Decoding Baltimore's Real Estate Market Trends

Understanding Baltimore's Real Estate Landscape

Baltimore real estate market trends show a market in transition, with moderate price growth amid shifting supply and demand dynamics. If you're looking to understand the current state of Baltimore's housing market, here's what you need to know:

The Baltimore housing market presents a unique opportunity in 2024, with home values that remain significantly more affordable than the national average while still showing steady appreciation. The median sale price of $220,000 is approximately 51% lower than the national average, making Baltimore an attractive option for both homebuyers and investors.

Despite rising mortgage rates hovering around 7%, demand remains resilient in Baltimore's most desirable neighborhoods. However, the market is showing signs of cooling compared to the frenzied pace of recent years, with homes spending about 32 days on market before selling – a slight increase from 2023.

For commercial real estate stakeholders, Baltimore offers promising opportunities across various sectors. The industrial market remains tight with vacancy at 6.5%, while the office market has stabilized following negative absorption during the pandemic years, posting modest gains in 2023-2024.

What makes Baltimore particularly interesting is its neighborhood diversity. From the luxury waterfront properties of Harbor East (where prices have increased 17% since 2012) to emerging areas with strong revitalization projects, the city offers entry points at various price points for different investment strategies.

Must-know Baltimore real estate market trends terms:- commercial real estate consulting- commercial real estate market analysis- commercial real estate trends

Current State of Baltimore's Real Estate Market Trends

The Baltimore real estate market trends of 2024 paint a picture of a city in transition—think of it as finally catching its breath after a sprint. Home prices are up just a touch, with the median sale price at $220,000—a modest 2.3% boost from last year. This slow and steady pace is a welcome change for buyers and sellers alike, especially after the market rollercoaster of the past decade.

A big headline for this year is the sharp jump in inventory. In April 2025, Baltimore had 2,913 homes for sale, which is a whopping 52% more than in March. More homes on the market signal that sellers are regaining confidence—plus, buyers have more choices. It’s a shift that could help cool things off after some intense competition.

Still, the market is holding onto its competitive edge. On average, homes are selling for 102.7% of their list price—so yes, bidding wars haven’t disappeared entirely. But there are clear signs of cooling: over 33% of homes saw price drops, up 6.5 percentage points from last year. That’s a strong hint that sellers need to be realistic, even if they secretly hope for a bidding frenzy.

Local experts agree, Baltimore is finding its balance. “The days of homes flying off the shelf in hours are fading,” says one seasoned agent. “But homes in popular neighborhoods, if priced right, still move quickly.” On average, homes now linger for 32 days before selling, up just a few days from last year. This gives buyers a bit more breathing room to think things through, rather than making snap decisions.

At Brexton Commercial, we see this as a healthy sign. A balanced market opens the door for both buyers and sellers to negotiate smartly, especially with the right data and strategy.

Price Dynamics in Baltimore's Housing Market

When it comes to housing prices, Baltimore is all about value and potential. The median sale price of $220,000 makes the city far more affordable than other big East Coast hubs—about 51% lower than the national average. That’s a big draw for both first-time buyers and savvy investors looking for hidden gems.

Price growth is gentle and steady. The year-over-year increase is just 2.3%, which suggests the market is growing at a healthy, sustainable rate—no signs of a bubble here.

A closer look at the numbers reveals more good news for buyers: the median price per square foot is $158, actually down by 1.3% since last year. In other words, your dollar stretches a bit further in 2024.

Baltimore isn’t a one-size-fits-all market. Neighborhoods tell their own stories:- Harbor East has seen prices jump 17% since 2012, especially for luxury condos.- Canton properties are listed around $338,000.- Locust Point averages about $420,572.- In the suburbs, places like Clarksville ($657,750) and Ellicott City ($520,000) fetch much higher prices.

What we’re witnessing is price normalization after the wild, pandemic-era surges. Prices aren’t falling, but the rocket-fueled appreciation has slowed. The result? A more stable, predictable market.

For investors, this is an appealing combo: slow and steady price growth mixed with strong rental yields (we’ll dig into that later). That sort of value is getting hard to find in major East Coast cities.

Supply and Demand Factors Shaping the Market

Several key supply and demand forces are shaping the Baltimore real estate market trends right now.

On the supply side, inventory is finally rising. There were 2,913 homes for sale in April 2025—up 52% from just a month earlier. More sellers are testing the waters, and new listings jumped nearly 15% in February alone. Construction is booming in some sectors, too: industrial projects have 3.6 million square feet underway, even as office development stays slow. Still, at just 1.39 months of supply, inventory remains well below the six months that usually signals a balanced market.

On the demand side, higher mortgage rates—hovering near 7%—are giving some buyers pause. Pending sales have dipped 6.3% year-over-year, but in hot neighborhoods, homes still go under contract in a blazing-fast 15 days. Nearly 40% of homes are selling for more than list price, and the robust sale-to-list ratio shows that buyers are willing to pay up for the right place.

This tug-of-war between rising supply and resilient demand is what we at Brexton Commercial call a “transitional market.” We’re moving away from the extreme seller’s market of the past few years, but haven’t quite reached a fully balanced state.

Mortgage rates are a big piece of the puzzle. As one market watcher put it, “Many buyers are waiting for rates to drop before they act.” This waiting game has let inventory build up, giving buyers more options.

The local economy also plays a key role. Job growth in Baltimore has been solid, with nearly 54,000 jobs added between May 2021 and May 2022. This steady employment growth supports housing demand—even with higher financing costs.

In short, today’s Baltimore real estate market trends reflect a city finding its groove: more affordable than most, with growing opportunities for buyers, sellers, and investors who are ready to move smartly and with confidence.

Neighborhood Analysis: Where Baltimore's Market is Hottest

When it comes to Baltimore real estate market trends, no two neighborhoods are quite alike. In fact, the city’s property market can feel like a patchwork quilt—with each area offering its own story, price point, and personality. If you’re shopping for a home or looking to invest, understanding these local differences is key.

Baltimore’s neighborhoods range from glitzy waterfronts to lively arts districts and affordable communities just beginning to catch the public’s eye. This diversity means there’s truly something (and somewhere) for everyone. Whether you’re after luxury living or a smart entry point for future growth, Baltimore has options.

What drives these varying price tags and levels of demand? Walkability is a big one—people love being close to shops, cafes, and the city’s famous Inner Harbor. Quality schools and quick commutes to employers like Johns Hopkins University also add value. And let’s not forget the city’s transportation network: easy access to light rail, I-83, and I-95 can boost a neighborhood’s appeal (and home prices).

At Brexton Commercial, we’ve seen first-hand that neighborhoods with great walkability scores and waterfront amenities draw the most attention—and often the highest offers. But don’t overlook transitional areas. Some of the fastest price appreciation is happening where revitalization projects are in full swing.

Premium Neighborhoods Leading Baltimore's Market

If you’re looking for the cream of the crop, start with Harbor East. This neighborhood has become a symbol of upscale Baltimore living, where luxury condos and sweeping waterfront views are the norm. Since 2012, sales prices here have jumped 17%, and it’s not uncommon for homes to sell at or above the asking price. Proximity to downtown and all the best restaurants and shops only adds to the appeal.

Not far behind is Fells Point—a neighborhood that oozes historic charm. Picture cobblestone streets, 18th-century architecture, and a nightlife scene that buzzes year-round. Homes in Fells Point are snapped up quickly, often with multiple offers (and sometimes a bidding war or two).

Canton is another sought-after spot. With an average listing price of $338,000, Canton’s waterfront parks, hip eateries, and easy commute options make it a magnet for young professionals. The competition here can get fierce, with buyers eager to close above the list price to secure their place.

Then there’s Locust Point, where the average home price sits at $420,572. Nestled on a peninsula with water views on three sides, Locust Point also offers proximity to Fort McHenry and the Under Armour headquarters—perfect for history buffs and busy professionals alike.

And if a suburban vibe is more your speed, places like Clarksville (median value $657,750) and Ellicott City ($520,000) stand out. These areas offer excellent schools, more space, and easy access to Baltimore’s job centers—offering the best of both worlds.

Emerging Areas with Growth Potential

Of course, not everyone wants to jump into the deep end of the price pool. Many savvy buyers and investors are looking toward neighborhoods with strong growth potential—and a more affordable starting point.

Park Heights is one to watch. With a city-backed revitalization plan rolling out new housing, commercial spaces, and public amenities, this area is ready for a comeback. Prices remain accessible, but the outlook is promising as new investment takes root.

The Station North Arts District is another emerging gem. This creative hub is drawing artists, students, and entrepreneurs, changing old buildings into dynamic live-work spaces. Its location near Penn Station, MICA, and Johns Hopkins makes it especially attractive for renters and young professionals.

Don’t sleep on the West Side of Downtown Baltimore either. Once a busy retail mecca, this district is now seeing a wave of investment and redevelopment. Historic buildings are getting new life as mixed-use spaces—creating opportunities both for residents and businesses.

What makes these up-and-coming neighborhoods so interesting is their relative affordability compared to the established hot spots. While condos in Harbor East might go for $400 per square foot, you can often find opportunities in emerging areas for half that cost. As revitalization continues, these entry points could see significant upside.

At Brexton Commercial, we help clients spot these rising stars by looking beyond the present. We dig into planned infrastructure, development pipelines, and demographic shifts to find the neighborhoods where tomorrow’s growth is likely to take root.

Whether you’re drawn to the city’s established luxury enclaves or excited by the potential in revitalizing communities, Baltimore’s diverse neighborhoods offer plenty of options. With the right local insight, you can find the perfect match for your goals—and maybe even get in before the rest of the market catches on.

Investment Outlook for Baltimore Real Estate

If you’re sizing up the Baltimore real estate market trends as an investor, you’ll find plenty of reasons to be optimistic in 2024. Baltimore offers that rare mix of affordability, rental demand, and steady appreciation—without the sticker shock of other East Coast cities.

Affordability stands out as one of Baltimore’s biggest strengths. With a median home price around $220,000—about 51% below the national average—entry points are accessible for both new and seasoned investors. This lower price tag, paired with solid rental rates, can translate into a much healthier cash flow than what you’d find in pricier markets.

Yields in Baltimore are attractive for those hunting value. The math is straightforward: buy low, rent at steady rates, and enjoy a cushion between your costs and your income. Rental returns in the most desirable neighborhoods can be especially strong, as we'll explore in more detail below.

Adding to the city's appeal is a diverse local economy anchored by renowned institutions like Johns Hopkins University, Under Armour, and government agencies. This economic base supports stable employment—and, as a result, consistent demand for both rentals and commercial space.

Geography doesn’t hurt either. Baltimore’s location—tucked between Washington D.C. and Philadelphia—means residents have access to an even larger job pool, all within a manageable commute.

Let’s not forget about revitalization. Big projects in places like Harbor Place, Camden Yards, and Station North are making these neighborhoods more inviting and pushing up values. For investors, this means the chance to catch neighborhoods on the upswing.

And for folks interested in commercial real estate? Baltimore’s market is full of possibilities. The industrial sector is tight with a 6.5% vacancy rate, while the office market, after a bumpy few years, is beginning to stabilize.

As one local advisor put it, “Baltimore offers what many overheated markets can’t—a sweet spot of affordability, yield, and room for appreciation.” Investors here can choose their trip, whether that’s maximizing cash flow, adding value through renovations, or holding for long-term growth.

Rental Market Analysis and Investment Returns

Baltimore’s rental market remains a bright spot for investors who want steady, reliable returns. The median rent hovers at $1,525 as of February 2024, making rental properties cash-positive for many owners—especially considering the city’s affordable home prices.

What keeps the rental demand strong? Several key factors:

• Baltimore’s many universities, including Johns Hopkins and Loyola, draw a steady stream of students looking for off-campus housing.
• Young professionals flock to the city for its urban vibe and affordable rents—especially compared to D.C. or Philly.
• The city’s workforce spans healthcare, education, government, and tech, ensuring a broad tenant pool.

Vacancy rates bounce around but remain healthy. In early 2021, the vacancy rate was 5.8%, reflecting a market where demand and supply are reasonably balanced. Rents themselves run the gamut—from basic apartments under $1,000 to luxury homes well north of $9,000 a month. Three-bedroom units, a popular choice for families and roommates, fetch a median rent of $1,700.

In terms of returns, Baltimore delivers where it counts. Many investors see gross yields of 8–12% on well-located properties, with net yields typically landing in the 5–8% range after expenses. That’s hard to beat in most major coastal cities.

Student housing is an especially attractive niche—properties close to Johns Hopkins or other campuses enjoy strong, stable demand, premium rents, and low vacancy rates. For investors, these areas can provide peace of mind and predictable returns.

Commercial Real Estate Opportunities in Baltimore

On the commercial side, Baltimore’s real estate market offers both stability and new prospects. The story does shift depending on the property type, so let’s take a closer look.

Office space in Baltimore is starting to find its footing again after pandemic disruptions. The market saw positive absorption in 2023 and early 2024, though the start of 2025 brought a brief setback. Vacancy sits at 15.7%, which is a touch higher than average, but with new construction limited, the market should have time to heal and rebalance.

Industrial properties are currently the stars of the show. Even with a bit of softening in early 2025, vacancy remains low at 6.5%—much tighter than the 8.3% long-term average. Rents are trending up, and there’s robust development in the pipeline, especially near transportation hubs like the Port of Baltimore. Warehousing and logistics spaces are in especially high demand.

Retail centers—especially those anchored by grocery stores or other everyday needs—are holding up well. Experiential retail, like what you’ll find in Harbor East or Fells Point, is thriving. Investors also see value in repositioning or adaptively reusing older retail properties.

Mixed-use developments—combining residential, retail, and sometimes office space—are gaining popularity, particularly in neighborhoods seeing new investment. These projects often benefit from city incentives and can add vibrancy to transitioning areas.

From an investor’s perspective, Baltimore’s commercial market comes with several perks: lower prices than D.C. or Philly, strong tenant interest in certain sectors, and the chance to add value in up-and-coming neighborhoods. Public-private partnerships are also opening doors for creative projects.

At Brexton Commercial, we have our finger on the pulse of Baltimore real estate market trends, helping clients find the right fit for their goals—whether that means a multi-family rental, a logistics warehouse, or a storefront in a revitalizing neighborhood. Our hands-on, personalized approach ensures you get expert insight and custom guidance at every step.

Risk Factors and Challenges in Baltimore's Market

As promising as the Baltimore real estate market trends seem, it’s important to approach any investment or home purchase with open eyes. Baltimore is a city of opportunity—but it’s also a city with some real risks and challenges that you’ll want to understand before jumping in.

Let’s start with market volatility. Baltimore has a bit of a reputation for price swings. Compared to other East Coast cities, prices here can shift quickly, which can be a blessing or a curse depending on your timing and neighborhood choice. This means there’s real potential for both gains and losses—so doing your homework is key.

Another reality check comes with property taxes. Baltimore City’s rate sits at a hefty 2.248%, much higher than surrounding counties. For investors, this can have a direct impact on cash flow and returns. For homeowners, it can make monthly payments higher than you might expect for the same home value in a nearby suburb.

Neighborhood differences are another thing you can’t ignore. One street can have properties that are rising fast, while three blocks away, homes might linger on the market or even sit vacant. These micro-market differences are what make Baltimore unique—but they also mean you need local know-how, not just a city-wide average.

Many of Baltimore’s homes are charming, historic, and, let’s be honest, old. A good chunk of the housing stock was built before 1950. That historic character is great—but older homes can come with higher maintenance costs and sometimes require major renovations. Inspections and realistic repair budgets aren’t optional—they’re essential.

Safety perceptions matter, too. While crime rates have fallen in many parts of the city, old reputations linger. In some neighborhoods, this can affect both resale values and how easy it is to rent or sell a property.

At Brexton Commercial, we always recommend thorough due diligence. Knowing the challenges helps you plan smart—whether you’re buying your first home or adding to your investment portfolio.

Environmental and Climate Considerations

Environmental risks are more important than ever in today’s real estate world, and Baltimore is no exception. According to Risk Factor™, several types of environmental threats play a role here.

Flooding is a major one—about 15% of Baltimore properties are at serious risk of flood damage over the next 30 years. This is especially true in waterfront neighborhoods and places with older stormwater systems. Extra flood insurance and the risk of property damage should be factored into your investment math if you’re eyeing these locations.

Severe wind is another biggie. A staggering 97% of Baltimore properties face significant wind risk, mostly because of the city’s coastal location. Hurricanes and nor’easters aren’t strangers here, and the aftermath can mean costly repairs. Good insurance and strong building standards are your best friends.

Heat risk is climbing, too. About 89% of properties in the city face severe heat exposure. The “urban heat island” effect makes some neighborhoods even hotter during summer months, raising utility bills and, in rare cases, making homes less comfortable.

Although less widespread, wildfire risk touches about 10% of properties—mainly those near parks or undeveloped land. It’s not California, but it’s something to keep in mind.

These environmental factors are starting to impact both property values and insurance premiums. Homes in lower-risk locations are now seen as more desirable—and that can mean higher prices or rents. For commercial properties, environmental resilience is even more crucial. Companies with ESG goals want spaces that are prepared for storms, flooding, and heat, and they’re often willing to pay more for that peace of mind.

We make it part of our process at Brexton Commercial to help clients gauge these risks, so you can choose properties that stand the test of time (and weather).

Economic and Demographic Challenges

Baltimore’s economy and population trends are a mixed bag, shaping the Baltimore real estate market trends in complicated ways.

Population decline is one of the city’s longest-running challenges. Baltimore peaked at nearly 950,000 residents in 1950, but by 2020 the number had dropped to about 585,000. While some neighborhoods are gaining residents, others are losing them. This slow churn means city-wide growth in home values is more gradual, but certain revitalizing areas are bucking the trend.

Income levels add another layer. While median incomes have risen, they’re still below the national average. This limits what many buyers can afford, especially as mortgage rates have climbed. It also pressures investors to keep rents reasonable to maintain occupancy.

On the positive side, Baltimore’s job market is strong and diverse. From May 2021 to May 2022, the city added nearly 54,000 jobs—a healthy 3.98% growth. Unemployment rates are dropping, and major employers in education, healthcare, and government help keep the local economy stable.

Migration patterns since the pandemic are also shaking things up. Some urban neighborhoods are seeing new interest, especially from young professionals, while suburban areas around Baltimore are drawing families who want more space. This shift leads to pockets of strong price appreciation—and others where demand is slower.

Higher education institutions are one of Baltimore’s secret weapons. Johns Hopkins University, University of Maryland, and others bring stability and constant rental demand to neighborhoods close by. These areas often outperform the broader market, both for home values and rental rates.

Finally, the city’s arts scene, historic sites, and cultural amenities add a unique flavor that appeals to both buyers and renters. For some, these perks outweigh the challenges, especially in neighborhoods near museums, theaters, and waterfront parks.

Bottom line? Baltimore’s a city in transition. Understanding the economic, demographic, and environmental factors at play helps you make smarter choices—whether you’re settling in for the long haul or looking for your next great investment. At Brexton Commercial, we’re here to guide you through the ups and downs, so you can take on Baltimore’s real estate market with confidence.

Future Forecast: Where Baltimore's Real Estate Market is Heading

Looking ahead, the Baltimore real estate market trends point toward a period of calm and steady growth through 2025 and 2026. While the past decade has delivered its fair share of ups and downs, the near future looks more like a gentle ride than a rollercoaster—and for many buyers and investors, that’s a welcome change.

Several key forces are set to shape Baltimore’s real estate landscape over the next couple of years. Mortgage rates remain front and center. If rates finally edge down from their current 7% levels, we could see buyers who’ve been waiting on the sidelines jump back in, pushing up demand. On the flip side, if rates stay stubbornly high, we’ll likely continue to see the moderate pace and cautious optimism that’s defined 2024 so far.

The city’s economic backbone—bolstered by its strong education, healthcare, and government sectors—should keep Baltimore relatively insulated from sharp downturns. Steady job growth is always a plus for real estate demand. But as always, any sign of economic slowing will be something to watch.

Don’t forget about new construction and revitalization projects. Developments like the Harborplace overhaul and continued work in Station North are adding new housing and boosting the vibrancy of key neighborhoods. These projects not only expand supply but also make certain areas more attractive for both living and investing.

Demographics will also play their part. Baltimore’s ability to attract young professionals, families, and empty nesters looking for urban living has already breathed new life into many neighborhoods. Meanwhile, suburban communities are still benefiting from buyers taking advantage of remote work flexibility.

Here at Brexton Commercial, our take is that Baltimore will reward buyers and investors who do their homework. Broad market moves are fading, while neighborhood-level shifts are where the real action—and opportunity—lie.

Short-Term Market Projections (2024-2025)

Zooming in on the next 12-18 months, most signs point to a continued shift toward a balanced market. Home prices are likely to see just a nudge upward, with forecasts calling for appreciation in the range of 0.3% to 0.7% in early 2025. That’s a far cry from the wild double-digit run-ups we saw in the recent past, but it’s a more sustainable path for everyone.

One big story is inventory growth. After a 52% month-over-month jump in April 2025, buyers finally have more options to choose from. This means less of the bidding-war chaos and more room for thoughtful decisions.

Still, buyer mentality is in flux. Many are cautious because of high mortgage rates, playing the waiting game to see if better terms might be around the corner. Of course, life moves on—people who need to move for work, family, or other reasons will continue to drive steady baseline demand.

Sellers, on the other hand, are adjusting to a new reality. Homes are taking a bit longer to sell, and negotiations are more balanced. The rare frenzy of offers above asking within hours is now mostly reserved for the city’s hottest neighborhoods and standout properties.

Neighborhoods will continue to tell their own stories. Premium areas like Harbor East and Canton are expected to remain competitive, while emerging spots may see buyers bargain hunting or waiting for just the right deal. And as always, keep an eye on mortgage rates—a drop of even half a percent could kick-start another rush of demand.

The next year or so may be the perfect time for patient, prepared buyers. As one market analyst puts it, “Balanced conditions create real opportunities for those who take their time and know what they want.”

Long-Term Outlook for Baltimore Real Estate Market Trends

Peering further into 2026 and beyond, Baltimore’s outlook depends on a handful of core drivers. Urban development initiatives will continue to be front and center. Projects like the Harborplace redevelopment and the change of Port Covington into Baltimore Peninsula promise to remake not just skylines, but the very feel of these neighborhoods. Expect new homes, offices, and retail, plus ripple effects in surrounding areas.

Infrastructure projects—like potential upgrades to public transit—stand to make certain neighborhoods even more desirable. Improved access is a time-tested recipe for appreciation, especially in a city with Baltimore’s rich patchwork of communities.

Demographics remain key. Whether Baltimore can attract and keep young professionals, families, and downsizers will make a real difference. Areas offering walkability, amenities, and a vibrant lifestyle are likely to outperform, while neighborhoods slow to adapt may lag behind.

Housing policy also deserves attention. Expanding affordable housing and modernizing the city’s older housing stock could shift both supply and demand dynamics. Watch for new proposals and incentives that could change the playing field.

And as climate conversations get louder, climate resilience is fast becoming a factor in property value. Buyers and tenants alike are starting to prioritize buildings and neighborhoods with lower environmental risk and features that help weather the literal storms.

In short, the Baltimore real estate market trends of the future will be all about specificity—knowing which neighborhoods are primed for growth, which projects are coming online, and which risks are worth taking. The market is likely to become even more segmented: areas with revitalization, amenities, and positive demographics will pull ahead, while others may continue to face challenges.

At Brexton Commercial, we believe that long-term success means:

• Focusing on detailed, neighborhood-level analysis
• Staying on top of development and infrastructure trends
• Weighing climate resilience in every decision
• Timing moves carefully in response to interest rate shifts and broader market conditions

For those with patience, local insight, and a willingness to dig into the details, Baltimore offers real potential—especially compared to pricier East Coast markets. The next few years are about smart, strategic moves, not chasing the crowd.

Frequently Asked Questions about Baltimore Real Estate Market Trends

Is Baltimore Currently a Buyer's or Seller's Market?

In 2024, the Baltimore real estate market trends are telling a new story—one of transition. After years of being firmly in the seller’s corner, the market is now shifting toward a more balanced playing field. You’ll still find homes selling above the asking price (the sale-to-list price ratio is a healthy 102.7%), but the winds are changing. About a third of listings are seeing price drops, and inventory has jumped by 52% month-over-month in April 2025. That means more choices and negotiating room for buyers.

Homes are lingering a little longer too, averaging 32 days on the market (up just a bit from last year). In popular neighborhoods like Harbor East and Canton, sellers still have the upper hand, but in other areas, buyers are gaining traction.

So, what does this mean for you? If you’re a buyer, you can breathe a bit easier—there’s less pressure to rush, and you might be able to negotiate better terms, especially if a property has been listed for a while. For sellers, it’s time for realistic pricing and a little patience! Preparation and local know-how are more important than ever.

Here at Brexton Commercial, we always remind our clients: success in this changing market isn’t about following headlines—it’s about strategy, timing, and understanding the unique dynamics of each neighborhood.

What Impact Are Mortgage Rates Having on Baltimore's Housing Market?

Mortgage rates have become the main character in Baltimore’s housing story this year. With rates hovering around 7% (a far cry from the “good old days” of sub-3%), both buyers and sellers are feeling the effects.

Higher rates are definitely squeezing affordability. For many buyers, the math just doesn’t stretch as far—a $300,000 pre-approval at 3% might drop to $225,000 at today’s rates. Unsurprisingly, this has led to quite a bit of waiting on the sidelines as buyers hope for rates to drop.

But sellers aren’t immune either. Many homeowners who locked in low rates are reluctant to give them up, which means fewer are listing their homes unless they really need to move. This “rate lock” phenomenon is keeping some inventory off the market, even as total listings are rising.

Investors are also recalculating. Higher borrowing costs mean deals have to be extra solid to make sense—cap rates and cash flows need to be stronger to justify new purchases. All this has taken a bit of the fizz out of Baltimore’s market, with homes sitting a little longer (average days on market is now 32).

Still, there’s a silver lining. Baltimore’s prices are more affordable than nearby cities like D.C. or Philly, so even at 7%, homeownership can still pencil out for many. If (or when) rates drop by even half a percentage point, expect demand—and prices—to heat up again. Of course, if rates climb further, the slow-but-steady pace we’re seeing now is likely to stick around.

What Are the Best Areas to Invest in Baltimore Real Estate?

There’s no one-size-fits-all answer here, and that’s what makes Baltimore exciting. The best place to invest depends on your goals—are you chasing steady rental income, looking for long-term appreciation, or hoping for the best of both worlds?

If reliable cash flow is your mantra, neighborhoods like Hampden and Charles Village are worth a closer look. Hampden’s vibrant, quirky vibe attracts young professionals, while Charles Village draws steady demand from Johns Hopkins’ students and staff. Pigtown (also known as Washington Village) is another solid pick, offering affordability and improving amenities close to downtown.

For those dreaming of big appreciation, keep your eye on Station North Arts District (where creative energy and revitalization are fueling growth), Highlandtown (which is seeing renewed interest from young professionals), and West Baltimore’s Upton neighborhood, where historic properties present real upside as investment and revitalization flow in.

If you want a blend of rental demand and price growth, Canton continues to shine, though entry prices are higher. Locust Point delivers stability and water views, while Brewers Hill’s industrial conversions offer unique spaces that attract both renters and buyers.

On the commercial side, industrial properties near the Port of Baltimore are in demand thanks to tight vacancy rates. Mixed-use projects in emerging neighborhoods, and necessity-anchored retail centers, are also providing steady returns even when the economy wobbles.

When weighing your options, don’t forget the basics: look for proximity to major employers, planned revitalization or infrastructure projects, historical price and rent trends, and always factor in property condition and potential environmental risks.

At Brexton Commercial, our team is passionate about helping investors find hidden gems. We offer hands-on, personalized analysis so you can spot value—sometimes where no one else is looking. For more on how we can help you steer Baltimore real estate market trends, check out our services or get in touch for a custom consultation.

Conclusion

The Baltimore real estate market trends in 2024 show a city at a crossroads—embracing change, yet holding onto its many strengths. With a median home price of $220,000 (that’s about 51% below the national average), Baltimore remains a standout for both buyers and investors searching for value. Homes linger a bit longer on the market—an average of 32 days—while inventory has swelled, giving everyone more breathing room to make thoughtful decisions.

What truly makes Baltimore special is its neighborhood diversity. If you dream of luxury waterfront living, areas like Harbor East are thriving. Prefer something with more upside? Revitalizing communities such as Station North and Park Heights are brimming with potential. No matter your risk tolerance or investment goals, Baltimore’s market offers an entry point.

Looking to the future, we expect the market to continue its steady, moderate path. Dramatic ups and downs seem unlikely. Mortgage rates will keep playing a starring role—if rates dip, buyer demand could quickly ramp up, nudging prices higher. If they stay put, expect the pace to remain measured.

Commercial real estate is also seeing a shift. Industrial properties are still hot, with low vacancy rates around 6.5%. Office space, after a rocky pandemic period, has started to find its footing. That means opportunity, whether you’re considering distribution hubs, retail spaces, or mixed-use developments.

At Brexton Commercial, we know success here means digging deeper than citywide trends. It’s about:

• Understanding neighborhoods block by block
• Timing your move based on interest rates and local market cycles
• Keeping an eye on environmental and climate resilience
• Paying attention to development and infrastructure projects that can boost value

Our boutique, hands-on approach is built around you. Whether you want help with a commercial investment, need advice on development opportunities, or just want more insight into the latest trends, our team is here to guide you through every step of Baltimore’s ever-changing real estate market.

Want to learn more? Explore our commercial real estate market analysis or connect with us directly to talk through your goals. At Brexton Commercial, we’re committed to helping you turn Baltimore’s market trends into your next success story.