6 Best Places to Invest in Maryland Real Estate for 2023

Real estate investment is one of the best ways to beat inflation. However, the current state of the real estate industry in the US, with the interest rate hikes, has resulted in affordability constraints and many potential home buyers choosing to wait it out. So, what does the picture look like for investment buyers? Dive into the current trends and forecasts for Maryland real estate to help you make an informed decision.

Maryland Housing Market Trends

According to the Maryland Realtors, the total housing sales went down 27% for the first two quarters of 2022 compared to the same period the previous year. A low inventory is also another issue that is plaguing the Maryland real estate market. 

Due to the low inventory and its inability to keep up with the demand from potential home buyers , median sales prices for homes in Maryland increased by 5.4% from the previous year. The overall sales performance also dipped in most of the counties in Maryland, especially Calvert County and Kent County. 

Given the trends in the Maryland real estate market in early to mid-2022, it’s crucial to look ahead to the state of the market in 2023. Industry experts believe that the market will stay robust with demand still at a high. While the current supply of homes in the market favors sellers, realtor experts believe that house prices will be cooling soon, which should make it affordable enough for many potential investors to close out their deals on investment properties. 

Where to Invest in Maryland Real Estate for 2023?

Choosing to wait it out until the market conditions become more favorable isn’t always the wisest move. The prices could continue to rise, which makes home prices and investment properties more difficult for many to afford. If you are an investor willing to take a risk with the current interest rate and house pricing, you’re in luck because there are many great real estate markets in Maryland where you could start your search. 

The following is a list of the best Maryland real estate markets to consider investing in for 2023.

1. Baltimore

Baltimore offers tremendous potential for potential investors on the hunt for the best real estate markets in Maryland. Despite being the largest city in Maryland and one of the key East Coast cities, housing and cost of living in the city are relatively affordable. 

The economy of Baltimore is also stable and resilient as it is home to many multinational companies with plenty of employment opportunities for its residents. Among the top employers in the city are TransAmerica, Under Armour, and John Hopkins. Therefore, this city attracts many young professionals looking to exploit these employment opportunities. There are also many universities located in the city.

For potential investors, you can get a good rental yield outlook in Baltimore. Some neighborhoods to focus your search on for investment opportunities are Charles Village, Lauraville, and Pigtown. Aside from rental units, these neighborhoods are filled with house-flipping opportunities.

2. Columbia

Columbia is one of those cities frequently on the list of the Best Small Cities in America. It is the crown jewel of Maryland, especially since it is the capital city. 

Columbia is an excellent location for investors looking for properties with a good school district, affordable housing, and good rental opportunities. There are 26 colleges in the area, which is an excellent market to target if you have a rental property. The average rental fee in Columbia is $1,600. Therefore, you should start your search for investment properties in a decent neighborhood with low housing prices so you can maximize your investment return. 

Furthermore, Columbia is a low-crime city, which can attract home buyers for those looking to enter the house-flipping business. 

3. Germantown

Germantown is a suburb of Washington DC, and has consistently ranked as one of the best places to live in the state. The desirability of the location makes it a good starting point for anyone looking for investment properties. 

It is also promising for house flippers to invest in because there are plenty of great schools in the area. You can attract families who are looking at single-family homes in Germantown. 

4. Frederick

Frederick is one of the best real estate markets in Maryland worth investing in, in 2023 and beyond. The reason is due to the booming local business scene and the vibrant downtown atmosphere, which attracts people looking to be employed by these local businesses in the area. 

There is also a strong artist community in Frederick, which means you have a good rental opportunity for these transients. As the community continues  to be revitalized, you can expect more demand for single-family homes and apartments in the years to come. 

5. Rockville

Rockville is located in Montgomery County in Maryland, which is an area known for families. It is a great place for those who want to live near the big city but away from the chaos and traffic. The proximity of Rockville to Washington DC makes it one of the most desirable places to invest in real estate. You can attract families and young professionals who work or study near the nation’s capital. 

Rockville has a strong rental market, especially for single-family homes, apartment complexes, and condo developments. You can narrow down your search for investment properties within this category. 

6. Towson

Towson is located north of Baltimore, and that proximity to Maryland’s largest city makes it a promising area for real estate investors. Towson brings a city-like atmosphere with a suburban community. The majority of the people who live in Towson are homeowners. However, there are good rental opportunities for students and young professionals looking to live in Towson and get a cheaper rental fee than they would get in Baltimore. 

The Key Takeaway

Use the information about each real estate market above to make an informed decision on where to look for investment properties. Before you begin your search, it’s always best to know your investment goals. That way, you can find a property aligned with your goals, and you can maximize your return.