Looking to invest in Maryland real estate? If so, now is the perfect time to do so, and we’ll tell you why!
Real estate investing is a great way to build wealth. The monthly rental income and the potential property appreciation can help boost your net worth.
That being said, the location you invest in is critical to your success. In fact, it can make or break your investment. As such, before investing in a certain location, make sure you conduct proper due diligence.
In the following article, we’ll take you through some of the major reasons why you should consider investing in Maryland real estate.
7 Reasons to Invest in Maryland Real Estate
1. Strong and Diverse Economy
First and foremost, Maryland has a strong and diverse economy. The state’s economy is supported by industries such as manufacturing, aerospace and defense, IT and cyber-security, and bio-health and life sciences.
Even while the country’s economy is reeling from the effects of Covid-19, Maryland seems to be recovering quite well. In fact, according to data released by the U.S. Department of Labor, there was job growth in multiple industries.
- Financial activities: added 1,200 jobs
- Education and health services: added 2,300 jobs
- Government: added 3,100 jobs
- Trade, transportation and utilities: added 3,700 jobs
- Professional and business activities: added 5,100 jobs
Manufacturing and construction were the only industries that reported losses with decreases of 200 and 500 jobs, respectively.
2. Huge Renter Population
Maryland is home to one of the largest populations in the country. The latest census estimates the population to be more than 6 million. Out of this, more than 33% live in rented homes. This population is expected to continue rising, as more and more people choose to rent rather than own due to high homeownership costs.
The average rent for a 1,078 sq. ft. apartment stood at $1,724 during the first quarter of 2021. Of course, this can vary greatly, depending on factors such as location.
3. Outdated and Distressed Properties are Available
The availability of outdated and distressed homes is high. About fifteen percent of homeowners, according to the latest data, are behind on their mortgages. This is significantly higher than the national average.
So, if you are looking to buy a home below fair market value, Maryland is ripe for the picking. What’s more, the homeowners who’ve been displaced will also need somewhere to live. This will mean a stable rental market for the foreseeable future.
4. Maryland is Near Washington D.C.
A big chunk of Maryland is within commuting distance to Washington D.C. Since the median home value in Maryland is lower than that of Washington D.C., people find it more affordable to live in Maryland.
In fact, it’s this accessibility that helped stabilize the property taxes during the economic downturn in 2008.
5. High Quality of Education
According to a recent WalletHub study, Maryland ranks as the 2nd most educated state in the entire country. The ranking was based on two factors: quality of education and educational attainment.
Some of the best school districts in the state include:
- Frederick County Public Schools
- Carroll County Public Schools
- Worcester County Public Schools
- Montgomery County Public Schools
- Howard County Public Schools
Quality of education is an important factor that families with school-age children consider.
6. Plenty of Attractions
When it comes to attractions, Maryland has it all. Whether you’re looking for cutting-edge dining, eclectic shopping, sports and resorts, theme parks and casinos, or even naval and space facilities, the Mid-Atlantic state won’t disappoint.
Its close proximity to Washington, D.C. keeps it modern, but the incredible history the region has ensures it’s firmly rooted in the past.
Some of the top sites in Maryland include:
- Ocean City. Here, you can dine on beach favorites, go shopping, watch live performers and play games
- Chesapeake and Ohio Canal. Built during the mid-1800s and stretching over 100 miles, the C&O canal offers tons of opportunities, including breathtaking attractions, cycling and hiking
- Assateague Island. This uninhabited, beautiful island is best known for its wild horses. A stroll along the island will allow you to admire the landscape and enjoy seeing horses along the shoreline
- Fredrick. Are you a fan of antiques? If you are, the small city of Fredrick is a must-visit. You’ll find lots of historic homes here, such as the Barbara Fritchie House, as well as get a chance to visit the several great antique stores in the area
- Chesapeake Bay. Once known as the Great Shellfish Bay, the Chesapeake Bay is one of the largest estuaries on the planet. You could do some ax-throwing, partake in a zombie survival challenge or even taste some wine in any of the fun-filled wine tasting tours
7. Many Desirable Areas
As a potential real estate investor, you have many areas to choose from. Some of the top areas you should consider include:
- Baltimore. The city has a steady and dependable economy. The neighborhood you choose should be dependent on your investment goal. If you are interested in flipping, then Lauraville is a top choice. If you are looking to earn passive income through a ready-to-rent property, then Charles Village is a good place
- Rockville. This is a magnet for renters. It has high job growth, and the median home value is $498,200.
- Germantown. Although a suburb of Washington D.C., the neighborhood is one of the best places to live in Maryland. The median home value is $326,600
- Columbia. Columbia is top-rated for its diversity, nightlife, housing, and schools. The median home value is $367,600. The majority of the residents own their homes (67%), so you might consider flipping
- Frederick. This is Maryland’s 2nd largest city. The booming job market, growing economy and livable infrastructure make it a top investment spot. The median home value is $255,100
The growing rental demand coupled with relative affordability in certain areas makes Maryland a gold mine for investors. If this is your first time investing in real estate, hiring professional help, like McKenna & Vane, may be in your best interests. We can smoothen out the process for you and help you avoid common pitfalls.