Since you clicked on this article, the big question you want answered is if Baltimore is a good place to invest in real estate in 2020? The answer is…it depends. Every investor has different goals when it comes to choosing a place to invest, which means Baltimore may or may not be a great opportunity for your next investment.
To help you get closer to a decision, we’ll lay out several factors that make Baltimore appealing to many investors. These include affordability, a prime location near several major metros and the opportunity to generate rental income at about 1% of the purchase price (if you invest in the right neighborhoods!).
5 Factors That Make Baltimore a Good Place To Invest
When looking at the best real estate markets, you’ll often find three factors in common. Job growth, population growth and affordability. Baltimore has all three of these factors, and more.
1 – Job Growth
Between January 2019 and 2020, there were 25,500 jobs created in the Baltimore metropolitan area, which is a growth rate of 1.79%. This is almost 22% higher than the national average.
Although the world has changed pretty drastically over the last few months due to COVID-19, Baltimore still has a strong economic base with many top employers still operating (and hiring!).
These employers include:
- Amazon – Amazon’s headquarters is just under an hour from Baltimore. They also just purchased an additional $90 million warehouse space in the area. And, according to the property team we work with in the area, the company is also actively hiring!
- Under Armour – Under Armour was founded and is headquartered in Baltimore. They are also in the middle of a $5 billion development near Port Covington.
- University of Maryland Medical Center
- Johns Hopkins University
- Marriott Hotels – Marriott is also headquartered in Baltimore!
2 – Population Growth
Another reason Baltimore is a good place to invest in real estate is due to population growth. Since 2010 the population of the Baltimore metropolitan area has grown by 3.11%. While this is about half the rate of national average that was just over 6%, it’s still upward growth. And this is generally a promising sign for a real estate market, especially when its coupled with strong job growth and affordability.
3 – Affordability
Compared to other nearby metros, like Washington DC and New York, Baltimore is still very affordable. In the neighborhoods where RealWealth members invest, the average 3 bedroom home price is between $145,000 and $190,000. These homes typically rent for $1,250 to $1,900, which is just about 1% of the purchase price. This is a pretty solid price to rent ratio for investment property.
The team we work with in Baltimore also specializes in Section 8, which is a great option for many investors. Here are a few benefits to note:
- 50-100% of the voucher holder’s rent is paid by the government
- Because these tenants can lose their voucher there is often less delinquency, which means fewer evictions and better profit margins.
- There’s also a strong demand for housing where vouchers are accepted. The team we work with has a 5 year waiting list for the voucher program! This is another great sign for your bottom line.
To learn more about investing in Baltimore, become a member of RealWealth. It’s 100% free to be a member, and once you join you’ll be able to connect with the team we work with in Baltimore.
4 – Prime Location
Baltimore is conveniently located near several major metropolitan areas, each with an abundance of job opportunities. Many people who live in Baltimore commute to Washington DC. They choose to live in Baltimore because it’s more affordable.
Baltimore is also less than 2 hours from Philadelphia and just 3 hours from New York City.
Check out our map below to see what I mean:
5 – Major Transportation Hub
Baltimore is also located near a major transportation hub, the Port of Baltimore. This is one of the busiest ports on the East Coast, which provides Baltimore residents with even more job opportunities.
This is just a quick overview of what makes Baltimore a good place to invest in real estate. For more information, become a member of RealWealth to watch webinars with the Property Team we work with in Baltimore. Also keep an eye out for our comprehensive Baltimore real estate market page, which should be live in the next week or two.
In the meantime, you can check out the other real estate markets where RealWealth members invest here: https://www.realwealthnetwork.com/markets