A new report from the Joint Center for Housing Studies at Harvard University reveals that Maryland housing costs have surged, pushing renters and prospective home buyers to their financial limits. In major metro areas like the suburbs of Washington, D.C., Baltimore, Hagerstown, and Eastern Shore communities, renters are spending nearly half their income on rent, setting a new record for cost burdens. Meanwhile, high home prices and interest rates are making homeownership increasingly unattainable, particularly for younger households.
“For those lucky enough to find a home at all,” said Alexander Hermann, senior research associate at the Joint Center, “the combination of high home prices and high interest rates make the market mostly unaffordable for many buyers.” The report highlights a 1.4 percentage point drop in the homeownership rate among households under 35, while rates for those over 45 remain stable, underscoring the disproportionate impact of Maryland housing costs on younger residents.
The escalation of Maryland housing costs has forced renters to make significant sacrifices. Hermann noted that renters are cutting back on essentials, such as food, or enduring long commutes to afford rent payments. These financial pressures limit renters’ ability to save, exacerbating economic insecurity. For prospective buyers, the inability to purchase a home due to Maryland housing costs hinders wealth-building opportunities through home equity, a critical avenue for financial stability.
The report points to persistent demand as a key driver of Maryland housing costs. With limited housing supply, prices continue to climb, making both renting and buying less affordable. “Maryland is a leader on looking to boost the housing supply,” Hermann said. “That’s the number one thing you can do – expand the supply of housing, to create housing opportunities for more households as demand remains persistent.”
Maryland has taken steps to mitigate the affordability crisis by prioritizing housing development. Increasing the supply of homes is seen as a critical strategy to ease Maryland housing costs and create opportunities for more residents. Local governments and developers are focusing on building in high-demand areas, though progress is slow compared to the scale of the challenge. The state’s efforts aim to balance supply and demand, potentially stabilizing rents and home prices over time.
The rise in Maryland housing costs aligns with national trends, where median home prices have increased 5.7% annually, according to 2024 National Association of Realtors data. Maryland’s proximity to high-cost areas like Washington, D.C., amplifies these pressures, particularly in suburban markets.
The state’s high rental burdens also reflect a broader affordability crisis, with 51% of U.S. renters considered cost-burdened, per the Joint Center’s 2025 report. Maryland’s focus on housing supply could serve as a model for other states, but immediate relief for renters and buyers remains elusive as construction lags behind demand.
