Do we stay in DC or move to Baltimore?

[Anonymous]

My job is moving fully remote. My DH's job is currently DC-based but is moving to part-time remote after Covid and has a large Baltimore office. We are contemplating moving to Baltimore because we are exhausted by the COL in DC. We love the city a lot and have been here for 15 years, but think we might be ready for a change of pace.

When we look at real estate in Baltimore we get excited -- we can afford so much more house there and even factoring schools, we'd have lots of options in our target neighborhoods. It could be a huge lifestyle upgrade in terms of square footage and other amenities (outdoor space, parking, etc.) and cost us less per month than the mortgage on our current condo.

We also like Baltimore and have spent a lot of time there (DH went to Hopkins) and feel like we could be happy there. Schools are tricky but we are currently zoned for a frustratingly struggling IB school in DC. And in Baltimore, private school might actually be an option because we'd have more money and the schools are less expensive than in DC.

Here's the sticking point: our DC condo continues to appreciate in value and will likely go up even more in the coming years thanks to nearby development. But when we look at Baltimore homes, many of them are selling at or lower than what they sold for 4, 6, 8 years ago. That's so different than the DC market that it scares us, and has us reconsidering this plan altogether. It would be one thing if we could at least guarantee our house would hold value, but the idea of selling for a loss in 10 years is scary -- it is not an inconsiderable percent of our overall assets.

So my question is: would we be crazy to leave our small-ish but aggressively appreciating condo in DC for a much bigger and nicer townhouse or SFH in Baltimore, knowing that it might be a bad investment longterm? Has anyone done anything like this? Are there areas of Baltimore that are a hedge against that kind of depreciation?

[Anonymous]

Rent out the condo and buy in Baltimore

[Anonymous]

Neighborhoods in the city of Baltimore have pretty stagnant pricing, but suburban neighborhoods just over the county line (with highly rated public schools) have gone up in price. Our neighborhood certainly has.

[Anonymous]

Anonymous wrote:Rent out the condo and buy in Baltimore

Yep, this! The rent on your DC condo might even cover a good chunk of your B'more mortgage. Be sure that you have a good real estate person -- since some areas of Baltimore have some quirky features. (Or had. I don't know if things like ground rents are still an issue.) What areas are you interested in? I wonder if you would like Canton?

[Anonymous]

I grew up in a Baltimore suburbs and went to a Baltimore prep school. Later, lived in the city for a few years when DH and I had split commutes between DC and Baltimore.

I think there are a lot of pluses in living in Baltimore, though—and I’m sure you’ve heard this/know this already—be sure to consider taxes as you look at COL. It still doesn’t compare to DC IMO, but should be mentioned.

Happy to field any questions about neighborhoods, etc.

[Anonymous]

Do you have to sell the condo?

The suburbs of Baltimore in HOCO have increased in value

[Anonymous]

Anonymous wrote:Do you have to sell the condo?

The suburbs of Baltimore in HOCO have increased in value

This is true and HoCo’s real estate values have long been very strong, but HoCo is worlds away from Baltimore in regard to culture and also quite a bit more expensive as a general rule. Likely mostly because of the great schools. Get out to Western Howard County and you can quickly find yourself back in DC price-territory.

OP, Catonsville has its own cute little downtown and some darling homes along with a good elementary school. Super easy ride into Baltimore for date nights and also right next to BWI to get into DC on the MARC or Amtrak.

[Anonymous]

If you think you'd be happy in Baltimore, I'd rent out the D.C. condo and rent in Baltimore for at least 6 months to a year before buying there. Visiting and going to school in Baltimore is quite different than raising a family there full-time.

As you know, there are many reasons why the COL is so drastically different between D.C. and Baltimore.

[Anonymous]

Baltimore taxes are ludicrous and go a long way toward erasing the COL benefits there compared with DC.

[Anonymous]

Anonymous wrote:Do you have to sell the condo?

The suburbs of Baltimore in HOCO have increased in value

Howard County functions more like a suburb of D.C. than a suburb of Baltimore (although it certainly has people who commute to either city). I'd be more curious how the true Baltimore suburbs are faring (e.g., Baltimore County, upper Anne Arundel, etc.).

[Anonymous]

I've lived in Baltimore and DC and live in Annapolis now. The house value appreciation problems are very real and why we never bought there.

[Anonymous]

Look into real estate taxes because they are extremely high in Baltimore.

[Anonymous]

Besides renting out your condo in DC, you could also just buy less house in Baltimore or Baltimore County and invest the difference. This is what we did when moving from DC to Baltimore and it worked out well. The area just north of the city (Ruxton/Stoneleigh/West Towson) is a great place to raise a family.

[Anonymous]

I'd look into just across the city line into Towson. Particularly Ruxton and West Towson (21204) and Stoneleigh (21212). Areas zoned for Towson HS, especially with Stoneleigh, Rodgers Forge and West Towson elementaries. You get a lot of the charms of North Baltimore but with county taxes and schools. Prices are slightly higher in the county but not drastically higher than comparable houses in the city. The real problem is the inventory. Very limited and good houses sell very quickly. But houses do get listed so you will find something with patience.

Inside the city, Roland Park holds its value as does Homeland. Waterfront has really struggled with appreciations and even losses, as you likely noticed. Guilford is hit or miss.

Nowhere in Baltimore, city or burbs, will ever see the appreciation you find in DC. But that's ok. Buy a house you can comfortably afford and just plow the rest into the markets.

[Anonymous]

PP here.

Inside the city, the Roland Park EM/MS has a great reputation and holds its ground against the county options. Many Hopkins parents. Great neighborhood. We know plenty of people with kids there and they're parents with degrees from Ivy colleges. Big complaint is overcrowded and many do move to privates for middle and especially HS, but Baltimore does offer good tracks for public HS, if you navigate it carefully.

You'll find Baltimore (city and burbs) much more relaxed than DC. North Baltimore and inside the beltway Towson are great places to live at a fraction of the price of CC or Bethesda.