Maryland’s real estate landscape is experiencing significant changes. Two noteworthy trends—rising international investment and the emergence of the so-called “nepo-buyers”—are gaining attention nationwide. Here’s what’s happening and how it could impact your real estate journey in Maryland.

🌎 Trend 1: Record Surge in International Homebuyers

Across the United States, home purchases by international buyers have jumped dramatically, up by 44% this year alone. Many of these buyers pay in cash, often targeting luxury and premium properties driven by factors such as favorable currency exchange rates, global economic conditions, and the stability of the U.S. housing market.

In Maryland, international investors typically focus on luxury markets like Annapolis, Bethesda, and premium neighborhoods around Baltimore. These international purchases can boost local property values and create jobs through renovation projects, property management, and related services. However, this increased interest can also make affordability challenging for middle-income and first-time homebuyers, especially in highly desirable locations.

👪 Trend 2: Rise of “Nepo-Buyers” (Family-Assisted Buyers)

Another emerging trend in today's market is the rise of “nepo-buyers”—younger homebuyers, usually Millennials or Gen Z, who receive substantial financial assistance from their families to enter the housing market. Family assistance can take various forms, including gifted down payments, co-signed mortgages, or outright financial backing.

Nationally, nearly 38% of homebuyers under the age of 30 now receive financial assistance from family. In Maryland, particularly in high-cost areas such as Montgomery County or regions close to D.C., such family assistance can often make the critical difference between securing a home or missing out entirely.

📍 What These Trends Mean for Maryland

For Sellers:

• High-end homes and those in sought-after neighborhoods have become especially attractive to international buyers, who often seek stable investments and premium properties.

• Properties priced at mid-levels may increasingly attract younger buyers with family support, transforming seemingly unqualified buyers into strong contenders.

For Buyers:

• Middle-class and first-time buyers without family assistance might face increased competition, especially in premium markets, but opportunities remain in more affordable suburban communities such as Catonsville, Glen Burnie, and Laurel.

• Buyers should consider local housing assistance and financing options, including state and city programs, to help offset the competitive advantages of cash-rich or family-assisted buyers.

✅ Action Steps for Buyers and Sellers in Maryland

Buyers Should:

• Broaden their search area to include emerging neighborhoods or suburban locations outside highly competitive city centers.

• Investigate local assistance programs such as first-time buyer grants, down-payment assistance, and special financing options available in Maryland.

• Develop flexible purchasing strategies and be prepared for competition, especially from international and family-assisted buyers.

Sellers Should:

• Focus marketing efforts on highlighting unique property features that appeal to high-end international buyers or family-assisted buyers, such as proximity to desirable schools, parks, and lifestyle amenities.

• Partner with real estate agents who have experience in premium markets and connections with potential international or well-supported buyers.

Both Buyers and Sellers Should:

• Clearly structure and document any family assistance to ensure it meets lending and tax requirements.

• Educate themselves on the local market trends and understand how these shifts might impact financing, appraisals, and negotiation processes.

🧭 The Takeaway

While international investment and family-assisted homebuyers are reshaping Maryland’s real estate market, these trends don't signal the end of opportunity for the average homebuyer or seller. With informed strategies, expert guidance, and a flexible approach, buyers can successfully navigate a competitive market, and sellers can maximize their home's value.

Maryland’s housing market remains vibrant, accessible, and ripe with potential for those ready to adapt.