Learn more about the housing market in Maryland

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.

Key Takeaways

1. Maryland’s housing market remains competitive heading into 2026, driven by steady demand, limited inventory, and prices that continue to rise, though at a slower pace than prior years.
2. Supply constraints are still the market’s biggest challenge, as new construction and permitting remain below pre-pandemic levels, keeping upward pressure on prices and rents.
3. Mortgage rates have stabilized around the low-6% range, helping support buyer activity but still limiting affordability for many households.
4. Foreclosure activity has declined meaningfully since 2024, signaling improved homeowner stability even as affordability remains strained.

Maryland Housing Market Overview 

Also known as the Old Line State, Maryland is a Mid-Atlantic state on the Chesapeake Bay. It is known as much for its urban areas as it is for its seaports and fishing industry. Some of the largest cities in Maryland include Baltimore, Columbia, and Germantown.  

According to data from IBISWorld, real estate, rental, and leasing was the most profitable sector and contributed the most to its GDP in 2025, with a growth of nearly 2% in 2025, making an overview of its housing market very worthwhile. Maryland housing market predictions indicate that economic uncertainty, low inventory, and rising home prices will continue to shape the market. 

At the beginning of 2025, real estate experts predicted that Maryland housing prices that had risen all throughout 2024 would still continue to rise, reflecting a steady increase in the number of homebuyers. After the number of newly listed homes dramatically decreased in 2022, 2023 saw a sharp increase that contributed to more competitive market prices, and this trend was only expected to continue. As of April 2025, this seems to be the case, as other publications recognize that prices are only continuing to increase. Maryland housing trends show brisk sales and rising prices, particularly in communities near the Baltimore or Washington D.C. metro areas. This signifies an imbalance created by steadily rising demand with supply that cannot keep up.  

Experts in the same article predicted that interest rates that were approaching 8% at the end of 2023 would stabilize by the second half of the year but remain over 6%. According to Zillow, this prediction has stayed true even as we head into 2026, as interest rates in Maryland have stabilized at 6.125%. Based on these changes, the housing market in Maryland is be expected to be stable on other fronts as well.

Maryland Housing Market Trends 

To understand the Maryland real estate market, it’s important to keep up with trends such as the average price and rate of rising property prices in Maryland. Let’s look at some key real estate trends in Maryland: 

Note: These statistics are based on Redfin’s monthly housing data from October 2025.

Median Home Price

The median price of a home in Maryland as of October 2025 was $446,300, according to Redfin’s monthly housing market data. This is an increase of 2.6% from October 2024. In Baltimore, Maryland’s most populous city, the median price in April 2024 was considerably lower at $240,000, but was still up a drastic 9.1% from the previous year. Annapolis, the capitol city, had median prices much higher than the statewide median at $548,000, a 23.2% drop from October 2024.  

The list price plays a significant role in competitive market dynamics and seller dominance, with many homes being sold above or below the list price depending on the market conditions. 

Number of Homes Sold in October 2025

5,712 homes were sold in Maryland in October 2025, which is a 2.6% decrease from the previous year. Though this suggests some stability in inventory throughout the year, this number falls considerably short of numbers seen in previous years.

It is important to keep in mind that nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%.  

Median Days on Market (DOM)

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer's market as sales are slower and sellers have less leverage.

The median DOM in Maryland in April 2024 was 44 days, which is up 10 year-over-year compared to October 2024. This means that on average, listings spend a month and a half on the market before they are purchased.

New Supply Statistics

According to the U.S. Census Bureau’s Building Permits Survey, Maryland’s total residential permitting activity has remained well below pre-pandemic levels, and 2025 data shows no meaningful surge in new construction. With permitting still constrained relative to population growth, limited housing supply is expected to continue putting upward pressure on prices and affordability heading into 2026.

Property Tax Rate

According to Rocket Mortgage, the average property tax rate in Maryland is 1.05%. This is higher than 31 states in the country, and its average annual property tax is around $3,047.08. However, it is important to keep in mind that this statistic reflects the average of a lot of data in a populous state with significant geographic and economic diversity. Tax rates are likely to vary depending on the value of a home and its location in the state.  

Foreclosure Rate in Q1 of 2025

In the first quarter of 2025, Maryland recorded 1,899 foreclosure filings, according to ATTOM data. This represents a 0.3% decrease from the previous quarter and a 24.3% decline year over year, indicating that foreclosure activity has eased compared to 2024. While filings remain notable, the downward trend suggests improving homeowner stability as Maryland moves toward 2026.

Hottest Local Markets in Maryland 

Here are a few of the top local housing markets in Maryland going into 2026, where the median sale price provides a benchmark for understanding the overall price trends within the housing market: 

1. Baltimore

Baltimore is the most populous city in Maryland by a significant margin. A historic seaport, Baltimore is situated along the western coast of the Chesapeake Bay, north of the capital city of Annapolis. Its median home saw an increase of 9.1% from October 2024 to October 2025 to $240,000. Some of the most popular neighborhoods in Baltimore include Canton, Frankford, and Riverside. 

2. Columbia

Columbia is the second most populous city in Maryland, located further inland from the Chesapeake Bay and southwest of Baltimore. The city saw a 5.1% increase in median home sale prices between October 2024 and 2025, landing on $517,000. Its median DOM increased to 28 days in 2025, and while that increase suggests a shift in buyers’ favor, it is important to consider that such a relatively low number still suggests a competitive seller’s market. Some of the most popular neighborhoods in Columbia are Long Reach, Hickory Ridge, and Kings Contrivance. 

3. Annapolis

Annapolis is the capital city of the state of Maryland. Situated along the western coast of the Chesapeake Bay, its population is relatively modest compared to other cities in the state. However, its housing market has seen considerable growth in the past year.  

Home sales volume in Annapolis decrease of 23.2% year-over-year in October, but this number can be expected to rise during the spring and summer months. Its DOM is down to 35 days from 43, suggesting that the market is becoming increasingly competitive. Some of the most popular neighborhoods in Annapolis include Edgewater, Pasadena, and Glen Burnie. 

Economic Factors Impacting the Maryland Housing Market

A holistic view of Maryland’s housing market requires a basic understanding of the main economic drivers affecting the market. Let’s take a look at a few critical ones below: 

Mortgage Rates

Mortgage rates are a common cause of concern for would-be homeowners across the U.S. in 2026. As previously mentioned, Zillow lists Maryland’s current 30-year fixed-rate mortgage averages around 6.125%, which hovers just around the national average. As predicted, this number has settled significantly when compared to the numbers seen in previous years.  

Inflation and Cost of Living 

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Maryland. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income. 

Population Changes and Demographics

A changing population can also have implications for the housing market. According to the U.S. Bureau of Labor Statistics, the unemployment rate in Maryland in September, 3.8%, is the 22nd lowest in the country. This low unemployment rate suggests a thriving and healthy economy that is bound to help the housing market in the state.

Maryland Housing Market Forecast 2025

As previously noted, Maryland’s housing market entered 2024 with strong price momentum following gains in 2023, and prices largely continued rising through 2025. More recently, moderating mortgage rates and slightly improved sales activity suggest that price growth is beginning to slow, pointing toward a more stabilized—but still competitive—market heading into 2026.

However, it is also important to monitor home prices dropping, as this can have significant implications for buyers, sellers, and the overall housing market. Sustained drops in home prices may indicate broader market challenges and affect affordability for buyers. 

Likelihood of Maryland Housing Market Crash

Though surging prices in the Maryland housing market may seem concerning, experts uphold that a crash is significantly unlikely in 2026. There are many reasons for this, including a very healthy economy signified by a low unemployment rate, interest rates that have significantly settled from last year, and a growing number of people who are moving to the state. The market seems poised to continue appreciating and is unlikely to reach a concerning point any time soon.

Forecast for the U.S. Housing Market

Now that we’ve looked at Maryland’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years?

The United States' current median existing-home sale price is around $415,200 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

Maryland Rental Market

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.

Rental affordability remains a major challenge nationwide. According to the Joint Center for Housing Studies of Harvard University, more than 22 million renter households were cost-burdened as of the most recent national data, with roughly half of all renters spending over 30% of their income on rent and utilities.

While rental markets cooled after 2023 as new units came online and demand leveled off, affordability pressures persist. Through 2025 and heading into 2026, rent growth has slowed in many metros but continues to outpace income gains, keeping housing costs elevated for a large share of renters.

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year.

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread.

This short summary leads directly into Maryland’s current rental market. Below are just a few of the current trends for Maryland’s rental market based on data pulled from Zillow:

Maryland Rental Market Key Trends 

• Median rent: $2,000

• Month-over-month rent charge: $0 

• Year-over-year rent charge: +$100

• Available rentals: 10,847

Conclusion

Maryland’s mix of urban and rural markets continues to produce wide variation in local housing conditions, which is reflected in statewide averages. Heading into 2026, the market shows signs of ongoing stabilization, with slower price growth compared to prior years rather than rapid appreciation. Analysts will continue to monitor interest rates, inventory trends, and construction activity to assess how Maryland’s housing market adjusts throughout 2026.

FAQs

Is Maryland a buyer’s or seller’s market in 2026?

Maryland is expected to remain closer to a seller’s market in 2026, especially in areas near Baltimore and Washington, D.C., due to tight inventory and steady buyer demand.

Are home prices in Maryland expected to keep rising in 2026?

Yes, most forecasts point to continued price growth in 2026, but at a slower, more moderate pace compared to the rapid appreciation seen in 2023–2024.

How affordable is housing in Maryland compared to other states?

Maryland is more expensive than many states, particularly in metro areas, with affordability challenged by high prices, property taxes, and interest rates that remain elevated by historical standards.

What’s happening with housing supply in Maryland?

New housing supply remains limited. Residential permitting and construction have not rebounded enough to meet demand, which is expected to keep inventory tight into 2026.

Is a housing market crash likely in Maryland?

A crash is considered unlikely. Strong employment, declining foreclosure activity, and sustained demand support a stable market, even as growth slows and conditions normalize.