Recent census data indicates that the cost of housing in the Baltimore area and the Maryland is increasing at a slower rate than the US. However, The increase of Maryland's housing costs is over 15% higher than the national average and a larger percentage of renters are cost burdened. The median Maryland renter pays around $1,600 a month in rent and utilities, about $100 more than the average Baltimore-area renter. Renters’ costs have increased 22.5% statewide and 24% in the Baltimore region compared with 32% nationally.
Nationally, the number of cost-burdened renter households hit yet another record high in 2023. In 2023, the number of renter households spending more than 30% of their incomes on rent and utilities was an all-time high of 22.6 million. A record-high 12.1 million severely burdened households spent over half of their incomes on housing costs. About half of all renter households were cost burdened in 2023. This rate was essentially unchanged compared to 2022, but rose 3.2 percentage points from pre-pandemic levels and 9.0 percentage points since 2001.
Nationally and within Maryland, renters are more likely to spend more than 30% of their income on housing. Statewide more than 46% of renters are cost burdened compared with a quarter of homeowners. In the Baltimore area (including Queen Anne’s County, Baltimore City, and the five surrounding counties) the same share of renters are cost burdened while the rate for mortgage holders is over a percentage point lower.
Baltimore City
The City has a mismatch between rental costs and the kind of rental units being constructed. Despite the growing unaffordability of housing in Maryland and especially the Baltimore area, luxury apartment buildings continue to be built. Since 2020, 80% newly constructed apartment buildings in Baltimore were luxury housing, according to real estate data firm the Costar Group. Most housing development worldwide is higher-end because of the higher profit potential for developers.
Some areas of Baltimore have a particularly high cost burden for renters. Tract 907 in Baltimore’s Coldstream-Homestead-Montebello neighborhood, for example, 70% of households are cost burdened. Rental units are just over half of the housing stock. The Community Development Network of Maryland said incomes were not rising to meet the costs of rent, emphasizing the mismatch between the high number of luxury units versus what Baltimoreans can afford.
Anne Arundel County
In Arundel's tract 7305.11 in the Glen Burnie area, 67% of households are cost burdened. County Executive Steuart Pittman said the disparity was part of a “housing crisis.” “Affordability is more important than just supply,” Pittman said. “The affordability problem doesn’t get any better when all you build is luxury housing.”
Current housing developments across the county are not required to have affordable housing, but new projects will be. Under the Housing Attainability Act, becoming effective in July, new housing developments over 20 units will be required to have 15% of its units for affordable rentals and 10% for affordable homes for sale.
Howard County
Maryland’s most expensive jurisdiction for renters and mortgage holders, Howard - where 28% of housing units are rented - has the largest affordability gap between homeowners and renters. Some 44% of County renters were cost burdened compared to 20% of homeowners. The median rent in the county is $2,040 a month, while median monthly housing costs for homeowners was $2,950.
The County has recently made investments to stabilize the housing situation in the area, such as $2 million invested to subsidize rentals and security deposit guarantees for the families of county students experiencing homelessness. The County’s Moderate Income Housing Unit Program requires a percentage of housing built to be affordable to households of moderate income - with moderate income level defined as “household income less than 80% of the Howard County median income (AMI) for units for sale and household income less than 60% of the Howard County median income for rental units."
