High-income households (earning $500,000 or more per year) play a unique and influential role in Maryland’s housing market. Take a look at how these top-earning buyers are shaping Maryland’s real estate market, what properties they’re buying, how they’re financing their purchases, and more.
Types of Homes Purchased by High-Income Buyers
Maryland’s $500K+ earners predominantly purchase upscale properties, with a strong preference for spacious single-family homes. Many of these homes are luxury residences featuring extensive square footage and high-end amenities. In suburban counties like Montgomery and Howard – which boast some of the nation’s highest incomes – it’s common to find executive buyers purchasing estate-style single-family houses with 4+ bedrooms and premium finishes.
In Baltimore City, the priciest sales in 2023 included several large detached homes in affluent neighborhoods, as well as a few upscale Inner Harbor condos. This mix illustrates that while detached houses remain the primary choice, there is also a niche market for luxury condominiums and townhomes among high earners, especially those seeking low-maintenance living or an urban lifestyle.
Luxury condos and townhouses tend to appeal to a subset of wealthy buyers – often older professionals or retirees downsizing from suburban homes. These properties offer upscale features like doormen, concierge services, and waterfront views without the upkeep of a large house. In Downtown Baltimore, Harbor East, and similar areas, new high-end condo developments have attracted affluent empty-nesters who want modern amenities and walkable convenience.
Waterfront and resort-area homes are another category of interest. Some top earners purchase prime waterfront properties along the Chesapeake Bay and in coastal communities. Exclusive enclaves like Gibson Island (an island community in Anne Arundel County) exemplify this trend – Gibson Island is “Maryland’s most exclusive address, with an average home value of $2.8 million in 2025 – nearly double its next nearest competitor”. Its gated, amenity-rich community (yacht club, golf course, etc.) and scenic waterfront estates make it a magnet for wealth.
Housing Size and Primary Residence Preferences
Overall, most $500K+ households buy detached single-family homes as primary residences. They often seek expansive homes (many exceeding 4,000 sq. ft.), which aligns with national patterns – for instance, Generation X buyers (ages ~45–59, a group overlapping heavily with $500K earners) purchased the largest homes (median 2,000 sq. ft.) of any generation in 2023. High-income Maryland buyers mirror this tendency, favoring space and privacy. The small segment opting for luxury condos/townhomes tends to be those valuing location or lifestyle convenience over sheer size.
Upsizing, Downsizing, and Relocation Trends
Whether high-income buyers have been upsizing or downsizing in 2018–2023 often depends on their life stage. A notable share of these buyers were Baby Boomers (born ~1946–1964) entering retirement or late-career phase. Many boomers with high incomes actually chose not to move at all – a trend of “aging in place.” Surveys in 2023–24 found that roughly 78% of older homeowners plan to remain in their current home as they age, largely because of financial incentives (low existing mortgage rates, property tax credits for seniors, etc.).
Migration Patterns of Wealthy Retirees
Among those high-income boomers who did move, two patterns emerged: relocation-driven moves and strategic downsizing. Some late-career affluent Marylanders relocated out of state upon retirement in search of lower costs, while others stayed in-state but downsized to upscale condos or smaller homes for convenience.
Maryland’s data shows a steady net outflow of older, high-income residents to lower-cost states throughout the past decade. Many “more affluent, late-career individuals leave the state primarily to look for greater affordability” – for example, retirees moving to Florida, the Carolinas, or Delaware to enjoy lower taxes and cheaper living.
Within-State Movement
Within Maryland, wealthy downsizers often targeted leisure-oriented communities. Eastern Shore towns like St. Michaels in Talbot County or Ocean City in Worcester County attracted affluent retirees from the D.C.–Baltimore corridor. These areas, known for waterfront charm and slower pace, saw boomers injecting cash from selling expensive suburban homes and buying retirement houses or second homes locally. Western Maryland’s Deep Creek Lake region experienced a similar influx on a smaller scale.
Younger High-Income Buyers
Meanwhile, younger high-income buyers (Gen X and older millennials) were more often upsizing. Many in this cohort are dual-income professionals in their 30s or 40s who saw substantial income growth and family size changes during 2018–2023. They often sold a starter home or condo and moved to larger houses to accommodate growing families, home offices, and lifestyle upgrades.
Impact of the Pandemic
This trend was supercharged by the pandemic: in 2020–2021, with remote work and lifestyle changes, even some city-dwelling affluent professionals sought to upsize to bigger homes with more land. According to the Maryland State of the Economy report, during the peak pandemic period “remote work, low-interest rates, and heightened demand for larger homes and greater access to the outdoors motivated out-of-towners to buy homes in more rural and ex-urban parts of Maryland”.
Essentially, high-earning buyers from dense urban areas (including Washington D.C. and New York) looked for spacious properties in Maryland’s suburbs and countryside. Some made permanent moves to these larger homes, while others bought second residences. The result was an upsizing wave: large houses with amenities like home offices, pools, and big yards became hot commodities among those who could afford them.
Corporate Relocations and In-Migration
Corporate relocations also played a part. For instance, Maryland’s biotech and defense sectors attracted some executives into the state. Early-career high earners have moved into Maryland from pricier metros: “early-career individuals leaving expensive urban centers such as NYC and D.C. come to Maryland for its more affordable housing, high-wage job market, and good schools”. This influx of younger talent helped replenish some of the outflow of older affluent movers.
Financing Trends: Mortgages, Jumbo Loans, and Cash
Financing patterns for high-income home purchases in 2018–2023 reflected these buyers’ greater resources and the evolving market conditions. A striking trend was the increased propensity for all-cash purchases at the high end. With substantial incomes (and often significant savings or stock market gains), many $500K+ earners bypassed mortgages altogether when buying homes, especially in the later years of this period.
The Rise of Cash Purchases
Cash is king in the luxury market, as a mid-Atlantic housing report notes: by 2022 roughly one-quarter of luxury homes were purchased with cash, and by early 2024 nearly one-third were cash sales. In the Washington D.C. region (which includes Maryland suburbs), all-cash purchases reached record highs – for example, about 25% of high-end sales in D.C. were all-cash in 2023, up from under 20% pre-pandemic.
This surge in cash buying is attributed to wealthy buyers leveraging stock equity and wanting to prevail in competitive bidding wars. Cash offers are often more attractive to sellers, and affluent buyers used that to their advantage in Maryland’s tight market.
Jumbo Loans and Financing Options
Those high-income buyers who did finance their purchases tended to make large down payments and use jumbo loans. With home prices for this cohort commonly in the $1–3 million range, their loan needs often exceeded conforming mortgage limits. Jumbo loans (mortgages above the Fannie/Freddie limits) became increasingly common.
Industry data show that jumbo loans comprised 32% of all U.S. mortgages by 2022 – up from only 19% in 2020, reaching the highest share since 2005. This reflects how rising home prices and affluent buyers’ demand pushed more financing into jumbo territory. Maryland, being a high-cost state, contributed to that trend. In fact, Maryland is one of the top states for jumbo loan originations (only California, New York, and a few others see more).
Impact of Rising Interest Rates
Rising interest rates in 2022–2023 influenced financing choices as well. When mortgage rates hovered near historic lows (2019–2021), even wealthy buyers were happy to finance purchases cheaply. Many locked in 30-year loans under 3–4% interest. But when rates spiked above 6–7% by late 2022, the calculus changed: affluent buyers reacted by shifting even more toward cash.
As one report notes, “nearly half (46.5%) of Q4 2023 luxury home purchases were all cash, up from 40% a year earlier”. High earners, less constrained by financing, could pull cash from investments or use proceeds from selling another property. This helped insulate the luxury segment from the rate shock.
When mortgages were used, they were often structured with significant down payments. Nationally, the typical buyer down payment jumped to the highest level in two decades by 2022, a sign that well-off purchasers were putting more money down.
Demographics of $500K+ Buyers (Age, Family, Professions)
Who are Maryland’s $500K+ earners buying homes? They are a select group – roughly the top 1–2% of households by income. (In Maryland, the threshold to be in the top 1% of earners is about $633,000 annual income.) These buyers tend to be middle-aged or older and highly educated, often in dual-income households.
The median age of homebuyers has been rising and hit a record high of 56 in the U.S. in recent years, showing how the market is skewing older as younger buyers struggle. In Maryland, many $500K+ buyers are in their 40s, 50s, or early 60s. They include successful professionals at the peak of their careers and recent retirees with high pension or investment income.
Household Composition
A large share are married couples, frequently with children (though often older children or college-age). High-income buyers are very likely to be married or partnered, since having two earners greatly increases household income. For example, among older millennial buyers nationally, 66% were married couples – and for Gen X and boomers (most likely to have $500K incomes), the married rate is even higher.
Many of these households are small in size – typically 2 to 4 people. It’s common to find a couple with one or two teenagers, or empty-nesters whose adult children have moved out. Thus, while they buy large homes, it’s often for reasons of entertaining, hosting family, or lifestyle, rather than because they have many young kids at home.
Education and Professions
In terms of education and profession, this cohort is the cream of Maryland’s workforce. Maryland is an extremely well-educated state – about 42.2% of adults 25+ have a bachelor’s or higher (versus 34.3% nationally) – and the highest concentrations of graduate degrees are in counties like Howard (64% with bachelor’s+) and Montgomery (60%).
The typical $500K+ household in Maryland might consist of a physician-attorney couple, a C-suite corporate executive, a successful entrepreneur, or a tech/financial professional. Indeed, data on Greater Baltimore’s top salaries underscores the dominance of medical and executive careers: in 2022, Cardiologists earned about $433,000 on average – the highest of any profession – with other specialists (surgeons, emergency physicians) earning $300K+, even exceeding the pay of chief executives in many cases.
Government and Federal Workers
Notably, the federal government and government contractors are major employers for Maryland’s affluent class. Many high-income households in the D.C. suburbs are headed by federal senior executives, defense contractors, lobbyists and consultants. For example, Montgomery County (which has the state’s second-highest median household income) is home to numerous NIH scientists, military brass, and Beltway lawyers.
In Howard County (highest median income in MD at ~$124K), a significant number of residents work in technology and defense (such as at Fort Meade/NSA, or private firms). These careers often come with salaries in the high six figures for top talent. Meanwhile, in the Baltimore area, the presence of world-class hospitals (Johns Hopkins, University of Maryland Medical Center) means many surgeons and medical leaders reside in upscale Baltimore and Howard County neighborhoods.
Regional Patterns: Urban, Suburban, and Rural Preferences
Geography plays a key role in where Maryland’s highest-income households buy homes. Maryland is a small state but with distinct regions – from the urban core of Baltimore City, to the suburban expanse around Washington D.C., to rural Western Maryland and the Eastern Shore.
Urban Areas
Surprisingly few $500K+ earners chose to buy in Baltimore City proper during this period. Baltimore City’s housing stock and lower median income (around $58K) mean that even its most expensive neighborhoods are relatively limited in $500K+ buyers (though a number of wealthy professionals do live in the city). The high-end activity that did occur in Baltimore City was focused in enclaves like Roland Park, Guilford, and the Inner Harbor.
In Washington D.C., which is just outside Maryland, wealthy buyers often consider neighborhoods in both the District and suburban Maryland interchangeably. However, within Maryland’s portion of the D.C. metro, the demand was very strong. Areas like Bethesda, Potomac, Chevy Chase, and Kensington in Montgomery County saw intense high-end market activity. These places are coveted for their proximity to D.C., top-rated schools, and prestigious addresses.
Montgomery County’s median income (~$126K) and high quality of life made it a magnet for affluent families. Likewise, Howard County (Columbia, Clarksville, etc.) attracted $500K+ earners, given Howard’s status as the wealthiest county (median ~$141K) and location between D.C. and Baltimore.
Suburban and Exurban Migration
Most high-income buyers opted for suburban living, but there was notable movement into exurban and even rural locales during 2020–2023. For example, Frederick County (exurban but growing, with good connectivity to both Baltimore and D.C.) saw increased interest. Frederick’s median income (~$116K) is high, and it experienced net in-migration, including some who left Montgomery County for more land in Frederick.
Southern Maryland’s Calvert and Charles counties also have relatively affluent populations (medians ~$128K and $116K respectively) and became alternatives for buyers seeking suburban-style homes at slightly lower prices or taxes than closer-in counties. The general pattern was: central Maryland (Montgomery, Howard, Anne Arundel) remained the core for wealthy homebuyers, but surrounding counties gained popularity as some buyers were willing to drive a bit further for a newer or larger home.
Rural and Resort Areas
A distinctive trend in this period was the growth of high-income purchases in traditionally rural vacation markets. Maryland’s Eastern Shore (Talbot, Queen Anne’s, Dorchester, Worcester counties) and Western Maryland (Garrett County) saw a boom in attention from affluent buyers, especially during the pandemic.
Real estate professionals noted that “more people – especially higher-income earners – [were] buying homes in rural Maryland”, bringing benefits like increased tax revenue to those counties. For instance, Worcester County (Ocean City) had a spike in second-home buying; statewide real estate listings jumped in 2020, “most dramatic in Garrett and Worcester” as city dwellers listed properties to move or buy second homes in those areas.
Beachfront and lakefront properties became hot commodities for Maryland’s affluent. Many of these transactions were seasonal or investment purchases rather than primary residences. Local officials, while happy with the influx of wealth, have kept an eye on the downsides – such as short-term rentals taking formerly affordable homes out of local inventory. Overall, rural resort markets turned into mini luxury havens: prices soared and inventory tightened in places like Deep Creek Lake and St. Michaels, thanks to high-end demand.
Investment and Vacation Property Purchases
While our focus is on primary residences, high-income households often have the means to purchase investment properties or vacation homes, and this segment expanded significantly from 2018 to 2023.
During 2020–2021, Maryland saw a surge in vacation home buying by affluent residents. Cooped up during the pandemic, many high earners decided to buy weekend homes where they could escape urban confines. Beach towns and mountain retreats were prime targets. For example, Garrett County’s Deep Creek Lake area (mountains) and Worcester County’s Ocean City area (beach) each witnessed a dramatic uptick.
Statewide, the number of homes listed and sold in mid-2020 jumped significantly – statewide listings spiked from about 10,900 to over 17,000, with Garrett and Worcester seeing the largest jumps. Much of this was attributed to second-home buyers (often Marylanders or nearby DC-area residents) either moving permanently or purchasing seasonal properties in those counties.
These vacation-home purchases were often all-cash deals. In traditional vacation markets, cash is even more dominant: in early 2024, over half of luxury sales in the Delmarva (Delaware/Maryland) coastal region were all-cash, and over 40% on the Chesapeake Bay Eastern Shore were cash as well.
High-income buyers used these second homes both for personal use and as short-term rentals (Airbnb/VRBO). The influx of short-term rental investment by wealthy outsiders caused some local concern – as the Comptroller’s report highlighted, many short-term rentals in rural Maryland “were once affordable housing, removing affordable rentals from the inventory”. Nonetheless, second-home buyers brought influxes of money: “seasonal homeowners and visitors… spend money that fuels local tax revenues” in those areas.
Comparison: 2018–2023 vs. 2008–2017
Finally, placing the recent trends in context, how do the homebuying patterns of Maryland’s $500K+ earners in 2018–2023 compare to the decade prior (2008–2017)? There are several key shifts as well as some continuities:
Market Conditions
The earlier period began with the housing crash and Great Recession (2008–2011), which suppressed purchases and prices, even for the wealthy. High-income buyers in that era often held off or found bargains in the bust.
In contrast, 2018–2023 saw an extraordinary housing boom (especially 2020–2022) where even luxury home prices hit all-time highs. By late 2023 the typical U.S. luxury home price was up ~9% year-over-year to a record $1.17M, and Maryland’s upscale markets echoed that surge. In short, the recent period was a seller’s market, whereas 2008–2012 was a buyer’s market for high-end real estate. Wealthy buyers post-2018 often had to compete in bidding wars (something rarely seen in the 2008–2011 trough).
Interest Rates and Financing
In 2008–2017, interest rates were generally falling or low, but lending standards were tighter right after the crash. Jumbo loans were less accessible around 2009–2012, and many high-end buyers actually paid cash during the recession simply because jumbo financing dried up. By the mid-2010s, things normalized.
However, the 2018–2023 period featured an unprecedented rate rollercoaster – historic lows by 2020, then the fastest rise in decades by 2022. High earners initially took advantage of cheap mortgages (2018–2021) and then pivoted to cash/jumbo as rates spiked (2022–2023). The net result by 2023 was an even greater share of cash purchases at the top end than a decade prior.
Home Preferences
Continuity: Both periods show that high-income Marylanders overwhelmingly prefer single-family detached homes in good neighborhoods – that didn’t change. A $500K-earning family in 2012 likely bought a similar type of property (large suburban house) as one in 2022.
Shift: However, there has been a lifestyle evolution. The 2018–2023 buyer places greater emphasis on amenities like home offices, gyms, and outdoor recreation space (partly influenced by the pandemic). Moreover, there’s more openness to city living among the wealthy now than in 2008 – the emergence of luxury condos in Baltimore and the D.C. area gave downsizers more options.
Demographics
The baton has been passing from Boomers to Gen X/Millennials. In 2008–2017, Boomers were the dominant high-income homebuyer group, as they were mid-career to late-career in those years. Millennials were mostly first-time buyers toward the end of that span.
In 2018–2023, we saw that Boomers came back to dominate in 2022–2023 (by volume of purchases, due to their ability to win bids), but many were buying second homes or relocating. Gen X (now ages 45–60) is large in numbers too and at peak earnings, so they featured heavily in this period’s move-up market.
NAR data captures this shift: in 2021, millennials were the largest share of buyers nationally at 43%, but in 2022 their share plummeted to 28%, while Boomers’ share jumped to ~39–42%. This indicates a market shift favoring older, wealthier buyers in the recent period, whereas the 2010s trend was the rise of the millennial buyer.
References
- Baby Boomer Home Buying Trends in Maryland (2018–2023)
- All cash purchases dominated D.C.’s housing market in 2024
- 2023 Top Jumbo Originators
- Luxury Home Prices Hit All-Time High As Record Share of High-End Buyers Pay Cash
- NAR Finds Typical Home Buyer’s Annual Household Income Climbed to Record High of $107,000
- Home Buyers and Sellers Generational Trends
- Greater Baltimore’s highest-paying jobs
- How much money you need to make to be in D.C.’s 1%, Maryland’s 1%, Virginia’s 1%
- These Are the 24 Highest-earning counties in Maryland
- Baby Boomers Regain Top Spot as Largest Share of Home Buyers
- Baltimore City Most Expensive Home Sales 2023
- Office of the Comptroller; Maryland State of the Economy Report, 2023
- Average House Price by State in 2024
- These are the 25 Most Expensive Towns to Buy a House in Maryland (Feb. 2025 Data)
- Investors Bought a Record 18% of Homes That Sold in the Third Quarter
