Investors are targeting Baltimore’s housing sector, so there is no need to promote the city at property and investment expositions. Baltimore has taken the lion’s share of investment into real estate property. The strength of the interest suggests that investors do not have doubts about this metropolitan area. They are driven by economic growth prospects and the health of the local occupier markets. As property prices soften, more and more investors could be drawn to Maryland, attracted by the low price-point that enable them to expand their portfolios. Baltimore is on the rise and it is recommendable to get into the market soon. Let us take a closer look at the housing market and try to understand why Baltimore property is a good investment.
3 factors that set Baltimore’s housing market apart
Housing sales in Baltimore continue their ascension. Undoubtedly, it is one of the best performing markets in the United States. Baltimore has demonstrated steady growth in its housing market. The information available suggests that there has been a 13% increase. The metropolitan area attracts strong rental investment, not to mention that there are opportunities in purchasing local real estate that should not be neglected. These are the 3 main factors that set Baltimore’s housing market apart.
1. Baltimore Adds A Considerable Amount of Jobs
The metropolitan area offers paths to careers for people of all ages. It is expected that Baltimore will add numerous job opportunities in 2019. Therefore, finding an opening is not impossible. Baltimore is home to amazing companies to work for, such as Marriott International. The city has some of the best tech startups. Additionally, this place has a high number of universities and medical facilities, most of the residents finding employment with institutions like the Johns Hopkins University or the Veterans Health Administration.
Industries are rising above the competition to become the best of the best. When dependable employment is rising, more people are able to afford to buy or rent a house. As the job market adds new jobs, people are scanning listings. There has been a significant increase in in the number of real estate units sold in March 2019, with 628 immovables sold so far. Many commercial buildings have been transformed into residential dwellings.
2. The Number of Households Has Increased
There is no denying the fact that Baltimore has a high percentage of renters, in particular, college students. However, it is important to remember that it is a predominantly homeowner city. Beginning in 2010, the number of households has increased by an average of 5,600. Household growth is not expected to slow down owing to the population growth. Baltimore is full of condos, townhomes, single-family units, and multifamily homes.
Median home price in Baltimore stands at $150,500. As compared to top markets such as Scottsdale, Arizona, where the median home price is $481,200, real estate property is affordable. In Scottsdale, home values have gone up by 6,1% over the past year. There is still affordable housing. take a look at condos listed for sale in Scottsdale AZ and you will convince yourself. Getting back on topic, Baltimore represents the perfect choice for investors who do not have access to large sums of money. investment properties are reasonably priced.
3. Population Demographics
Real estate is a people business. People – in other words, the dwellers – are the key source for demand for real estate. Important shifts in the demographics have an impact on the housing market trends. For instance, many consider downsizing in retirement. People may choose relocating in retirement to Florida. Real estate investors have increased their exposure to residential assets, including but not limited to healthcare and retirement homes, and have discouraged residents from moving home.
In terms of demographics, Baltimore is the second city in the United States to reach a population of 100,000, after New York. Population growth is largely driven by natural increase. Population growth has been strongest in the Southern Suburbs because it is located close to the District of Columbia. Investors need not fear there will be vacancies. They are making the safest long-term investment. The number of home renters has jumped between 2018 and 2019.
Targeted Real Estate Investment Neighborhoods
2019 can be considered a great year for real estate investing in Baltimore. Besides the fact that the economy is booming, the tech sector contributing the most, Baltimore’s connection to Washington D.C. is stronger than ever. The cost of living is slowly but surely rising, while Baltimore is relatively affordable. The point is that the real estate market is highly reliable as far as investing is concerned. In what follows, we will highlight the most popular neighborhoods from an investment standpoint.
· Washington Village
Washington Village, commonly referred to as Pigtown, is characterized by diversity (economic, social, and racial). It is a good place to eventually acquire rental real estate. This neighborhood is located close to downtown, offering a great many choices in terms of shopping and dining. Washington Village accommodates numerous students, young couples, and retires. This place is rapidly growing and welcoming more and more residents. Regardless of the rental strategy pursued, it is possible to make a handsome profit.
· Patterson Place
Patterson Place has a population of approximately 2,808. It is considered one of the best places to live in Baltimore. There are many bars, restaurants, coffee shops, and parks. Even an urban adventurer would consider living here. It is a great idea to buy an investment property in this small community. It has a stable housing market, but most people are willing to rent when it comes to finding a place they can call home. The population is interested in beautifully landscaped homes, just so you know.
· McElderry Park
McElderry Park is focused on revitalization. This Baltimore neighborhood is looking forward to turning things around and is consequently looking for savvy investors like you. Invest in multi-family homes. You can undertake the occasional flip in the near future if you want to. Property prices are advantageous, not to mention that the rental property cap rate is good. Choose to be part of the forward progress.
The Baltimore housing market is not declining. Many spots offer considerable returns and the city is changing for the better. Beginners in real estate investing, whether improving properties and selling them later or renting to those interested, should take the time to understand the main determinants in demand in the real estate market and take an example from successful investors. Creating a secure and highly lucrative future is not easy. Baltimore is a strategic approach that will definitely appeal to real estate investors. Many prefer living indoors and let us not forget about demographic growth.