Maryland’s housing market is increasingly dominated by its oldest and wealthiest homeowners. Baby boomers – those born between 1946 and 1964 – now hold over a third of all owner-occupied homes in the state despite representing just 20% of its population. This concentration of housing wealth has reshaped market dynamics across Maryland, from Baltimore’s harbor communities to Washington’s expensive suburbs to the tranquil Eastern Shore.
The past five years have witnessed a surprising shift. Rather than the long-predicted wave of downsizing as boomers entered their 60s and 70s, many have decided to stay put, renovate their existing homes, or even outbid younger families for properties when they do move. This “aging in place” phenomenon, coupled with historically low interest rates during the pandemic, created a perfect storm of housing scarcity that sent prices surging 30-40% statewide post-pandemic.
For younger Marylanders hoping to climb the property ladder, the effects have been profound. The typical Maryland home now costs $400,000, putting homeownership out of reach for many first-time buyers. Meanwhile, retired boomers with substantial equity and often mortgage-free homes have extraordinary leverage whether they choose to stay, relocate within Maryland, or cash out and move to tax-friendlier states like Pennsylvania, Delaware, or the Carolinas.
State-Wide Trends in Maryland
Maryland’s housing market over the last five years reflects a nationwide aging-in-place trend. Baby boomers have become an increasingly dominant force in homeownership. As of 2023, boomers account for 36.7% of all homeowners in Maryland, even though they make up about 20% of the state’s population.
This share is slightly below the U.S. average (roughly 37%–38%) because Maryland has a relatively large cohort of younger homeowners (the state ranks 13th lowest in boomer homeowner share). Nevertheless, the influence of boomers is strong and growing – older Marylanders now hold a far greater portion of housing stock than a decade ago, due in part to many boomers opting to “age in place” rather than sell their homes.
This mirrors the national rise in homeownership among older adults: in 2008, Americans 55+ owned 44% of owner-occupied homes, but by 2023 they owned 54%. Maryland’s high median incomes and strong job market have attracted younger buyers, yet boomers still represent over one-third of homeownership statewide. The net effect is a tight housing market with limited turnover, as many boomers remain in long-held properties.
Low Housing Inventory
One clear pattern is historically low housing inventory across Maryland, partially attributable to baby boomers staying put. By late 2023, Maryland’s supply of homes for sale was at just ~1.4 months of inventory (far below a balanced market’s 5–6 months).
Boomers staying in their homes longer has contributed to this shortage of listings, a trend seen nationally as well. Many boomers refinanced or purchased homes when interest rates were at record lows (sub-3% in 2020–2021) and are disinclined to buy new homes at 2023’s higher rates ~7%.
With fewer older homeowners listing their houses, younger Maryland families face limited opportunities to buy, fueling competition and price growth. Indeed, Maryland’s median home sale price rose from roughly $300,000 in 2018–2019 to about $400,000 by 2023, a jump of ~30%.
This appreciation has boosted boomer homeowners’ equity, reinforcing their financial ability to stay in place or command high prices if they do sell. Overall, the past five years in Maryland show baby boomers increasingly influencing market dynamics by holding a substantial portion of homes and moving less frequently, thus shaping a landscape of low supply and high competition.
Regional Insights: Cities, Suburbs, and Rural Areas
Urban Areas
Home buying behaviors of Maryland’s baby boomers vary across the state’s diverse regions. In the greater Washington, D.C. and Baltimore metro areas, many boomers are long-time suburban homeowners who either remain in their houses or eventually downsize locally, while some choose to relocate to lower-cost areas.
In Baltimore City, fewer baby boomers purchase homes compared to younger buyers – many city transactions involve investors or first-timers, whereas older homeowners often prefer to stay in the suburbs or move out of the city. Boomers who do buy in the city tend to favor Baltimore’s more upscale or waterfront neighborhoods, often seeking condos or townhomes with amenities and walkability for retirement.
But on the whole, Baltimore’s homebuying demand skews younger, with boomers more likely to sell longtime city properties than to buy new ones there.
Suburban Migration
In the D.C. suburbs of Montgomery and Prince George’s counties, baby boomers have been a major presence in the housing market for decades. Lately, these high-cost counties have seen an outflow of older residents: some retirees are cashing out of expensive suburban homes and moving to less costly areas either in outer Maryland or out of state.
For example, Montgomery County has noted an uptick in seniors relocating to places like Frederick County (which offers slightly cheaper housing and a semi-rural feel) or even across state lines to Virginia and Pennsylvania. This migration is often driven by affordability and lifestyle needs.
Suburbs and Small Towns
Many Maryland boomers remain in suburban communities, but there is a discernible shift in where some are choosing to retire. Some inner-ring suburbs (close to D.C. or Baltimore) have started to lose boomer population due to the high cost of living – a statewide analysis found Montgomery and Prince George’s lost population to lesser-populated, lower-cost counties within Maryland in recent years.
Those who move within the state often head for quieter or more affordable locales: e.g. Carroll County and Frederick County (north and west of Baltimore) have gained some older residents, offering suburban/rural living at lower prices while still within reach of family and healthcare.
Eastern Shore and Retirement Destinations
On Maryland’s Eastern Shore, several counties have become popular retirement destinations. Areas like Talbot County (e.g. St. Michaels) and Worcester County (Ocean City area) feature waterfront amenities, small-town charm, and a slower pace that attract boomers leaving the Baltimore–Washington corridor.
These counties have some of the state’s highest median ages, indicating a concentration of retirees and empty nesters. Home purchase activity in such areas often includes out-of-town baby boomers buying second homes or retirement houses, boosting demand for Eastern Shore real estate.
Likewise, Western Maryland (Garrett County’s Deep Creek Lake region, for instance) sees boomer buyers for vacation/retirement properties, though to a lesser extent than the Eastern Shore. In these rural or resort areas, boomers inject significant cash (often from selling pricier homes elsewhere) to buy homes, sometimes outbidding locals.
Interstate Migration
A notable trend is Maryland boomers moving out of Maryland upon retirement. Data show that Maryland has experienced net domestic out-migration in the past decade, meaning more people leaving than coming. A large portion of those leaving are older adults seeking lower taxes or cheaper housing in other states.
Common destinations include Pennsylvania, Delaware, Virginia, West Virginia, and the Carolinas, all of which offer a lower cost of living or tax advantages for retirees. For example, Pennsylvania’s relatively low property taxes and Delaware’s lack of sales tax lure some Maryland retirees.
Similarly, Florida’s and the Carolinas’ warm climates and tax-friendly policies (no state income tax on pensions in Florida) have long drawn Maryland’s snowbird boomers. This outbound migration means that in Maryland’s housing data, some boomer home selling is effectively a precursor to buying homes elsewhere.
Within Maryland, the overall picture is one of boomer homeowners staying in suburban/rural areas or shifting toward more affordable regions, while the expensive urban cores rely more on younger buyers. This geographic variation underscores how local factors – taxes, home prices, and lifestyle offerings – influence boomer decisions on whether to stay put or move in their golden years.
Motivations Behind Boomer Home Buying (or Staying Put)
The Aging-in-Place Trend
Baby boomers’ housing choices from 2018 to 2023 have been driven by a mix of economic factors and lifestyle considerations. A key theme is that many boomers are choosing not to buy new homes at all – instead, they’re staying in their current homes longer than previous generations did.
A 2024 Redfin survey found that 78% of older homeowners plan to “age in place,” remaining in their existing residence as they get older. Only about 20% said they might move to a 55+ senior community, and even fewer were considering moving in with family or to assisted living.
Financial Incentives to Stay
This strong preference for staying put is largely financially driven. Having benefited from low mortgage rates and substantial home value gains, many boomers feel it makes sense to stay. They often carry low monthly housing costs (many have paid off mortgages or refinanced into ultra-low rates), and Maryland’s property tax credits for seniors and other incentives help ease the cost of staying.
By not moving, they avoid the expensive trade-down scenario where a smaller replacement home might cost nearly as much as what they’d sell their current home for. High home prices and transaction costs can make downsizing financially unappealing – “sticker shock” is stalling some would-be downsizers in expensive markets.
Mortgage rates have been another deterrent to moving: with rates around 6–7% in 2023, a boomer with a 3% mortgage has a big incentive to stay rather than finance a new purchase at double the interest rate. In short, affordability and financial incentives (low taxes on an existing home, low mortgage rates locked in, and high cost of new homes) motivate many Maryland boomers to hold onto their homes instead of buying anew.
Motivations for Buyers
For those baby boomers who are actively looking to buy homes in Maryland, lifestyle factors often top their list of motivations. Downsizing is a common goal: after children move out, many boomers no longer need a large suburban house with a big yard. They seek smaller, single-story homes or condos that are easier to maintain and navigate as they age.
Nationally, buyers 57 and older were far more likely to purchase a smaller home, whereas younger buyers traded up to bigger homes. In Maryland, this translates to boomers selling larger single-family houses and looking for ranch-style homes or condominiums (often with amenities like elevators or lawn care) in the same general area.
However, as noted, some boomers discover that downsizing doesn’t always save money – condos in walkable Maryland towns or 55+ communities can be pricey, which sometimes discourages the move.
Family and Retirement Factors
Another major motivation is retirement and family proximity. As boomers retire, they often prioritize being closer to children and grandchildren. Many Maryland boomers who relocate choose to move nearer to family – whether that means to another state or just a different county.
The National Association of Realtors (NAR) reports that baby boomers frequently sell to move closer to friends and family. In practice, a boomer couple might leave Maryland to be near adult children who have settled in, say, North Carolina, or conversely, a boomer living in New Jersey might buy a home in Maryland to be near family here.
Health and convenience also factor in: some boomers move to be near better medical facilities or to live in a community where they can walk to shops and doctors as driving becomes less desirable.
Housing Preferences
When baby boomers do buy homes, their housing preferences reflect both comfort and practicality. Many seek single-floor living, favoring ranch homes or condos with elevators to avoid stairs. They often prefer homes with modern amenities but not the upkeep of large yards – features like first-floor master suites, updated kitchens, and easy maintenance are attractive.
According to industry surveys, retired boomers often desire open layouts and accessible design (grab bars, wider doorways) so they can age comfortably in the new home.
Location Preferences
Location-wise, there’s a split in boomer preferences: some are drawn to urban or town-center environments with cultural amenities, restaurants, and hospitals (e.g. downtown Bethesda or Baltimore’s Inner Harbor condos), while others opt for the peace of rural settings (like a house on the Chesapeake Bay or in the mountains) to enjoy nature in retirement.
Community amenities are a selling point too – many 55+ active adult communities in Maryland offer clubhouses, walking trails, and social events, which appeal to boomers seeking a built-in lifestyle. It’s telling that about 1 in 5 boomers say they’d consider moving to a 55+ community, despite the majority preferring to stay put.
Market Advantages
Finally, it’s worth noting that boomers who enter the market often have an advantage: they typically come with substantial equity or cash from previous homes. This allows them to compete strongly for desirable properties.
In fact, boomers and millennials have recently been competing for the same types of homes, such as moderately sized three-bedroom houses. Boomers, often being repeat buyers with cash in hand, have been winning many of these bidding wars against younger buyers.
This dynamic – downsizing boomers versus first-time millennials – has been a defining feature of the Maryland market in the last few years, and it underscores how boomer motivations (e.g. finding that manageable “forever home”) can impact broader housing trends.
Statistical Overview: Home Prices, Ownership Rates, and Migration
Home Price Trends
To quantify the baby boomer home buying landscape in Maryland, here is a summary of key metrics and trends from 2018–2023:
Maryland’s housing prices climbed substantially in the past five years. In 2018, the median home sale price in Maryland was around $285,000–$300,000. By 2023, the median price reached $400,000. That represents roughly a 30–40% increase, reflective of the tight supply and strong demand.
Boomer-owned homes have appreciated greatly, boosting homeowners’ equity. For example, the average Maryland home value rose about 3–5% year-over-year in 2023 alone, despite higher interest rates cooling the market. This price growth benefits boomers as sellers, but also means downsizing or relocating within Maryland became more expensive for them over this period.
Homeownership Demographics
Baby boomers have high homeownership rates. Nationally nearly 80% of baby boomers own their home, compared to about 55% of millennials. Maryland follows this pattern – the vast majority of Marylanders aged ~60–75 are homeowners, thanks to both generational wealth and the fact that many bought homes decades ago when prices were lower.
Boomers also hold a disproportionate share of housing: as of 2023, 36.7% of Maryland’s owner-occupied homes are headed by baby boomers (people ~59–77 years old). This share has grown; in 2010 it was significantly lower when more boomers were in younger age brackets.
Meanwhile, younger generations have seen only modest gains – the homeownership rate for Maryland adults under 35 remains much lower, contributing to boomers’ large slice of the pie. Statewide homeownership (all ages) in Maryland hovers around 66%, but for seniors 65+ it’s much higher, and for under-35s it’s much lower, indicating the generational divide.
Buying Market Participation
In the early 2010s, baby boomers were buying homes at a lower rate, but this changed dramatically by the early 2020s. In 2022, boomers made up 39% of all homebuyers nationwide, overtaking millennials for the first time in nearly a decade. This trend is evident in Maryland as well.
NAR data show boomer buyers surged from 29% of buyers in 2021 to 39% in 2022 as younger buyers pulled back. Millennials (who were 43% of buyers in 2021) dropped to 28% in 2022. So compared to 2008–2017, the last five years saw boomers composing a larger share of home purchases.
Many of these boomer purchases in Maryland are second homes or relocation homes (e.g. moving from one house in Maryland to another, or coming from out of state). Boomers also represent the largest share of home sellers (around 52%) in recent years, which means over half of Maryland listings likely come from that generation. They typically have owned their homes ~10+ years before selling.
Housing Supply and Tenure
The inventory of homes for sale in Maryland hit record lows during this period. From 2018 to 2021, active listings plummeted (Maryland’s for-sale inventory was down ~36% by end of 2019 vs. prior year), and while new construction has been limited, a contributing factor is that existing homeowners (many of them boomers) aren’t moving as much.
The typical baby boomer homeowner has lived in their home for over a decade – more than half of boomers nationally have been in the same house 10+ years. This lengthening tenure means fewer turnover sales.
Maryland’s months of supply fell below 2 months during 2020–2022 and was about 1.4 months in 2023, indicating an extreme sellers’ market. Low supply pushed prices up and kept homeownership rates for younger households suppressed, reinforcing boomers’ dominant stake in housing.
Migration Patterns
Demographic shifts show Maryland’s population aging and some migration flux. The state’s total population growth stalled in recent years, partly because many boomers have been moving out upon retirement. Maryland experienced net domestic out-migration each year from 2010 through 2023, meaning more people left for other states than moved in. Older adults are a significant part of this outflow.
High housing costs in Maryland are cited as a key reason – especially for retirees on fixed incomes. Popular destinations for outgoing Marylanders include nearby states (PA, DE, VA, NC, SC) where housing and taxes are cheaper.
On the flip side, Maryland does see some inbound migration of older folks from even pricier areas: it gained residents from New York, New Jersey, and D.C., who find Maryland slightly more affordable yet still close to urban amenities.
Internal Migration Trends
Within the state, there’s a pattern of migration from higher-cost counties to lower-cost ones. For example, Baltimore City, Montgomery, and Prince George’s County all lost net population to counties like Anne Arundel, Carroll, or Frederick in the late 2010s.
Many of those moving are older homeowners seeking cheaper property taxes or a cash windfall by selling in a hot market and buying in a cheaper one. Thus, while Maryland retains a large boomer homeowner base, some regions are greying (rural retiree hubs) while others are seeing an exodus of seniors.
Housing Type Preferences
Though harder to quantify, housing type data reflect boomer choices. In Maryland’s home sale records, there was increased demand (and rising prices) for condominiums and smaller single-family homes in 2018–2023, consistent with downsizing trends.
New home builders in Maryland also responded by offering more one-level living options knowing boomers prefer them. Anecdotally, many 4-bedroom suburban homes sold in this period were purchased from boomers by younger families, while boomers themselves often bought either new construction in 55+ subdivisions or moved to existing smaller homes.
The average distance moved by boomer buyers has grown – younger boomers (late 50s–60s) who bought homes moved a median of 90 miles from their prior home (often out of state), and older boomers (70s) moved ~60 miles on average, reflecting a willingness to relocate further for the right home or community.
Comparison to 2008–2017 Trends
The last five years have seen some clear shifts in baby boomer home buying patterns compared to the prior decade (2008–2017). Boomers today hold a larger share of homes and are more active as buyers than they were in the 2010s.
During 2008–2017, many boomers were in their peak earning years or early retirement, and the expectation was that they would gradually downsize and free up housing (“silver tsunami”). However, the data shows a slower transition than anticipated.
In fact, between 2008 and 2023, the homeownership rate of Americans aged 55+ jumped dramatically (from 44% to 54% of all owners), while homeownership for the 35–54 age group fell (42% to 34%). This indicates that boomers not only held onto homeownership through the Great Recession, but increased their share afterward – partly because younger Gen X and millennial buyers were hit harder and delayed.
Shifting Buyer Demographics
In Maryland specifically, the 2010s saw millennials ascend as the top homebuying group, especially by the mid-2010s when the economy recovered. From 2014 through 2021, millennials were the largest cohort of buyers nationally, which was reflected in Maryland’s booming first-time buyer programs and urban revival in places like downtown Baltimore.
Baby boomers in that era were often sellers more than buyers, as some took advantage of rising prices to downsize or relocate. But fast-forward to 2018–2023, and boomers have reclaimed the spotlight: by 2022 they surpassed millennials in the homebuyer mix.
The spike in boomer buying in the early 2020s (39% of U.S. sales in 2022 vs. just 22% a decade prior) is a stark contrast to the previous decade’s trend.
Market Crash Recovery Impact
Several factors explain how 2018–2023 diverged from prior years. The housing market crash of 2008 had initially trapped some boomers who postponed retirement moves due to lost home equity.
As the market recovered in 2013–2017, those boomers began to sell and move – we did see downsizing then, but it was modest. By the late 2010s, many boomers had decided to delay selling and stay put longer, a choice cemented by the ultra-low interest rates and pandemic-era dynamics of 2020–2021.
This is a notable change from, say, 2008–2012 when downsizing was often driven by economic necessity; in 2018–2023 it became more of an option weighed against other lifestyle factors.
Rise in Aging in Place
Aging in place has become far more prevalent now than a decade ago. In 2008–2017, boomers commonly talked about moving to Sunbelt states or retirement communities. In 2023, surveys show over three-quarters plan to stay in their current home for as long as possible.
This attitudinal shift means the big “wave” of boomer listings that some analysts expected by the late 2010s has largely been delayed. Instead of a flood of inventory, Maryland has seen boomer-owned homes not hitting the market, which is almost the opposite of earlier predictions.
Intergenerational Market Competition
Another difference is in intergenerational competition and housing types. In the late 2000s and early 2010s, boomers were mostly in a different segment of the market than first-time buyers (for example, they were buying condos in Florida or smaller new builds, while millennials were snapping up starter homes).
Now, there is much more overlap in what boomers and younger buyers want, and thus more direct competition. The typical home purchased in 2022 was ~1,800 sq ft with 3 bedrooms – a size equally attractive to a retiring boomer couple and a young family.
This convergence has been more pronounced post-2018; previously, boomers might have opted for age-restricted communities or far-away retirement locales, markets that didn’t conflict with first-time buyer demand. Today, many Maryland boomers are choosing mixed-generation suburbs or popular small towns, contributing to competition and driving up prices in areas that were once entry-level markets.
Decreased Mobility
Baby boomer mobility has also declined compared to the 2008–2017 period. Census data show that only about 5% of households age 65+ changed residence in a given year around 2016–2021, whereas younger adults moved at three times that rate.
Boomers are less inclined to relocate now than ten years ago, reflecting greater satisfaction with aging in place or lack of suitable alternatives. During 2008–2017, some boomers did make big moves – for instance, selling Maryland homes to retire to the South – but a growing number are now staying within the state or delaying moves.
Maryland’s net outflow of retirees accelerated slightly after 2018, yet it’s worth noting many boomers had already migrated out in prior years; those remaining are more rooted than ever.
Homeownership Resilience
In terms of homeownership rates, Maryland’s boomers actually increased their rate over the past decade (helped by the strong recovery in home values), whereas the prior decade (2000s into 2010s) saw some boomer homeowners falter due to the recession.
By 2023, a larger proportion of boomers owned homes than in 2010, and they owned more homes outright. This contrasts with the previous generation at similar ages – the Silent Generation had downsized more by their late 60s/70s.
Boomers are unique in that many are simultaneously owners and buyers (some buy second homes before selling the first, etc.), giving them outsized influence.
References
- “Boomers Own 36.7% of Maryland Homes, 13th Fewest in U.S.” Deep Creek Times
- “‘Til Death Do Us Part: More Than Three-Quarters of Baby Boomers Plan to Stay In Their Home As They Grow Older” Redfin News
- “2023 Home Buyers and Sellers Generational Trends Report” National Association of Realtors
- “Maryland State of the Economy 2023” Office of the Comptroller
- “Baby boomers overtake millennials as prime homebuying generation as first-time buyers get sidelined” Baltimore Business Journal
- “Maryland Housing Beat” Maryland Department of Housing and Community Development
- “Annual Housing Stats – 2023” Maryland REALTORS
- “Sticker shock stalls downsizing boomers” CNBC
- “Retirement Communities Built for Boomers Have New Vibe” AARP
- “Housing Trends in Baltimore” The Robinson Appraisal Group, LLC
- “Baby Boomer-Dominant Housing Markets [2024]” Construction Coverage
