Will Maryland Get More Expensive?
When people spaek about the most expensive parts of the US, they generally refer to California and the state of New York. Hawaii is known to be more expensive than anywhere else – so much so that it rarely makes it into the conversation. However, some states fly under the radar. Maryland is one of them.
It makes sense that Maryland is expensive, what with its proximity to both Washington, D.C. and the ocean. But few non-residents know just how expensive it is, taking 7th place in the cost of living index.
The hope that many Maryland residents have is that the cost of living will get lower over time, but is that just a pipedream? With inflation hitting record highs and housing prices on an upward curve, is Maryland going to get even more expensive?
Housing in Maryland
The cost of housing has been going up throughout the US for the past two years. Depending on which experts you choose to believe, it may be about to crash, to cool down, or to continue going up indefinitely. Either way, at present, housing in Maryland is more expensive than ever.
Interest rates are also going up, meaning rates on a 30-year mortgage are almost double than at the end of 2021. This makes mortgages significantly more expensive.
Interestingly, the average cost of homeowners insurance in Maryland is relatively low. It will cost you about $1,140 a year, compared to the $1,477 most Americans are paying. This does mean that at least one monthly expense is on the cheap side.
Will housing prices in Maryland continue to rise? Baltimore is already seeing a cooling down, but there are no clear trends as of yet.
Gas and Groceries
Everyone is surely aware that gas prices in the US are going up. It has been the big news story for weeks now, with sanctions on Russia limiting the supply of energy. But its impact on various states is more specific. This is because of the varying distances of transport routes around the country.
Maryland is unfortunately already significantly more expensive in terms of groceries than most of America. We’re not struggling with nearly as high prices as New York is, but they are far ahead of almost everyone. Many of the same factors that keep our groceries priced so high are driving inflation, including the use of gas for transport, fossil fuels for storage, and so on.
Transport and Utilities
Speaking of transport, Maryland is one of the most expensive states by this measure on a consumer level. Getting around in Maryland is not cheap, with gas prices driving up the cost of public and private transport. If you are traveling a significant distance to and from work every day, this will have a noticeable impact on your pocket.
Utilities, however, are closer to the national average. While still slightly more expensive than average, the margins are low. Keeping your lights on in Maryland is far more affordable than owning the home you’re lighting.
What About Renters?
Buying a home in Maryland is prohibitively expensive for many people, but renting is more affordable. However, the price of rent is going up around the country, with landlords trying to make up for months of lost rent during the pandemic. Maryland is no exception, and renters are struggling somewhat to keep up with the bills.
The good news for renters is that they have recourse in case landlords try taking advantage of them. Maryland landlords who have tried to raise rent unreasonably have faced successful legal challenges, and it is more difficult to evict people in 2022 than prior to the pandemic.
Maryland is getting more expensive, but this is simply in line with the rest of the country. Unfortunately, Maryland’s status as one of the most expensive states makes any increase in costs significant. While Maryland residents are generally hard workers and high earners, the next few months might test even the tightest pockets.
