range. Several neighborhoods have listing prices under $10,000, while more affluent areas such as Fells Point and Canton Park have prices between $500K and $2M+. The median home price in the Baltimore Metro area was $282,500 as of November 2019. This is a moderate increase of 1.9 percent over November 2018 of $277,200. Home price appreciation for the metro is forecasted to remain flat for 2020, while rent prices may rise a moderate two to four percent. After losing over 20 percent of its value in the last housing recession, the metro area has nearly recovered the losses sustained and is approximately 5.5 percent below its peak in 2007. Investors may see significantly lower housing prices in the Baltimore area versus other major markets. While there are attractive deals in some of the neighborhoods, prudent investors must do heavy due diligence on repair costs to remediate old building materials of lead paint, lead pipes and asbestos. Also, assuming a successful renovation project, investors should be sure to analyze potential After Repair Value (ARV) to ensure the project will be profitable.
As of November 2019, the Baltimore metro area average three-bedroom single-family rental (SFR) home was $1,765/month. The metro area one-year rental price change for a three-bedroom detached SFR was 4.87 percent, an $82 increase but slightly below the 5.5 percent year-over-year national average increase. Rental prices in the metro area have continued a steady pace, increasing 15.6 percent in the last five years. Baltimore City average rents come in at $1,450/ month, about 20 percent lower than the MSA average, yet up 3.35 percent from November 2018. Since 2014, the last five years have seen rents appreciate 10.5 percent in the city. The Baltimore MSA rent-to-income ratio of 27.1 percent is lower than the national average of 32 percent. This is a positive sign for investors that rental prices can appreciate further, while maintaining affordability. Neighborhoods in Baltimore’s Howard County and Anne Arundel County round out the south end of the MSA and claim the highest rents in the metro at roughly $2,400/month for a three-bedroom single
BALTIMORE NOVEMBER 2019 RENT PRICES - 3BD SFR
SFR2019 3BD AVG PRICE 1,200 2,400
92 | think realty magazine :: march 2020
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