Why Invest in Maryland Real Estate?
Maryland is currently ranked amongst the ten richest states in the U.S. and has the highest median income in the country. With a population over six million and an unemployment rate well below the national average, the state’s economy is driven by diverse industries including bio-health and life sciences, IT and cyber-security, advanced manufacturing, and aerospace and defense.
The Free State has the fourth highest percentage of federal workers across the country, and is home to more than 60 federal agencies and twice as many federal laboratories as any other state. This combination of government agencies, academic institutions, and bio-health and life sciences research firms is spurring job growth in higher-paying positions, which has led to a spike in demand for both rental and residential properties, since in certain areas, supply can’t keep up with demand.
Investment Considerations for Vermont Real Estate
There are a number of factors to consider, including:
- Appreciating values, and high property taxes - TOver the course of the past year, home values have risen by 5.0% and are expected to rise by another 5.4% within the next 12 months. Unfortunately, however, being the state with the highest median income comes at a price, with property taxes that clock in as the 11th highest in the country. Many experts fear that these high property taxes, when combined with higher than average state and local taxes, may send many residents out-of-state, where the costs of living will be lower.
- Proximity to Washington DC - Many parts of Maryland are within commuting distance to Washington D.C. And since the state’s median home value is lower than D.C., it’s more affordable to live in Maryland and commute into the district. This accessibility helped keep property prices more stable during the 2008 economic downturn than in other parts of the country, where certain areas saw double-digit depreciation. This has also lead to more steady, consistent appreciation.
- A Strong Rental Market - High property values, coupled with high property taxes, make home buying unattainable for many living in Maryland, which helps to explain why 30% of the states population is renters and median rent prices are higher than the national average.
- High foreclosure rates - 14.6% of Maryland’s homeowners are presently behind on their mortgages, which is significantly higher than the national average. For investors looking to purchase homes below fair market value, Maryland is ripe for the picking. And since these displaced homeowners will still need housing options, the rental market is projected to remain stable for the next several years.
What are the Best Markets to Invest in Maryland
Baltimore’s economy, which is driven by healthcare, education, life sciences, and cyber security, is experiencing slow, yet steady growth. And with the University of Maryland and Johns Hopkins both having campuses within city limits, demand is consistent.
Frederick, which is the second largest city in Maryland, is home to more than 3,500 companies and has a well-designed infrastructure that makes it more livable. The city’s growing economy and booming job market make it a real estate market also worth exploring.
Rockville has unemployment rates below the national average and is experiencing job growth over 1%. Median home values are higher than the national average, and appreciation over the past 12 months sits just under 2%, which is expected to continue to rise.
HomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Maryland; and across the United States and calculate home values RENTestimate for every property in Maryland. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.