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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