental market and is therefore getting a lot of attention from overseas investors.
Baltimore offers investors a significant opportunity to get ahead of the game, not just because the metropolitan area is home to nearly three million people but because properties are well priced and rents are high.
There are several industries responsible for boosting the Baltimore real estate market including healthcare, education, life sciences, and cybersecurity. These sectors are predicted to enjoy continued growth through the next decade as millennials flood the job market.
Before you make any real estate investment decision, it’s worth knowing the numbers for Baltimore.
The average property price for a tenanted city property is only $50,000, while the average rent for a city tenanted property is $1,000. This works out as an average net return of over 18%. Baltimore real estate investments are highly affordable. The average property price is well below the level in many other fast-growing markets such as San Diego, Los Angeles, and Miami.
The Baltimore Sun even noted that it can be cheaper to buy than it is to rent in the Baltimore area, which is great news for investors looking to generate a healthy return. Significant opportunity and relatively low property prices make Baltimore one of the hottest real estate markets in the USA.
According to the latest CoreLogic Case-Shiller report, Baltimore has been included in the top 10 major markets expected to see the biggest increases in home prices over the coming year.
As a result, Baltimore rents have increased on a level equal to that of cities like San Diego, San Francisco and New York. In each of these cities, renters are allocating more than the suggested 30% of income to rent.
According to leading USA property experts Baltimore real estate is having a Goldilocks moment, the market’s not too hot and not too cold – it’s just about right to have all of your porridge and eat it.
The Rental Market
The Baltimore rental market is seen as one of the best in the whole of the US, there are over 2.7 million people residing in the Baltimore region alone and a further 900,000 people who commute into Baltimore everyday.
The Baltimore metro area has seen an increase in jobs in 2018 which is also fuelling the rental market, there is a widening gap between rent and mortgages, driven by steep increase in area home prices.
A recent analysis found that Baltimore has more renters than homeowners. The trend has slowly been developing over the past decade, with RentCafe.com finding that 52.5% of residents in Baltimore live in a rented property. Homeownership also continues to fall in the city, with just 281,290 residents owning homes.
According to Rent Jungle with is one of the biggest rental sites in the US as of October 2018, average rent for an apartment in Baltimore, MD is $1471 which is a 3.2% increase from last year when the average rent was $1424..
Baltimore is the largest city in Maryland and the 26th largest city in the United States. The city is located in central Maryland along the Patapsco River. Baltimore is an independent city that is also called Baltimore City. At the 2010 census, the population of Baltimore was 620,961, the Baltimore metropolitan area is much larger, however, with a population estimated at 6.7 million. This makes it the 20th largest metropolitan area in the country.
Growth and Returns
At the end of the first quarter of 2018, Baltimore City’s economy remains in a period of sustained economic growth. City unemployment rates have increased by less than one percentage point since December, with the main factor for this increase being an overall growth in the labor force. The residential real estate market continues to grow as more units are being sold at a faster rate than the same period in 2017.
According to Trulia Baltimore market trends indicate an increase of $10,900 (5%) in median home sales over the past year. The average price per square foot for this same period rose to $161, up from $156, with Baltimore City showing close to an 11 percent increase.
Tech employment base has grown 29.5 percent over the past five years, a faster rate than in top tech markets like Austin, San Diego, Denver and Philadelphia but the cost of living in Baltimore is much lower compared to other northeastern markets, this is pushing the rental market.
Management and Aftercare
In Baltimore we work with one, reliable and consistent partner who is local to the area and has been a hands-on expert in the local market for over 10 years. Our partner is one of the leading Baltimore management companies who will collect and deposit your rent, maintain and repair the property, assess and interview tenants and keep you updated on a regular basis.