What is the real cost of living in Baltimore, MD?

Rental prices have increased slowly but steadily in Baltimore over the past few years. As of March 2021, the average monthly rent is $1,321, but rent fluctuates across the city’s 250+ neighborhoods. Potential residents should note that Baltimore struggles with high crime rates and a poor public education system; broadly speaking, neighborhoods on the outer edges of Baltimore and particularly in the northeast tend to be safer, but crime rates vary throughout the city. 

In chic and historic central neighborhoods such as Fells Point and Federal Hill, the average monthly rent ranges between $1,800 and $2,000. Young college graduates tend to gravitate to the hip areas like Station North and Mount Vernon, where they can expect to pay around $1,500, or slightly more than the national average of $1,462. The lowest rental prices in the city, which are between $900 and $1,100, are found in residential areas on the outer edges of the city like Hamilton and Lauraville.

You don’t have to settle for an undesirable location to save money, though. Coliving with roommates through Bungalow allows you to access Baltimore’s best neighborhoods for less than you would spend on a solo apartment.

In the past five years, the median sale price of homes in Baltimore has spiked more than 20%, from $138,000 in January 2016 to around $169,000 in January 2021. However, because housing prices differ wildly across the city, the median sale price can be misleading. Real estate prices in the more sought-after neighborhoods hover around $300,000, which is much closer to the nationwide median of $272,000.

With an effective tax rate of 1.72% (after deductions and credits), Baltimore’s property taxes are considerably higher than the national average of 1.07%.

Baltimore residents living in average-sized apartments can expect to pay around $146 per month for utilities, including gas, electric, water, and garbage pickup—about  $20 less than the national average.

In a city famous for its fresh seafood—and Old Bay seasoning—dining options are reasonably priced in Baltimore. A meal for two at a full-service restaurant averages around $65, whereas in nearby Washington, D.C., or New York, a similar meal would cost between $80 and $100. For a more basic meal at a casual restaurant, diners can expect to pay around $15 per person, which is on par with the national average.

Groceries in Baltimore are also reasonable: Typical monthly costs, excluding alcohol and other extras, will run around $346, or about 1.5% more than the national average. That said, the sales tax rate is 6%, which is right on par with Washington, D.C. and slightly lower than Philadelphia’s 8% sales tax.

Baltimoreans spend more on transportation than the average U.S. citizen, so be prepared to add around $13,255 to your annual budget. Most households own one car, and about 60% of the population drives to work alone. 

Gasoline prices here are about the same as the national average, give or take ten cents. With an average commute of 30 minutes, that can add up. And auto insurance rates are much higher here than they are elsewhere—almost 50% more than the national average—partly because Baltimoreans have a reputation for being bad drivers. According to a 2017 report by Allstate, locals have about 35% more “hard-braking events” than the national average and are 140.6% more likely to make an insurance claim than the average driver.

The Maryland Transit Authority runs buses and light rail trains through the city, and a monthly pass costs between $74 and $93. A single, one-way ticket costs $1.90, which is cheaper than public transportation fares in Washington, D.C., and Philadelphia. There’s also a free shuttle that circulates along four routes in the downtown areas where parking is limited.

While prices and costs in Baltimore might be equal to or slightly more than the nationwide averages, residents here do tend to make a little more overall than they would in other places. After taxes, Baltimoreans can expect about $3,754 monthly, or about $45k per year. The average American makes $3,534, or about $42k per year. The city’s robust healthcare industry offers higher paying opportunities: a staff nurse, for example, can earn between $65k and $80k per year. Baltimore has also become a hotbed for tech start-ups, and software engineers here can earn $115k per year. 

With salaries that rank slightly above the average, an overall cost of living that falls just above average, and a wide range of housing types and prices, Baltimore, Maryland, is well positioned to welcome new residents, particularly transplants from more expensive metropolitan areas.

Spending responsibly on rent can help keep your personal finances on track. Shared housing is one of the best ways to lower your rent cost. Bungalow’s homes are designed for roommates, located in the best neighborhoods, and set up for seamless living. Whether you already have roommates or are looking for new ones, there’s a Bungalow with your name on it. Find your Bungalow.