One of the biggest challenges for prospective real estate investors is deciding where to start your investment journey. Cities across the US have their own individual benefits to prospective investors, and their own unique downsides. Today we want to answer the question is Baltimore real estate a good investment?
Baltimore is a historic city that is falsely construed as being on the downturn. While the population decreased 5% from 2000 to 2010, there are a variety of other factors that should be considered by investors.
Employment
Employment opportunities drive where people want to live, and importantly, what they’ll pay. Prior to March 2020, the Baltimore area saw five consecutive months of over-the-year job gains. The economy of the area is incredibly diversified too. Some of the top employers of the area include Johns Hopkins University as well as Johns Hopkins Hospital, athletic apparel company Under Armour, financial services institution T Rowe Price, energy company Exelon, and many more. This diversity brings in a variety of different possible renters to different neighborhoods across the city all in need of different kinds of properties. This provides potential investors with a wide net to cast. When answering the question is Baltimore real estate a good investment, looking to the economic diversity of the city is a good place to start.
Diverse Neighborhoods
Baltimore’s economic diversity is matched only by the diversity of its neighborhoods, and what kind of renters each appeal to. This means investors have a good opportunity to be matched with different kinds of renters, from families to college students to young professionals and more. Charles Village, for instance, is primed for investment in college housing due to its proximity to Johns Hopkins University. Nearby Hampden is a trendy area for young families to settle down in. Those looking to hedge their bets on luxury apartments can look to Harbor East, which has been built up in recent years thanks to its proximity to Downtown. Fed Hill and Fells Point have close proximity to the city’s nightlife, which has brought in a diverse group of young professionals. And other communities are perfect for investors looking to get in early, such as Remington and Waverly, two communities that have become desirable Baltimore destinations in recent years.
Location
When determining is Baltimore real estate a good investment, considering location is important. One of Baltimore’s most desirable traits for renters and buyers, and in turn property investors, is its prime location for commuters. More frequently, workers in nearby DC are looking to Baltimore as a more affordable alternative to DC’s skyrocketing cost of living. And while the population of the city proper has fallen some, the metro area boasts a population of over 3 million. And with a strong job market, there is potential to see this trend begin to reverse. Baltimore boasts a strong location, with easy access to I-95 and is a reasonable commute to other large metro areas along this corridor.
So, Is Baltimore Real Estate a Good Investment?
When considering where to begin your property investment journey, or where to invest next, Baltimore should be at the top of your list. Steady job growth, prime location, and diverse communities offer strong incentives for property investors to put their money into a stable market and see a return on investment.
Like any real estate investment market however, it’s important to have an experienced agent helping you build your portfolio. The team at Ben Frederick Realty are Baltimore’s investment realty experts. Contact our team today to get started, or check out our current listings.
