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Real Estate

Baltimore City a Top 20 Market for Rental Property Income + a ‘Millennials Magnet Market’

UrbanLand Company
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DC’s neighbor to the north is becoming a haven for rental investors. A RealtyTrac rental market analysis from around the US highlights Baltimore City as within the top 5 of 20 defined best markets for buying and running residential rental properties. Data is based on a number of factors in the report, and Baltimore City gets multiple mentions. The list was generated by looking at all US Counties with a population of 100,000 or more.

    • When looking at highest potential rental returns on investment overall, Baltimore City ranks #3 at 20.99% ROI. Other top 5 markets include Clayton County, GA within the Atlanta Metro area, Bibb County, GA within the Macon market, the city of Richmond in VA and Wayne County, MI, home of Detroit’s depressed Metro area.
    • The city of Baltimore is also named one of the 50 Best Markets to Rent to Millennials in the report. There’s been an 11% increase in the flow of Millennials moving to the city since 2007, and a large portion of them rent.

What’s a Millennial? It’s the lifestyle and demographic group that market researchers use to define the generation following Generation X and the Baby Boomers.  In a simple sense, it’s people that reached young adulthood around the year 2000 (birth dates between 1977 and 1992).

“Living urban is a huge trend among millennials and other lifestyle groups,” said Gerard DiRuggiero, Principal Broker of UrbanLand Company. “A good % of buyers and renters falling into the Millennials designation have stable employment and attractive future job prospects for the future. This group is attracted to congregated urban environments, a large group of them have left cars behind and seek more pedestrian living, and there’s one overriding similarity between all of them: landlords and apartment developers want them as their tenants!”  

What are some of the reasons for the high rental investment numbers for Baltimore City?

  • Apartments development in the city has been on a major increase since 2008, after investors rushed to capitalize ton the growing number of renters with an interest in urban living.
  • Development financing from banks and investor groups has been more readily available for apartment projects vs. office or retail or for for-sale condo projects.
  • Investors have been feasting on low home prices in the city and a flow of privately rented homes, older row homes and renovated small apartment projects are available for rent.
  • The city has historically low median income and high comparative rental housing price averages ($1,500+ per month).

The morale of the story: Baltimore is a city drawing lots of Millennials and new blood into its population, and its created quite a profitable market for rental property owners. If you’re an investor looking for your next rental property, now’s the time to take advantage of high Baltimore rents and low for-sale home prices. If you’re a resident and renting, you may want to look hard at your landlord, your current apartment or rental home and how you can save money to buy a home of your own!

If you are a renter and have concerns about where to get your Down Payment, check out the Maryland Mortgage Program. They provide Down Payment assistance loans of up to $8,500, and additional incentives allow up to $13,000 or more to be borrowed. Loans are interest-free with easy repayment terms.

The full report with in-depth explanations is available here.


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