Marylands housing market is increasingly dominated by its oldest and wealthiest homeowners.
The past five years have witnessed a surprising shift.
For younger Marylanders hoping to climb the property ladder, the effects have been profound.
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The typical Maryland home now costs $400,000, putting homeownership out of reach for many first-time buyers.
State-Wide Trends in Maryland
Marylands housing market over the last five years reflects a nationwide aging-in-place trend.
Baby boomers have become an increasingly dominant force in homeownership.
The net effect is a tight housing market with limited turnover, as many boomers remain in long-held properties.
This migration is often driven by affordability and lifestyle needs.
Those who move within the state often head for quieter or more affordable locales: e.g.
Eastern Shore and Retirement Destinations
On Marylands Eastern Shore, several counties have become popular retirement destinations.
Areas like Talbot County (e.g.
These counties have some of the states highest median ages, indicating a concentration of retirees and empty nesters.
Interstate Migration
A notable trend is Maryland boomers moving out of Maryland upon retirement.
A large portion of those leaving are older adults seeking lower taxes or cheaper housing in other states.
For example, Pennsylvanias relatively low property taxes and Delawares lack of sales tax lure some Maryland retirees.
Financial Incentives to Stay
This strong preference for staying put is largely financially driven.
They seek smaller, single-story homes or condos that are easier to maintain and navigate as they age.
Family and Retirement Factors
Another major motivation is retirement and family proximity.
As boomers retire, they often prioritize being closer to children and grandchildren.
Housing Preferences
When baby boomers do buy homes, their housing preferences reflect both comfort and practicality.
Many seek single-floor living, favoring ranch homes or condos with elevators to avoid stairs.
This allows them to compete strongly for desirable properties.
finding that manageable forever home) can impact broader housing trends.
In 2018, the median home sale price in Maryland was around $285,000$300,000.
By 2023, the median price reached $400,000.
That represents roughly a 3040% increase, reflective of the tight supply and strong demand.
Boomer-owned homes have appreciated greatly, boosting homeowners equity.
Homeownership Demographics
Baby boomers have high homeownership rates.
Nationally nearly 80% of baby boomers own their home, compared to about 55% of millennials.
This share has grown; in 2010 it was significantly lower when more boomers were in younger age brackets.
This trend is evident in Maryland as well.
Millennials (who were 43% of buyers in 2021) dropped to 28% in 2022.
So compared to 20082017, the last five years saw boomers composing a larger share of home purchases.
Many of these boomer purchases in Maryland are second homes or relocation homes (e.g.
moving from one house in Maryland to another, or coming from out of state).
They typically have owned their homes ~10+ years before selling.
This lengthening tenure means fewer turnover sales.
Migration Patterns
Demographic shifts show Marylands population aging and some migration flux.
Older adults are a significant part of this outflow.
High housing costs in Maryland are cited as a key reason especially for retirees on fixed incomes.
Housing pop in Preferences
Though harder to quantify, housing pop in data reflect boomer choices.
New home builders in Maryland also responded by offering more one-level living options knowing boomers prefer them.
However, the data shows a slower transition than anticipated.
Market Crash Recovery Impact
Several factors explain how 20182023 diverged from prior years.
In 20082017, boomers commonly talked about moving to Sunbelt states or retirement communities.
In 2023, surveys show over three-quarters plan to stay in their current home for as long as possible.
Intergenerational Market Competition
Another difference is in intergenerational competition and housing types.
Decreased Mobility
Baby boomer mobility has also declined compared to the 20082017 period.
This contrasts with the previous generation at similar ages the Silent Generation had downsized more by their late 60s/70s.
), giving them outsized influence.
