Of course, besides discussing the Baltimore real estate market trends, we will also talk about the local housing market in general and the opportunities it offers. What’s more, we will go over some of the neighborhoods with the best investment properties. Let’s get started! Baltimore real estate market trends, here we come!
#1 Investing in Baltimore Real Estate
Before getting deep into the Baltimore real estate market trends, it is always nice to get an overview of the local housing market and the potential opportunities it has to offer real estate investors. Investing in Baltimore real estate can be considered as a wisely chosen strategy and location, due to several reasons. Baltimore is a big city in the state of Maryland in the United States of America. The city has a well known, important seaport. As you can imagine, this is associated with the creation of many job positions. Additionally, the city is a university-home. Thus, it influences the need for long term accommodation and increases the demand for traditional rentals. Traditional rentals are successful Baltimore investment properties also due to the stable economic situation in the city. Interested to learn more about traditional investments? Make sure to read “Real Estate Investing: Traditional vs. Airbnb Investments.”
Airbnb Baltimore, however, is another strategy for making money in the city. This is due to the fact that the city offers many leisure activities for tourists. Hence, short-term rentals in the city score high on the return on investment scale. Airbnb Baltimore attracts travelers because of the interesting spots situated nearby. There are, for instance, the National Aquarium, Fort McHenry, the Maryland Zoo in Baltimore and more. As you can imagine, Airbnb Baltimore proves to be a great investment strategy. Curious to find out more about Airbnb? Make sure to read “Why Invest in Airbnb Properties.”
After discussing short-term rentals and traditional rentals when investing in Baltimore, we are one step closer towards exploring the Baltimore real estate market trends.
#2 Baltimore Real Estate Market Trends
Alright! The time has come to review the Baltimore real estate market trends at the beginning of 2018. The truth is that Baltimore real estate market trends demonstrate that the city is a great location for investments and making money in real estate right now.
Currently, the number of sales of Baltimore investment properties increases and it is likely to continue to do so, states Trulia. Moreover, the rental price keeps on increasing, which means that the return on investment of properties in the city increases as well. Besides the return on investment, the number of rentals also rises. Due to the stable economy, the local housing market will most likely continue to develop and progress in the near future. Therefore, the city proves to be one of the prosperous locations for investment properties.
However, it is important to keep in mind another one of the Baltimore real estate market trends. Along with the increasing potential profit investors might make, the property prices go higher as well. This is easily explained by the demand for buying/ renting out properties in Baltimore. Hence, if you want to invest in Baltimore- do so sooner rather than later. Interested to learn more about real estate investment in Baltimore? Make sure to read “How About Baltimore Real Estate Investment?”
#3 Baltimore Real Estate Market Trends: What Do the Numbers Say?
When discussing the current trends on the market, it is vital to explore the data associated with them. This way, you can get a better overview of the real estate situation currently happening in Baltimore. This will ease your decision of whether or not investing in the city is the right choice for you and your business.
Median Property Price: $220,885
Traditional Rental Income: $1,527
Traditional Cash on Cash Return: 3.91%
Traditional Cap Rate: 3.91%
Airbnb Rental Income: $851
Airbnb Cash on Cash Return: 1.73%
Airbnb Cap Rate: 1.73%
It is important to note that all the real estate metrics in this blog have been retrieved from Mashvisor’s investment property calculator. This tool can really save you time and help you in finding the most profitable locations and the best real investment properties. On this note: do not forget that you can find the best real estate investments in Baltimore here.
#4 Where to Invest in Baltimore
When exploring the trends in the housing market of Baltimore, it is also nice to reveal which are the most profitable neighborhoods in the city. That is why we have classified the top five areas to invest in Baltimore.
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Pleasant View Gardens
Median Property Price: $139,900
Traditional Rental Income: $1,813
Traditional Cash on Cash Return: 7.54%
Traditional Cap Rate: 7.54%
Airbnb Rental Income: $1,973
Airbnb Cash on Cash Return: 8.64%
Airbnb Cap Rate: 8.64%
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McElderry Park
Median Property Price: $149,900
Traditional Rental Income: $1,479
Traditional Cash on Cash Return: 7.04%
Traditional Cap Rate: 7.04%
Airbnb Rental Income: $1,408
Airbnb Cash on Cash Return: 6.32%
Airbnb Cap Rate: 6.32%
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Ellwood Park-Monument
Median Property Price: $85,000
Traditional Rental Income: $985
Traditional Cash on Cash Return: 5.14%
Traditional Cap Rate: 5.14%
Airbnb Rental Income: $952
Airbnb Cash on Cash Return: 4.95%
Airbnb Cap Rate: 4.95%
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Patterson Place
Median Property Price: $224,000
Traditional Rental Income: $1,520
Traditional Cash on Cash Return: 4.41%
Traditional Cap Rate: 4.41%
Airbnb Rental Income: $1,487
Airbnb Cash on Cash Return: 4.28%
Airbnb Cap Rate: 4.28%
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Patterson Park
Median Property Price: $229,900
Traditional Rental Income: $1,621
Traditional Cash on Cash Return: 3.92%
Traditional Cap Rate: 3.92%
Airbnb Rental Income: $1,523
Airbnb Cash on Cash Return: 3.52%
Airbnb Cap Rate: 3.52%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.