The Complete Guide to Real Estate in College Park, MD: Living, Investing, and Selling
Updated for 2025 — Authoritative insights on property values, neighborhoods, rental markets, and infrastructure shaping the future of College Park real estate.
Introduction
College Park, MD — known as the home of the University of Maryland (UMD) — is one of the fastest-evolving real estate markets in the Washington D.C. metro area. Once dominated by student housing, the city is transforming into a balanced ecosystem of investors, families, and professionals.
This complete guide explores how UMD expansion, the Purple Line, neighborhood development, and tax incentives are shaping opportunities for those living, investing, or selling in College Park.
I. UMD’s Influence: The University’s Expanding Impact on Property Values
1.1 UMD as an Economic Engine
The University of Maryland anchors the College Park economy. Hosting more than 40,000 students and thousands of employees, it stimulates steady housing demand, particularly near campus.
Recent projects like the Discovery District have transformed the Route 1 corridor into a tech and innovation hub, increasing property appreciation rates and rental values.
Homes within a 2-mile radius of UMD have seen 45% appreciation over the past decade.
Average rent near campus: $1,200 per bedroom.
Mixed-use projects like Camden College Park drive luxury housing growth.
1.2 Redevelopment and Local Investment
UMD’s collaboration with the City of College Park has spurred redevelopment through initiatives such as College Park City-University Partnership and Route 1 Corridor Redevelopment. These projects improve streetscapes, bike infrastructure, and local retail—directly impacting real estate desirability.
1.3 Influence on Zoning and Urban Density
To balance student demand, the city enforces rental permit caps and occupancy limits in key neighborhoods, preventing over-conversion of single-family homes. This stabilizes housing values for long-term residents while keeping investor interest strong.
II. Neighborhood Deep Dive: Berwyn, Calvert Hills, Old Town, and Beyond
2.1 Berwyn: The Historic Heart
Berwyn, with its century-old bungalows and proximity to Greenbelt Metro, is popular among professionals seeking a blend of charm and convenience.
Average price (2025): $470,000
Median rent: $2,200/month
Key feature: Walkability to cafes, local schools, and Metro
Investment Tip: Properties near Berwyn Road and Rhode Island Avenue show above-average appreciation due to connectivity improvements.
2.2 Calvert Hills: Family-Friendly and Stable
Calvert Hills offers zoned residential tranquility, making it ideal for homeowners and faculty families. Large lots, mature trees, and quick access to Calvert Park enhance livability.
Best For: Families seeking long-term value and low tenant turnover.
Average price (2025): $550,000
2.3 Old Town: The Investor’s Hotspot
Home to fraternities and off-campus student rentals, Old Town is College Park’s rental powerhouse. Investors here target multi-unit conversions and shared housing, producing steady income.
Occupancy rate: 96%
Rent: $4,200–$4,800/month for 4-bed homes
Regulation: Strict code enforcement via College Park Rental License Program
2.4 North College Park & Hollywood: The Growth Frontier
North College Park combines newer developments with access to Hollywood Elementary and future Purple Line stations, making it one of the most promising zones for appreciation over the next five years.
III. The Rental Market: Regulations and Student Housing Demand
3.1 Rental License & Inspection Requirements
All landlords must obtain a City of College Park rental license, ensuring properties meet safety and occupancy codes.
Inspection Focus Areas:
Smoke detectors and egress windows
Parking compliance
Maximum occupancy and noise levels
Failure to comply can incur fines up to $1,000 per violation.
3.2 The Role of Student Demand
Despite UMD’s dorm expansions, student housing shortages persist. The majority of upperclassmen and graduate students rely on private rentals, driving consistent off-campus demand.
Rental Dynamics (2025):
Off-campus rental occupancy: 96%
Rent growth rate: 4% annually
High demand for newer, furnished units
3.3 Investor Strategies
Smart investors diversify between short-term student rentals and long-term family leases. Duplex conversions near Old Town often yield 8–10% ROI, while family properties in Calvert Hills offer lower turnover and tax stability.
IV. Infrastructure Spotlight: The Purple Line’s Impact
4.1 Overview
The Purple Line light rail will connect Bethesda to New Carrollton, enhancing access to Silver Spring, DC, and College Park. Two new stations—Campus Drive and River Road—are under construction.
4.2 Property Value Zones
Zone 1 (Campus Drive Station):
Proximity to UMD and Discovery District
Surge in mixed-use and student-oriented developments
Zone 2 (River Road Corridor):
Redevelopment into research and tech districts
Anticipated value increase: 15–25% post-2027
Zone 3 (Greenbelt Connection):
Reduced commute times to DC
Attractive to professionals seeking affordable housing
4.3 Forecast: 2027 and Beyond
Real estate within a 0.5-mile radius of Purple Line stations could appreciate 20–30% faster than the regional average over the next decade, according to Maryland Transit Authority projections.
V. Taxes and Schools: Essential Insights for Buyers
5.1 Property Taxes
Prince George’s County property tax rate: $1.25 per $100 of assessed value.
Typical annual taxes for a $500,000 home: $6,250–$7,000.
Tax Credits:
Homestead Tax Credit (limits increases on primary residences)
Maryland Homeowners’ Property Tax Credit (income-based relief)
5.2 Schools and Education
Top-rated public schools make College Park appealing for families.
Notable Schools:
Hollywood Elementary (PK–5)
Greenbelt Middle (6–8)
Eleanor Roosevelt High (STEM magnet)
Charter & Private Options:
College Park Academy (Grades 6–12)
St. Jerome Academy
Homes within these catchments command 5–10% higher resale values.
VI. Lifestyle and Community Living
6.1 Recreation and Green Spaces
College Park offers abundant parks such as Lake Artemesia, Paint Branch Trail, and Calvert Park, promoting outdoor lifestyles.
6.2 Shopping & Dining
The Route 1 Corridor features growing retail zones, restaurants like The Hall CP, and entertainment spots like Board and Brew.
6.3 Safety & Community Programs
The Neighborhood Stabilization Program maintains community diversity and curbs excessive student rental density, sustaining neighborhood harmony and real estate value.
VII. Selling in College Park: Maximizing Property Value
7.1 Best Time to Sell
Spring and early summer (April–July) offer optimal exposure due to academic turnover and relocation cycles.
7.2 Top Value-Boosting Improvements
Modernize kitchens and bathrooms.
Highlight energy-efficient upgrades and walkability.
Add curb appeal through landscaping.
7.3 Marketing Strategy
For Investors: Showcase potential ROI and rental compliance.
For Families: Emphasize school ratings and neighborhood charm.
For Student Housing Buyers: Stress location convenience and code adherence.
VIII. Investment Case Study
A three-bedroom Berwyn home bought for $310,000 in 2017, renovated for $35,000, and rented to grad students for $3,800/month was sold in 2024 for $510,000, delivering a 65% capital gain plus consistent rental income.
Key Takeaway: Combining zoning compliance, cosmetic renovation, and proximity to UMD maximizes returns.
IX. The Future Outlook
Annual growth forecast: 4–6% appreciation
Rental stability: 95%+ occupancy
Transit and tech expansion: Major catalysts for value growth
UMD’s continued growth, coupled with the Purple Line and Route 1 redevelopment, positions College Park as a long-term real estate winner in the Washington D.C. metro area.
FAQ
1. Is College Park real estate a good investment in 2025?
Yes, with consistent rental demand, infrastructure upgrades, and a growing professional population, returns remain strong.
2. What are the main neighborhoods for families?
Calvert Hills and North College Park provide top-rated schools and family-friendly amenities.
3. How do I apply for a rental permit?
Apply through the City of College Park Department of Public Services and schedule an inspection.
4. When will the Purple Line be completed?
Expected completion is 2027, significantly improving transit accessibility.
5. What factors drive appreciation near UMD?
Academic expansion, Discovery District development, and improved commuter links.
Conclusion
The real estate market in College Park, MD offers a rare balance of academic influence, urban investment, and community charm. Whether you’re a buyer seeking stability, an investor chasing yield, or a seller timing the market, understanding the dynamics of neighborhoods, permits, and infrastructure ensures smarter decisions.
As UMD continues to grow and the Purple Line transforms regional transit, College Park stands at the forefront of Maryland’s next real estate evolution.