Average House Price in Maryland

Baltimore, A Rising Real Estate Market

Baltimore's real estate market is one of the most underrated among major U.S. cities. Despite past challenges, the city is undergoing a rapid transformation. Thousands of young professionals are moving in, injecting vibrancy into the community.

Townhouses are the most common housing type in Baltimore. Until early 2024, desirable townhouses in good neighborhoods could be found for $300,000 or less. However, people are now realizing the city's real estate potential. Both short-term and long-term rentals consistently maintain high occupancy rates. Positive changes are happening even in previously undesirable areas. As the result, now you will need at least $400,000 to have your own townhouse in a desirable area. But you can still find very affordable townhouses in some neighborhoods where rapid changing is happening.

Check Vacant Notice

Whether you're looking to buy a home or invest in real estate, identifying a good property is crucial now more than ever. However, caution is necessary when purchasing properties in Baltimore City. Due to the rapidly rising market, some properties listed may not be legally rentable or habitable. The city enforces regulations regarding vacant properties. Properties left unoccupied for a specific period receive a Vacant Notice and penalty, making them uninhabitable and unrentable until the owner takes corrective action. Recently, I've observed many properties lacking rental potential on the market. For this reason, partnering with a knowledgeable realtor like Nathan Jeon of EXP Realty (it’s me) is highly recommended during your house hunt.

Ground Rent: Advantage or Inconvenience?

Some properties in Baltimore are listed at lower prices than comparable ones. This is often due to "ground rent." This means the owner of the building and the owner of the land are not the same. While typically the same person owns both land and the house, in Baltimore, it's pretty common for them to be different. Ground rent properties can be 10~15% cheaper than similar properties nearby.

Ground rent itself is relatively negligible, typically costing less than $200 per year, in many cases it’s under $100. Additionally, by law, if you wish to purchase the ground, the owner must sell it to you (ground rent redemption). While the cost of redeeming the ground rent is only a few thousand dollars, it comes with the hassle of dealing with city paperwork. However, for those with the time and resources, redeeming ground rent can be a profitable investment, especially considering the discounted price of the building. Also, these are staying longer on the market than other properties without ground rent. It means we can ask seller to assist your closing cost.

Overall, Baltimore's real estate market presents exciting opportunities for both homeowners and investors. However, a strategic approach and professional guidance are crucial for navigating the complexities and maximizing potential returns.