Many of these homes are luxury residences featuring extensive square footage and high-end amenities.
Waterfront and resort-area homes are another category of interest.
Some top earners purchase prime waterfront properties along the Chesapeake Bay and in coastal communities.
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Its gated, amenity-rich community (yacht club, golf course, etc.)
and scenic waterfront estates make it a magnet for wealth.
They often seek expansive homes (many exceeding 4,000 sq.
ft.) of any generation in 2023.
High-income Maryland buyers mirror this tendency, favoring space and privacy.
The small segment opting for luxury condos/townhomes tends to be those valuing location or lifestyle convenience over sheer size.
A notable share of these buyers were Baby Boomers (born ~19461964) entering retirement or late-career phase.
Many boomers with high incomes actually chosenotto move at all a trend of aging in place.
Marylands data shows a steady net outflow of older, high-income residents to lower-cost states throughout the past decade.
Within-State Movement
Within Maryland, wealthy downsizers often targeted leisure-oriented communities.
Western Marylands Deep Creek Lake region experienced a similar influx on a smaller scale.
Some made permanent moves to these larger homes, while others bought second residences.
Corporate Relocations and In-Migration
Corporate relocations also played a part.
For instance, Marylands biotech and defense sectors attracted some executives into the state.
This influx of younger talent helped replenish some of the outflow of older affluent movers.
A striking trend was the increased propensity for all-cash purchases at the high end.
Jumbo loans (mortgages above the Fannie/Freddie limits) became increasingly common.
This reflects how rising home prices and affluent buyers demand pushed more financing into jumbo territory.
Maryland, being a high-cost state, contributed to that trend.
Impact of Rising Interest Rates
Rising interest rates in 20222023 influenced financing choices as well.
Many locked in 30-year loans under 34% interest.
This helped insulate the luxury segment from the rate shock.
When mortgages were used, they were often structured with significant down payments.
They are a select group roughly the top 12% of households by income.
These buyers tend to be middle-aged or older and highly educated, often in dual-income households.
In Maryland, many $500K+ buyers are in their 40s, 50s, or early 60s.
They include successful professionals at the peak of their careers and recent retirees with high pension or investment income.
High-income buyers are very likely to be married or partnered, since having two earners greatly increases household income.
Many of these households are small in size typically 2 to 4 people.
These careers often come with salaries in the high six figures for top talent.
Urban Areas
Surprisingly few $500K+ earners chose to buy in Baltimore City proper during this period.
However, within Marylands portion of the D.C. metro, the demand was very strong.
Areas like Bethesda, Potomac, Chevy Chase, and Kensington in Montgomery County saw intense high-end market activity.
These places are coveted for their proximity to D.C., top-rated schools, and prestigious addresses.
Likewise, Howard County (Columbia, Clarksville, etc.)
Beachfront and lakefront properties became hot commodities for Marylands affluent.
Many of these transactions were seasonal or investment purchases rather than primary residences.
During 20202021, Maryland saw a surge in vacation home buying by affluent residents.
Beach towns and mountain retreats were prime targets.
These vacation-home purchases were often all-cash deals.
High-income buyers used these second homes both for personal use and as short-term rentals (Airbnb/VRBO).
High-income buyers in that era often held off or found bargains in the bust.
Wealthy buyers post-2018 often had to compete in bidding wars (something rarely seen in the 20082011 trough).
By the mid-2010s, things normalized.
Shift: However, there has been a lifestyle evolution.
Demographics
The baton has been passing from Boomers to Gen X/Millennials.
Millennials were mostly first-time buyers toward the end of that span.
