If you’re entering the real estate game in 2025, chances are you’re hearing the same alarming headline: starter homes are vanishing. That trend wasn’t created overnight—it’s the result of soaring demand, tight supply, and aggressive investor buying. But don’t let the headlines scare you off. Here’s what you need to know—and how to win—right here in Maryland.

🌍 What’s Going On Nationally

According to CNBC, starter homes—the traditional stepping stone for first-time buyers—are becoming rarer. Inventory is drying up in many markets, and remaining homes are often swept up by cash‑buying investors  . Meanwhile, households that once entered the market are left renting much longer, creating a record-low percentage of first-time buyers.

📉 Maryland Market Snapshot

• Inventory is tight, especially under $400,000.
  
  

• Home prices continue to appreciate, particularly in starter‑home–friendly suburbs.
  
  

• Investor activity is rising, limiting affordable options but also opening opportunities in overlooked areas.
  
  

🧭 What Buyers Can Do Right Now

1. Expand your geographic search.

Look outside the immediate city. Neighborhoods like Catonsville, Laurel, Glen Burnie, and Upper Marlboro still offer affordable starter homes under $350K, with commuting options and school zones that rival pricier Baltimore County or Howard County areas.

2. Get creative with financing.

Grants and down-payment assistance programs—federal, state, and county—can help offset costs. In fact, up to 80% of first-time buyers qualify, but many never use these options  .

3. Consider fixer-uppers.

Perfect move-in ready homes are getting scooped up quick. Homes with cosmetic or light repairs can be a way in. Renovated wisely, they can build equity fast.

4. Work with experienced local teams.

Agents and lenders who know Maryland’s micro‑markets can spot off‑market opportunities, grant-eligible deals, or scheduled incentive boosts.

5. Don’t wait for rates to drop.

Mortgage rates may stabilize over time, but the real issue is supply, not rates. Buying now might mean locking in a home before prices climb higher due to persistent demand.

✅ Why There’s Still Hope (Especially In Maryland)

• Moderate price growth: Starter-home prices are still lower than coastal or major metro areas.
  
  

• Solid buyer-aid programs: Maryland remains one of the strongest states for first‑time buyer assistance.
  
  

• Lifestyle draw: Areas near DC, BWI, and Baltimore offer a perfect blend of affordability, employment hubs, and amenities.
  
  

💡 Final Word: Don’t Let Headlines Hold You Back

Yes—starter homes are harder to find. But with the right strategy—broadening your search, leveraging assistance, partnering with pros—you can still break in. Waiting for a perfect scenario only gives investors more time to buy up the inventory.

Maryland is still a place where people build long-term wealth. A manageable entry today can lead to a future filled with equity growth and home stability.