The market has completely flipped

Maryland went from a sellers' market in 2021-22 with low rates and bidding wars to a frozen market. Low inventory, construction costs, labor shortages, and climbing interest rates have cooled the buying frenzy.

Everything costs more now

Home repairs, HOA fees, insurance, and utility bills have all climbed. Combined with higher interest rates, buyers can afford less and sellers are less motivated to move.

“It's just expensive to be alive right now. Housing is one cost in the overall pot.”

The Fed just made it worse

The Federal Reserve raised interest rates this week, meaning mortgage affordability won't improve anytime soon for Marylanders already stretched thin.

Buyers have more power now

With fewer people moving, buyers can negotiate and see multiple homes instead of competing in bidding wars. Popular neighborhoods still sell, but the dynamic has shifted.

“There's more negotiating happening. Instead of looking at one house, one time, they have the luxury of a second showing.”

Retirees are stuck in place

David and Pat Vorel bought their Ellicott City home in 1992 at 8.5% interest. After 34 years mortgage-free, downsizing would cost them more per month than staying put.

“I hate to say it, but I don't know how I would ever buy a house today.”

Salaries haven't kept pace

The Vorels note that house prices relative to salaries are far higher now than when they bought. Their adult children are struggling to afford what their parents easily obtained.

“Back then, the prices of houses relative to our salaries were not as large as they are now.”

Downsizing options are limited

Near Annapolis, Jerri Kamicker wants to leave her four-bedroom home but can't find smaller, manageable houses without stairs in her area. She feels trapped by a lack of mid-range options.

“It's just too much upkeep, too much space. But we don't have anywhere to go.”

Two incomes still aren't enough

Mercy Rufai and a friend plan to buy together, needing thirty thousand dollars for a down payment on a three hundred eighty-five thousand dollar home. Rising interest rates are now forcing them to pause their search.

“I don't have $500,000 just laying around somewhere. I don't think the average American does.”

Childcare costs derail homebuying

Taylor Pessin spent at least fifteen hundred to two thousand dollars monthly on daycare, then another two hundred to four hundred seventy-five dollars on before-and-after care. The financial hit made saving for a home nearly impossible.

“Childcare just kind of set me up for financial distress for years and years to come.”

School district loyalty adds pressure

Pessin wants to stay in the Lutherville-Timonium school district but estimates a house would cost her six hundred to seven hundred dollars more monthly than her current rental apartment.

HOA fees scare off buyers

Pessin considered buying a condo but worried about homeowners association or condo fees adding to her financial stress. She wants policymakers to create smaller, cheaper housing options.

“The vast majority of us are in a position where we really can't save.”

Maryland needs policy solutions

Buyers and sellers are calling for smaller, less expensive housing stock, statewide school investment, and support for working parents to make homeownership achievable again.