Home prices have surged in the U.S. in recent years. Driven by rising demand and supply constraints during the pandemic, the median home sale price spiked by nearly 50% from the second quarter of 2020 to Q3 in 2022. While the sale price of a typical American home has fallen in recent months since, housing prices remain at historic highs.
Not only have home values soared, but borrowing costs for home buyers have also climbed. The average interest rate on a 30-year fixed mortgage has been above 6% since September 2022, a high not seen in nearly a decade and a half. In a market defined by high prices and high mortgage rates, homeownership has become prohibitively expensive for a large number of Americans.
Still, housing prices are also subject to a number of factors that can be isolated from broader, nationwide market trends — and location is one of them. Two homes that are virtually identical can vary in price by hundreds of thousands of dollars, depending on where they are. And for prospective homeowners on a budget, some Maryland cities are far more affordable than others.
According to five-year estimates from the U.S. Census Bureau’s 2022 American Community Survey, the typical home in Maryland is worth $380,500. But across the 42 cities, towns and unincorporated communities in the state with populations of at least 30,000, median home values range from about $185,000 to over $1 million.
In any local market, home prices are often a reflection of what residents can afford. In Maryland, many of the least expensive cities for homebuyers are not high-income areas. Of the 42 places in Maryland with available data from the ACS, 18 have a median home value that is less than the statewide median. In all but three of these places, the typical household earns less than the statewide median household income of $98,461. Similarly, most of Maryland’s more expensive housing markets have higher earning populations.
Why It Matters
Homeownership is one of the most practical ways to build wealth in the United States, and rising borrowing costs and home values are pricing out a growing share of the population. The state of the U.S. housing market also has broader economic implications. According to the Congressional Research Service, spending associated with homeownership totaled $1.1 trillion in 2021, or nearly 5% of U.S. gross domestic product.
These are the cheapest and most expensive housing markets in Maryland.
42. Dundalk
- Median home value: $184,700
- Homes worth over $1 million: 0.8%
- Homeownership rate: 63.2%
- Median household income: $61,217
- Total population: 66,321
41. Hagerstown
- Median home value: $192,500
- Homes worth over $1 million: 1.5%
- Homeownership rate: 40.2%
- Median household income: $48,481
- Total population: 43,374
40. Salisbury
- Median home value: $199,300
- Homes worth over $1 million: 0.0%
- Homeownership rate: 25.8%
- Median household income: $53,309
- Total population: 32,960
39. Baltimore
- Median home value: $202,900
- Homes worth over $1 million: 1.4%
- Homeownership rate: 47.8%
- Median household income: $58,349
- Total population: 584,548
38. Essex
- Median home value: $235,600
- Homes worth over $1 million: 0.9%
- Homeownership rate: 58.0%
- Median household income: $67,580
- Total population: 40,842
37. Middle River
- Median home value: $239,500
- Homes worth over $1 million: 0.5%
- Homeownership rate: 62.5%
- Median household income: $72,970
- Total population: 31,155
36. Parkville
- Median home value: $242,600
- Homes worth over $1 million: 0.5%
- Homeownership rate: 64.2%
- Median household income: $79,661
- Total population: 30,520
35. Woodlawn (Baltimore County)
- Median home value: $251,800
- Homes worth over $1 million: 0.5%
- Homeownership rate: 63.9%
- Median household income: $74,618
- Total population: 42,239
34. Milford Mill
- Median home value: $254,100
- Homes worth over $1 million: 0.0%
- Homeownership rate: 44.6%
- Median household income: $71,846
- Total population: 31,513
33. Randallstown
- Median home value: $286,400
- Homes worth over $1 million: 0.4%
- Homeownership rate: 74.1%
- Median household income: $89,484
- Total population: 36,223
32. Glen Burnie
- Median home value: $312,200
- Homes worth over $1 million: 0.6%
- Homeownership rate: 63.8%
- Median household income: $86,283
- Total population: 71,427
31. Owings Mills
- Median home value: $318,200
- Homes worth over $1 million: 0.3%
- Homeownership rate: 47.7%
- Median household income: $92,322
- Total population: 34,999
30. Frederick
- Median home value: $343,800
- Homes worth over $1 million: 0.9%
- Homeownership rate: 58.5%
- Median household income: $89,981
- Total population: 78,390
29. Montgomery Village
- Median home value: $354,800
- Homes worth over $1 million: 0.5%
- Homeownership rate: 66.9%
- Median household income: $91,703
- Total population: 34,748
28. Waldorf
- Median home value: $360,300
- Homes worth over $1 million: 0.5%
- Homeownership rate: 72.1%
- Median household income: $111,454
- Total population: 81,077
27. Bel Air South
- Median home value: $362,300
- Homes worth over $1 million: 1.1%
- Homeownership rate: 82.9%
- Median household income: $113,739
- Total population: 57,109
26. Chillum
- Median home value: $369,400
- Homes worth over $1 million: 0.6%
- Homeownership rate: 41.5%
- Median household income: $74,479
- Total population: 35,908
25. Clinton
- Median home value: $379,400
- Homes worth over $1 million: 0.5%
- Homeownership rate: 90.8%
- Median household income: $122,266
- Total population: 40,224
24. Catonsville
- Median home value: $381,000
- Homes worth over $1 million: 0.7%
- Homeownership rate: 70.7%
- Median household income: $103,448
- Total population: 42,767
23. Pasadena
- Median home value: $382,100
- Homes worth over $1 million: 1.6%
- Homeownership rate: 80.9%
- Median household income: $113,944
- Total population: 32,161
22. Odenton
- Median home value: $387,600
- Homes worth over $1 million: 0.5%
- Homeownership rate: 64.7%
- Median household income: $120,280
- Total population: 45,026
21. Germantown
- Median home value: $393,700
- Homes worth over $1 million: 1.4%
- Homeownership rate: 65.9%
- Median household income: $109,268
- Total population: 90,210
20. Pikesville
- Median home value: $397,400
- Homes worth over $1 million: 4.8%
- Homeownership rate: 68.2%
- Median household income: $94,408
- Total population: 34,101
19. College Park
- Median home value: $404,700
- Homes worth over $1 million: 1.2%
- Homeownership rate: 40.9%
- Median household income: $76,973
- Total population: 34,416
18. Bel Air North
- Median home value: $408,000
- Homes worth over $1 million: 0.8%
- Homeownership rate: 91.1%
- Median household income: $133,613
- Total population: 31,308
17. Towson
- Median home value: $408,100
- Homes worth over $1 million: 5.0%
- Homeownership rate: 57.5%
- Median household income: $98,425
- Total population: 57,617
16. Bowie
- Median home value: $419,200
- Homes worth over $1 million: 0.6%
- Homeownership rate: 86.1%
- Median household income: $138,797
- Total population: 57,922
15. Severn
- Median home value: $439,400
- Homes worth over $1 million: 1.0%
- Homeownership rate: 73.1%
- Median household income: $125,330
- Total population: 56,438
14. Wheaton
- Median home value: $454,600
- Homes worth over $1 million: 0.4%
- Homeownership rate: 63.8%
- Median household income: $101,229
- Total population: 52,775
13. Columbia
- Median home value: $458,700
- Homes worth over $1 million: 1.6%
- Homeownership rate: 64.3%
- Median household income: $124,537
- Total population: 106,600
12. Eldersburg
- Median home value: $460,100
- Homes worth over $1 million: 1.1%
- Homeownership rate: 89.0%
- Median household income: $143,148
- Total population: 30,357
11. Gaithersburg
- Median home value: $472,800
- Homes worth over $1 million: 6.6%
- Homeownership rate: 51.0%
- Median household income: $104,544
- Total population: 69,016
10. Annapolis
- Median home value: $473,100
- Homes worth over $1 million: 12.1%
- Homeownership rate: 59.8%
- Median household income: $97,219
- Total population: 40,719
9. Aspen Hill
- Median home value: $495,800
- Homes worth over $1 million: 1.6%
- Homeownership rate: 63.7%
- Median household income: $104,582
- Total population: 54,262
8. Silver Spring
- Median home value: $606,100
- Homes worth over $1 million: 6.2%
- Homeownership rate: 37.7%
- Median household income: $95,213
- Total population: 81,808
7. Severna Park
- Median home value: $613,500
- Homes worth over $1 million: 8.3%
- Homeownership rate: 91.0%
- Median household income: $164,288
- Total population: 40,452
6. Olney
- Median home value: $615,700
- Homes worth over $1 million: 6.4%
- Homeownership rate: 89.1%
- Median household income: $166,541
- Total population: 35,522
5. Ellicott City
- Median home value: $617,200
- Homes worth over $1 million: 3.5%
- Homeownership rate: 72.0%
- Median household income: $149,534
- Total population: 73,589
4. Rockville
- Median home value: $623,800
- Homes worth over $1 million: 6.3%
- Homeownership rate: 54.6%
- Median household income: $122,470
- Total population: 67,142
3. North Bethesda
- Median home value: $714,500
- Homes worth over $1 million: 22.7%
- Homeownership rate: 49.2%
- Median household income: $131,142
- Total population: 49,763
2. Potomac
- Median home value: $1,044,900
- Homes worth over $1 million: 53.6%
- Homeownership rate: 85.2%
- Median household income: $218,710
- Total population: 46,499
1. Bethesda
- Median home value: $1,088,000
- Homes worth over $1 million: 56.4%
- Homeownership rate: 65.1%
- Median household income: $185,546
- Total population: 66,316
| Rank | Places in Maryland with at least 30,000 residents | Median home value ($) | Homeownership rate (%) | Median household income ($) | Total Population |
|---|---|---|---|---|---|
| 1 | Bethesda | 1,088,000 | 65.1 | 185,546 | 66,316 |
| 2 | Potomac | 1,044,900 | 85.2 | 218,710 | 46,499 |
| 3 | North Bethesda | 714,500 | 49.2 | 131,142 | 49,763 |
| 4 | Rockville | 623,800 | 54.6 | 122,470 | 67,142 |
| 5 | Ellicott City | 617,200 | 72.0 | 149,534 | 73,589 |
| 6 | Olney | 615,700 | 89.1 | 166,541 | 35,522 |
| 7 | Severna Park | 613,500 | 91.0 | 164,288 | 40,452 |
| 8 | Silver Spring | 606,100 | 37.7 | 95,213 | 81,808 |
| 9 | Aspen Hill | 495,800 | 63.7 | 104,582 | 54,262 |
| 10 | Annapolis | 473,100 | 59.8 | 97,219 | 40,719 |
| 11 | Gaithersburg | 472,800 | 51.0 | 104,544 | 69,016 |
| 12 | Eldersburg | 460,100 | 89.0 | 143,148 | 30,357 |
| 13 | Columbia | 458,700 | 64.3 | 124,537 | 106,600 |
| 14 | Wheaton | 454,600 | 63.8 | 101,229 | 52,775 |
| 15 | Severn | 439,400 | 73.1 | 125,330 | 56,438 |
| 16 | Bowie | 419,200 | 86.1 | 138,797 | 57,922 |
| 17 | Towson | 408,100 | 57.5 | 98,425 | 57,617 |
| 18 | Bel Air North | 408,000 | 91.1 | 133,613 | 31,308 |
| 19 | College Park | 404,700 | 40.9 | 76,973 | 34,416 |
| 20 | Pikesville | 397,400 | 68.2 | 94,408 | 34,101 |
| 21 | Germantown | 393,700 | 65.9 | 109,268 | 90,210 |
| 22 | Odenton | 387,600 | 64.7 | 120,280 | 45,026 |
| 23 | Pasadena | 382,100 | 80.9 | 113,944 | 32,161 |
| 24 | Catonsville | 381,000 | 70.7 | 103,448 | 42,767 |
| 25 | Clinton | 379,400 | 90.8 | 122,266 | 40,224 |
| 26 | Chillum | 369,400 | 41.5 | 74,479 | 35,908 |
| 27 | Bel Air South | 362,300 | 82.9 | 113,739 | 57,109 |
| 28 | Waldorf | 360,300 | 72.1 | 111,454 | 81,077 |
| 29 | Montgomery Village | 354,800 | 66.9 | 91,703 | 34,748 |
| 30 | Frederick | 343,800 | 58.5 | 89,981 | 78,390 |
| 31 | Owings Mills | 318,200 | 47.7 | 92,322 | 34,999 |
| 32 | Glen Burnie | 312,200 | 63.8 | 86,283 | 71,427 |
| 33 | Randallstown | 286,400 | 74.1 | 89,484 | 36,223 |
| 34 | Milford Mill | 254,100 | 44.6 | 71,846 | 31,513 |
| 35 | Woodlawn (Baltimore County) | 251,800 | 63.9 | 74,618 | 42,239 |
| 36 | Parkville | 242,600 | 64.2 | 79,661 | 30,520 |
| 37 | Middle River | 239,500 | 62.5 | 72,970 | 31,155 |
| 38 | Essex | 235,600 | 58.0 | 67,580 | 40,842 |
| 39 | Baltimore | 202,900 | 47.8 | 58,349 | 584,548 |
| 40 | Salisbury | 199,300 | 25.8 | 53,309 | 32,960 |
| 41 | Hagerstown | 192,500 | 40.2 | 48,481 | 43,374 |
| 42 | Dundalk | 184,700 | 63.2 | 61,217 | 66,321 |
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