Housing Stock Low in Maryland: How Long Will Buyers Struggle to Find a Home?
Maryland is a famous state for many to make their home in. It is in proximity to Washington DC and other central states, not to mention its hubs like Baltimore. However, in spite of this, we are repeatedly seeing buyers struggle to find a home in these markets. Why is this? Let’s take a look.
Mortgage Rates
Mortgage rates will always be one of the major factors that stand between someone being able to purchase a home and others who can’t find what they are looking for. At the moment, mortgage rates are meager and affordable, but there aren’t the properties to go around. Though people are willing to buy properties, there are significantly fewer ones available compared to other states. Though there are excellent mortgage rates to take advantage of, the reality is that there are no houses that can be bought.
It is expected that mortgage rates in Maryland might rise significantly in the next few years, especially if the market does burst. Though now would appear to be a perfect time to buy in this state, there are very few who will be able to apply for the necessary mortgage and then also find an available property that they can feasibly bid on.
Living Costs
As with any other state in the USA, we must consider some of the various costs of living that come into play when living in Maryland. There are some inevitable costs that everyone has to face, and so it is vital that those in Maryland can save money and find the best deals to support themselves with – especially as living costs continue to rise. Something as simple as homeowners insurance coverage in Maryland and its associated costs could seriously hold a buyer back from being able to find the right place to buy.
A low stock of affordable housing frequently means that a buyer will have to look elsewhere to find somewhere to stay. While renting is an excellent option for many, it can also eat into the funds of those who are actively looking to buy. With no choice but to stay renting, it can be challenging for such people to find the gap in the market that they need to be able to leap from renters to homeowners.
The Maryland Market
The Maryland market is unique compared to some states as it is right next to Washington DC, gathering politicians, business owners, journalists, and more. Though many live in this state and will never set foot in the district, there are also plenty who are trying to take advantage of the lower cost of living.
Unfortunately, this sets the market up to be one that suits renters and not buyers. If you are someone who is only going to be living in this state until your politician or boss has ended their term, you might not want to put down roots and commit to buying a property. It just might make more sense to rent.
This means that landlords will hoard their extra properties rather than release them to the market. There will always be someone willing to rent these homes, so why should they sell them when there is still the potential for money to be made in the rental market? When trying to negotiate in a market that is crowded with properties that are not up for sale, it can be difficult for buyers to get their foot in the door.
The Maryland market is strange as it really does favor the renter over the buyer. As long as this persists, we will continue to see a shortage of properties that make it extremely hard for new buyers to gain a foothold. The proximity of DC, unfortunately, means that things are unlikely to change soon, but we might see the market begin to free up as mortgage rates rise and other changes take root. Together with plans to build new affordable houses, there is no reason why Maryland cannot turn its current housing shortage around. There are plenty of opportunities for them to be able to do so.
