Baltimore Housing Market Analysis & Forecast (2024 – 2025)

The Baltimore housing market stands out as one of the most dynamic and multifaceted real estate landscapes on the East Coast.

With its rich historical heritage, diverse neighborhoods, and strategic proximity to Washington, D.C., Baltimore continues to attract homebuyers, investors, and real estate professionals seeking both opportunity and value.

As we move toward 2025, several key trends and economic factors are set to redefine the city’s real estate trajectory, including shifts in buyer behavior, urban development projects, and evolving market dynamics.

This in-depth analysis dives into the current state of the Baltimore housing market, uncovers essential statistics, and offers forward-looking insights to help you navigate the opportunities and challenges that lie ahead in this ever-evolving urban landscape.

Overview of the Baltimore Housing Market

In 2024, Baltimore’s housing market demonstrates a blend of resilience and adaptation, driven by strong demand and ongoing supply challenges making it one of the best places to invest in real estate in the US.

As the city recovers from the economic impacts of the COVID-19 pandemic, real estate trends have begun to stabilize.

A closer examination of key metrics such as median home prices, inventory levels, and days on market offers insight into the current dynamics shaping Baltimore’s real estate landscape.

Median Home Prices

As of December 2024, the Baltimore housing market has experienced a 2.3% increase in home prices compared to the same period last year, with the median home price now at $227,000.

This rise in home values highlights the ongoing demand for properties across the city. Buyers are increasingly competing for limited inventory, particularly in desirable neighborhoods, which continues to drive prices upward.

Inventory Levels

Inventory levels in Baltimore have tightened significantly, with the number of active listings currently around 2,500 homes. This figure represents a nearly 10% decrease compared to the same period last year.

The sharp decline in available homes for sale has intensified competition among buyers, especially in high-demand areas like Federal Hill and Canton.

Many homeowners are holding onto their properties longer, opting not to sell due to rising interest rates and the uncertainty of finding a new home in such a competitive market.

Consequently, the limited supply of homes on the market has become a critical factor in the ongoing price increases.

Find Exclusive Properties

20+ Qualified Consultants ready to help

Express Interest

Days on Market

As of Decemberr 2024, the Baltimore housing market continues to exhibit robust activity, with homes selling at a brisk pace.

• Median Days on Market (DOM): Properties are typically on the market for 39 days, reflecting a 11% increase compared to 35 days in December 2023.
  
  
• Units Sold: A total of 559 homes were sold in November 2024, representing a 4% decrease from 624 homes sold in December 2023.

These metrics indicate a dynamic market with sustained buyer interest, leading to relatively quick transactions and appreciating home values.

This swift turnaround time indicates that well-priced homes are attracting multiple offers and selling quickly. Buyers are acting fast to secure properties, often engaging in bidding wars to outmaneuver their competition.

As a result, the speed at which homes are selling underscores the competitive nature of Baltimore’s current housing market.

Baltimore’s Neighborhood Analysis

Baltimore is a city of neighborhoods, each with its own unique character, price points, and market dynamics. Some areas have experienced significant growth in home values, while others remain more affordable, attracting different segments of buyers.

Federal Hill

Federal Hill remains one of Baltimore’s most sought-after neighborhoods, with its historic charm and proximity to downtown making it a favorite among professionals and families.

The median home price in Federal Hill has reached approximately $450,000, marking a 7% increase from the previous year.

The neighborhood’s popularity has led to high demand, with homes often selling well above the asking price.

Federal Hill’s walkability, vibrant nightlife, and array of amenities continue to attract a steady stream of buyers, ensuring that property values remain robust.

Canton

Canton is another high-demand neighborhood, particularly known for its waterfront views and modern developments. The median home price in Canton is currently around $430,000, up 6% from last year.

Canton’s appeal lies in its mix of old and new, with historic row homes sitting alongside contemporary condos. The area’s easy access to the Inner Harbor and major highways further enhances its attractiveness to buyers seeking a blend of city living and suburban convenience.

This strong demand has kept the market competitive, with homes in Canton often selling within days of being listed.

Hampden

Hampden offers a more affordable alternative within Baltimore’s city limits while still experiencing price growth.

The median home price in Hampden is approximately $350,000, reflecting a 4% increase year-over-year.

Known for its artsy, eclectic vibe and community-oriented atmosphere, Hampden appeals to buyers looking for a neighborhood with a strong sense of identity.

The area’s unique shops, restaurants, and cultural events, like the annual HonFest, add to its charm and desirability.

As more buyers discover Hampden’s appeal, home values are expected to continue their upward trajectory.

West Baltimore

West Baltimore provides one of the more affordable housing options in the city, with a median home price of around $150,000. Prices in this area have risen by about 2% over the past year, indicating slow but steady growth.

West Baltimore is an area of significant interest for investors, particularly due to ongoing revitalization efforts aimed at improving infrastructure and community amenities.

While still facing challenges, West Baltimore presents opportunities for substantial appreciation as development projects take hold and more residents are drawn to its affordability.

Baltimore Rental Market Overview

Baltimore’s rental market has been experiencing significant shifts in recent years, largely driven by rising home prices and changing buyer dynamics.

As the cost of homeownership increases, a growing number of potential buyers are opting for rental properties, leading to heightened demand in the rental sector.

This increased demand is impacting both rent prices and vacancy rates across the city, creating a competitive environment for renters and favorable conditions for landlords and investors.

Average Rent Prices in Baltimore

As of December 2024, the Baltimore rental market has shown notable trends:

• Average Rent: Approximately $1,467 per month, reflecting a 3% increase over the past year.
  
  
• Studio Apartments: Average rent around $1,310 per month.
  
  
• One-Bedroom Apartments: Average rent approximately $1,467 per month.
  
  
• Two-Bedroom Apartments: Average rent about $1,596 per month.

These figures indicate a steady rise in rental costs across various apartment sizes in Baltimore.

It’s important to note that rental prices can vary significantly depending on the neighborhood.

For instance, areas like Canton have higher average rents, around $2,425 per month, while neighborhoods such as Mount Vernon offer more affordable options, with average rents around $1,301 per month.

This upward trend in rent prices is consistent across many of Baltimore’s neighborhoods, though the actual rent can vary significantly based on location, amenities, and property type.

• Federal Hill: Federal Hill, one of Baltimore’s most desirable neighborhoods, commands some of the highest rental rates in the city. The average rent for a one-bedroom apartment in this area exceeds $2,000 per month. This premium is driven by Federal Hill’s vibrant social scene, historic charm, and proximity to downtown Baltimore, making it a top choice for young professionals and those who prefer a lively urban lifestyle.
  
  
• Canton: Similarly, Canton has seen a surge in rental prices, with the average rent for a one-bedroom apartment also surpassing $2,000 per month. Canton’s appeal lies in its waterfront views, trendy eateries, and easy access to major highways, making it a popular neighborhood for both renters and homebuyers.
  
  The demand for rentals in Canton continues to push prices upward, especially for properties that offer modern amenities and convenient locations.
  
  
• Hampden: In Hampden, the average rent is slightly more affordable, typically ranging between $1,600 and $1,800 per month for a one-bedroom apartment. Hampden’s quirky, artsy atmosphere attracts a diverse mix of residents, including students, artists, and young professionals. While rents here are lower than in Federal Hill or Canton, they have been steadily increasing as the neighborhood’s popularity grows.
  
  
• West Baltimore: West Baltimore offers some of the most affordable rental options in the city, with average rents around $1,200 per month for a one-bedroom apartment. Despite the lower rental rates, the area is gradually attracting more interest, particularly as ongoing revitalization projects improve the neighborhood’s infrastructure and amenities. This trend could lead to future rent increases as demand grows.
  
  

Vacancy Rates

Baltimore’s rental market currently experiences low vacancy rates, reflecting strong demand and limited supply.

The rental vacancy rate stands at about 6%, slightly lower than the previous year. Fewer vacancies suggest a tighter market where rental units get occupied quickly, often attracting multiple applications from prospective tenants.

Several factors drive these low vacancy rates:

• Limited New Construction: New construction in Baltimore’s rental sector lags behind demand. While developers have focused on luxury apartments and high-end condos, affordable and mid-range rental units remain scarce.
  
  This lack of new supply increases pressure on existing rental properties, keeping vacancy rates low.
  
  
• Increased Demand: Rising home prices push more individuals and families to rent instead of buying. This trend is especially common among younger professionals who may lack the financial resources for a down payment or prefer the flexibility of renting.
  
  Additionally, some potential homebuyers delay purchasing homes, expecting possible market corrections or higher interest rates, further increasing demand for rental housing.
  
  
• Economic and Demographic Shifts: Baltimore’s strong economy, anchored by sectors like healthcare, education, and technology, continues to draw new residents.
  
  Many of these newcomers, particularly younger workers and families, choose to rent before deciding to buy a home. This influx of residents further boosts demand for rental housing, particularly in neighborhoods near employment centers and public transportation.

The combination of these factors suggests that Baltimore’s rental market will remain competitive in the coming years.

Landlords are likely to continue experiencing high occupancy rates, and rental prices are expected to keep rising, particularly in neighborhoods where demand outstrips supply.

For renters, this environment means they may face increased competition for desirable properties and should be prepared for higher costs, especially in more sought-after areas of the city.

Factors Influencing the Baltimore Housing Market

Several critical factors are shaping Baltimore’s housing market, and these influences will continue to guide its trajectory in the coming years.

Economic Conditions

Baltimore’s economy has shown resilience despite national economic challenges. The city benefits from a diverse job market, including strong sectors like healthcare, education, and technology.

Major employers, such as Johns Hopkins University and its health system, provide stability.

As of late 2024, the Baltimore metro area had an unemployment rate of around 3.7%, slightly below the national average. This low unemployment rate supports steady housing demand, as stable jobs encourage both homeownership and rental occupancy.

However, rising interest rates and inflation are significant concerns. The Federal Reserve’s actions to control inflation have led to higher interest rates, which impact mortgage affordability.

Inflation, which peaked at 9.1% in mid-2022, has slowly declined but remains high. Elevated consumer prices, particularly for essentials like food and energy, strain household budgets.

This could affect both buyer and renter behavior, as less disposable income is available for housing.

Population Growth and Demographics

Baltimore’s population has seen modest growth and remains relatively stable. The city’s population is around 585,000, with the broader metro area home to over 2.8 million residents.

Although Baltimore City has experienced population declines in past decades, recent years have shown stabilization. Some neighborhoods have even seen growth.

Younger professionals and families are driving much of this demographic shift. Baltimore’s affordability, especially compared to Washington, D.C., attracts young professionals seeking budget-friendly living while maintaining access to urban amenities.

Popular neighborhoods among this group include Canton, Federal Hill, and Hampden. These areas offer vibrant communities, proximity to downtown, and good public transportation. Families are also drawn to neighborhoods like Roland Park and Mount Washington, which offer good schools and family-friendly amenities.

The influx of younger residents, particularly millennials and Generation Z, keeps demand for housing strong. This trend sustains interest in both homeownership and rentals, especially in mid-range price points.

Interest Rates and Mortgage Availability

Interest rates have risen significantly over the past two years. The average rate for a 30-year fixed mortgage now hovers around 6%. This is a sharp increase from the pandemic period when rates fell below 3%.

Although 6% is still affordable by historical standards, it represents a significant rise in monthly mortgage payments compared to just a few years ago.

For example, a $300,000 mortgage at 3% interest requires a monthly payment of about $1,265 (excluding taxes and insurance). At 6% interest, the payment jumps to around $1,798—an increase of over $500 per month.

This increase affects affordability, especially for first-time buyers who may lack significant equity. As a result, higher interest rates could slow the pace of home price growth, as fewer buyers can afford to enter the market.

Lenders have also tightened mortgage availability due to higher interest rates and economic uncertainty. Stricter lending criteria mean that potential buyers may find it harder to secure financing, particularly those with lower credit scores or smaller down payments.

This trend could reduce the number of qualified buyers, impacting overall market activity.

New Construction and Development

New construction in Baltimore has not kept up with growing demand, contributing to the ongoing inventory shortage. In 2023, around 1,500 new housing units were completed in the city, falling short of the estimated demand. The shortfall is most pronounced in affordable housing, where the need is greatest.

Most new developments focus on high-end properties. Luxury apartments and condos dominate areas like Harbor East and Fells Point. These developments target higher-income residents and often feature amenities like concierge services, fitness centers, and rooftop pools.

While these properties are in demand, they do not address the broader need for affordable and mid-range housing.

This gap in affordable housing is widening. As a result, neighborhoods like West Baltimore and Highlandtown, where home prices are lower, are seeing increased demand. Buyers priced out of more expensive neighborhoods seek alternatives in these areas, driving up prices.

This increased demand makes even traditionally affordable neighborhoods less accessible to lower-income buyers.

The lack of affordable new construction also affects the rental market. With fewer affordable homes available for purchase, more residents remain in the rental market. This drives up rental prices and tightens vacancy rates.

Developers and policymakers face growing pressure to address the shortage of affordable housing. Potential solutions include affordable housing incentives, zoning changes, and public-private partnerships to increase the supply of affordable homes.

Baltimore Housing Market Forecast for 2025

Several key trends are expected to shape Baltimore’s housing market as we move into 2025. While the market will likely stay competitive, growth may slow as economic conditions change.

Home Price Growth

Home prices in Baltimore are expected to continue rising, though at a slower rate. Analysts predict that median home prices could increase by 3% to 4% annually over the next two years.

This is slower than the 5% growth seen in 2023. However, it still indicates a healthy market.

As of December 2024, the median home price in Baltimore is around $227,000. A 3% annual increase would bring this to approximately $237,000 by 2025.

A 4% increase would raise it to about $239,000. This steady appreciation suggests Baltimore will remain an attractive market for both homeowners and investors.

This is especially true when compared to more expensive cities like Washington, D.C.

Inventory and Market Conditions

Baltimore continues to face a persistent shortage of available homes. This trend is likely to continue into 2025.

As of December 2024, the city has around 2,500 active listings, a nearly 10% decline from the previous year. This scarcity is driving home prices higher as demand remains strong.

New construction could help ease some of the pressure, especially in the affordable housing sector. In 2023, about 1,500 new housing units were completed in Baltimore.

This number falls short of the demand. To effectively address the inventory issue, the city would need a significant increase in new builds, particularly in affordable price ranges.

However, given current trends, the shortage is likely to persist. This will continue to favor sellers, with homes in desirable neighborhoods selling quickly, often above the asking price.

Rental Market Outlook

Baltimore’s rental market is expected to stay strong through 2025. Rent prices are likely to keep rising. Higher home prices and mortgage rates may push more potential buyers into the rental market.

This trend is especially common among younger professionals and families who find renting a more viable option for now.

As of December 2024, the average rent for an apartment in Baltimore is about $1,500 per month. This is a 4% increase from the previous year.

By 2025, average rents could reach $1,560 to $1,600 per month. In popular neighborhoods like Federal Hill and Canton, rents already exceed $2,000 per month for a one-bedroom unit.

These areas are likely to see further increases.

Vacancy rates are expected to remain low, around 5% to 6%. This tight market reflects strong demand, especially in neighborhoods with good access to jobs, public transportation, and amenities.

Limited new rental construction has also kept vacancy rates low, pushing rents higher. Renters will likely face a competitive market with rising costs, particularly in desirable locations.

Economic and Demographic Trends

Baltimore’s economy is expected to remain resilient through 2025. The city benefits from a diverse job market and proximity to major employment centers like Washington, D.C. Strong sectors such as healthcare, education, and technology support the local economy.

Institutions like Johns Hopkins University and the University of Maryland Medical Center provide stable employment, which in turn supports housing demand.

However, broader economic uncertainties could impact the market. A potential recession, changes in federal policy, or further interest rate hikes could slow economic growth and affect the housing market.

Despite these challenges, Baltimore’s relatively affordable cost of living compared to other East Coast cities is likely to continue attracting new residents.

Demographic trends also favor a strong housing market. Baltimore continues to see an influx of younger residents and families. Millennials and Generation Z are drawn to the city’s culture, job opportunities, and relatively lower cost of living.

These groups will likely drive demand for both home purchases and rentals. Neighborhoods with good schools, public transportation, and proximity to jobs are particularly attractive to these demographics.

This trend supports a diverse and dynamic housing market with sustained interest across various price points and property types.

Is It Worth Buying A Property In Baltimore?

Yes, buying a property in Baltimore is worth considering due to its relative affordability, steady home price appreciation, and strong rental market.

The city offers a range of neighborhoods with growth potential, supported by a stable economy and ongoing revitalization efforts.

While interest rates have risen, the long-term investment potential and strong demand for rentals make Baltimore an attractive market for both homebuyers and investors.

Other Market Forecasts & Overviews