Carmody Hills, platted in the 1930s, is one of several subdivisions constructed in the early to mid 20th century around the Town of Seat Pleasant.

The early 20th-century communities were fostered by the Chesapeake Beach Railway (1898) and the Washington, Baltimore and Annapolis Electric Railroad (1908).

As the popular mode of transportation shifted from streetcar line to the automobile in the 1930s and 1940s, highways gave suburban residents access to the city.

In the immediate post-World War II period, vacant lots within the established residential blocks were developed.

Code enforcement, as well as street paving and drainage, encouraged the construction of new houses in the 1970s in areas of the community previously inaccessible.