Baltimore, Maryland Market Affected By Riots

11 Replies

Hello Everyone,

I am sure everyone is aware of the riots and protests going on in Baltimore City currently. Do you think that the violent riots and protests occurring in the City will poorly affect the real estate investing market in Baltimore Maryland and the counties surrounding it?

@Lukasz Kownacki

Counties will be fine. Some parts of the city will suffer, yes. But Sandtown/MonDawMin were already pretty problem-ridden areas. The violence we've seen today is not suddenly appearing out of nowhere. 

unfortunatly these are the areas were rentals are prevalant and out of state investors have no clue... 

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

Good topic. I see things more political now, in being part of this forum and growing in my REI education. How things like social unrest can bring irreparable damage to my business if I invest poorly. Having said that how can we predict a spontaneous event like a riot.

One might jump on an opportunity to buy a vacation condo on the same block as the arena or the big stadium and unbeknownst to him/her when the hometown boys win the big game the obligatory riot must follow. Sounds like a lightning strike, I think we have all bought into the media machine in our own way and I see how we can be caught up in the fuss of a little noise.

 I always see the college riots in the college towns bounce right back no harm no foul.

Riots are not new, they have gone on for years and this is not the first one for Baltimore or other major cities.  This is not the first such event, we will recover and continue on.  Keep investing.

John Moore, John Moore Homes | 570 620‑8080 | http://www.johnmoorehomesllc.com

It sure can't help Baltimore, there's no denying that.  I avoid and would not invest in West Baltimore now or ever.  Too much crime, blight, and open air drug markets that 99% of investors want no part of.  Even in the more stable areas like Canton and Fells Point, there were some issues last night, and things like this not only scare away potential renters, it scares away investors (residential and commercial).  Baltimore has come a long way in the last 15 years, though I fear what we've seen this week will undo a lot of that progress.  There will still be those areas of the city that are pretty stable, and people want to live in.  But people will want to live and invest in those pockets only, as opposed to spreading into those less stable areas of the city that really need investors.  That spread was starting to happen more and more, now I think investors will be a lot more hesitant.  

@Jay Hinrichs

"unfortunatly these are the areas were rentals are prevalant and out of state investors have no clue..."

Sorry, what? Rentals are prevalent all over Baltimore, not just in those areas, not by a long shot. Baltimore has some of the best investment returns in the US. That is why out-of-town investors own there. I agree with you that folks who are not familiar with the landscape in Baltimore can get into a bad situation. I think that can happen anywhere, though.

@Rob Gribben

Hi, how are you. Actually the news was pretty good today. People from all over town came down to the affected areas with shovels and brooms and cleaned up the streets. I'm not aware that has ever happened before. 

Now, the deep-rooted problems aren't solved in that neighborhood where the trouble started. That has been a tough part of town for about as far back as I can remember--and I grew up in Baltimore. I don't buy in war zones, I'm too much of a coward, but I know people who do, and they get good cash flow and ROI. Who am I to judge?

Nancy Roth

@Nancy Roth One can only appreciate the transparency. Thank you!

Originally posted by @Nancy Roth :

@Jay Hinrichs

"unfortunatly these are the areas were rentals are prevalant and out of state investors have no clue..."

Sorry, what? Rentals are prevalent all over Baltimore, not just in those areas, not by a long shot. Baltimore has some of the best investment returns in the US. That is why out-of-town investors own there. I agree with you that folks who are not familiar with the landscape in Baltimore can get into a bad situation. I think that can happen anywhere, though.

@Rob Gribben

Hi, how are you. Actually the news was pretty good today. People from all over town came down to the affected areas with shovels and brooms and cleaned up the streets. I'm not aware that has ever happened before. 

Now, the deep-rooted problems aren't solved in that neighborhood where the trouble started. That has been a tough part of town for about as far back as I can remember--and I grew up in Baltimore. I don't buy in war zones, I'm too much of a coward, but I know people who do, and they get good cash flow and ROI. Who am I to judge?

Nancy Roth

 This often happens.  It is only reported when it fits the media's agenda.  

About 10 years ago, my father was convinced that the wave of reinvestment was going to spread from I83, through Reservoir Hill, all the way to Mondawmin. Shortly thereafter, Target opened up at Mondawmin Mall. Overwhelmingly, the riots have been condemned. Citizen-leaders were out last night in full force telling people to go home. I think this might scare some investors away, but the majority won't be phased. This is a speed bump, and, strangely enough, might have  a positive effect going forward as we begin to have a real conversation about sources of anger in these neighborhoods.

Originally posted by @John Moore :

Riots are not new, they have gone on for years and this is not the first one for Baltimore or other major cities.  This is not the first such event, we will recover and continue on.  Keep investing.

The riots of 1968 in Baltimore had a significant impact on the city. I don't think these riots will have as big of an impact, but they could on a smaller level in smaller pockets of the city. I suppose how far the riots go will determine the ultimate impact. Violence of any kind never tends to have a positive impact on trying to present an investment property in a positive light. How long-lasting and widespread this impact is depends on many factors.

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