Rents Or Wages: What’s Rising Faster In Maryland

Rents in Maryland are rising faster than wages in 14 Maryland counties in 2018 according to data released in a new report by the real estate research firm ATTOM Data. The report analyzed single family rentals in U.S. counties with a population of at least 100,000 and found that rents rose faster than wages in the majority of counties.

According to the report, rents rose faster in 375 of the 449 counties analyzed in the report or in 84 percent of counties analyzed. The report also looked at the best counties in the U.S. to buy single-family rentals in 2018 and Maryland counties ranked among the best and the worst.

The city of Baltimore ranked as the No. 1 region in the country to buy a single-family rental and the region posted the highest rental return in the country. Overall, rental returns went up in one-third of the counties analyzed in the report. Two Maryland counties, Wicomico County and Washington County, were classified as "low risk-high reward" market for single family rentals.

"As the stock market starts to show some weaknesses, investors continue to put their money into cash flowing assets such as rental properties," said Ross Hamilton, CEO at Connected Investors, an online community for real estate investors. "Many view rental real estate as a way to recession-proof their income and retirement."

Here’s how the 14 Maryland counties rank for buying single family rentals:

Baltimore City: No. 1, Over the past year, rents went up 3 percent in Baltimore City while the median sales price of a single family rental dropped 15 percent

Wicomico: No. 47, Over the past year, rents went up 9 percent in Wicomico County and the median sales price of a single family rental went up 12 percent

Washington: No. 87, Over the past year, rents went up 6 percent in Washington County while the median sales price of a single family rental went up 15 percent

Charles: No. 112, Over the past year, rents went up 2 percent in Charles County while the median sales price of a single family rental went up 5 percent

Baltimore: No. 133, Over the past year, rents went up 3 percent in Baltimore County while the median sales price of a single family rental went up 10 percent

Prince George’s County: No. 137, Over the past year, rents went up 2 percent in Prince George’s County while the median sales price of a single family rental went up 7 percent

Frederick: No. 166, Over the past year, rents went up 2 percent in Frederick County while the median sales price of a single family rental went up 4 percent

Saint Mary’s: N0. 179, Over the past year, rents went up 5 percent in Saint Mary’s County while the median sales price of a single family rental went up 12 percent

Harford: No. 184, Over the past year, rents went up 3 percent in Harford County while the median sales price of a single family rental went up 6 percent

Cecil: No. 196, Over the past year, rents went up 5 percent in Cecil County while the median sales price of a single family rental went up 9 percent

Carroll: No. 282, Over the past year, rents went up 3 percent in Carroll County while the median sales price of a single family rental went up 12 percent

Anne Arundel: No. 337, Over the past year, rents went up 3 percent in Anne Arundel County and the median sales prices of a single family rental went up 3 percent

Montgomery: No. 411, Over the past year, rents went up 2 percent in Montgomery County and the median sales price of a single family went up 2 percent

Howard: No. 443, Over the past year, rents went up 3 percent in Howard County while the median sales price of a single family rental went up 12 percent

Rents went up faster than wages in all of the above counties.

According to the report, Baltimore City was among the regions with the highest potential annual gross rental yield (28.9 percent). Nationally, the average annual gross rental yield was 8.9 percent in 2018, down from 9.2 percent in 2017. ATTOM defines annual gross rental yield as the annualized gross rent income divided by the median purchase price of single family homes.

ATTOM used data from the Department of Housing and Urban Development (HUD) and publicly recorded sales deed data collected and licensed by the firm.

Photo by Patch Editor Ashley Ludwig

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