Baltimore Multifamily Report – August 2023

In the wake of a challenging winter, the Baltimore multifamily market is showing promising signs of recovery. Rates are on the upswing, and occupancy is gradually picking up. This August 2023 report highlights key trends and developments in the Baltimore multifamily real estate sector.

Rent Increases Gain Momentum

The average rent in Baltimore has witnessed a positive trend, with a 50 basis point increase on a trailing three-month basis through June. This uptick in rental rates is a welcome sign for both investors and tenants alike.

Occupancy Stabilizes

While occupancy in stabilized assets experienced a 1.0 percent decline over the past 12 months, it's worth noting that this represents an improvement from the 1.4 percent decrease recorded in February. As Baltimore's economy continues to rebound, we can anticipate further improvements in occupancy rates.

Economic Resilience

Baltimore's economic resilience is evident in the 31,300 jobs added to the metro area in the 12 months ending in April. This 1.2 percent expansion reflects the city's ability to weather economic challenges, particularly in comparison to other coastal markets. With an unemployment rate of just 2.2 percent as of May, down 150 basis points in 12 months, Baltimore is making a strong recovery.

Prominent Developments

Several significant developments are contributing to Baltimore's economic resurgence. Projects like Baltimore Peninsula and Tradepoint Atlantic are moving forward, bringing investment and opportunities to the region. Notably, the $200 million renovation of CFG Bank Arena has been successfully completed, adding to the city's appeal.

Real Estate Transactions

While there was a decrease in the volume of rental community transactions in the first half of 2023, totaling $235 million, this can be attributed to a high benchmark set in the previous year when $1.1 billion worth of assets changed hands. However, it's essential to highlight that completions have seen a sharp increase, with 1,275 units delivered in 2023 through June, a 22 percent increase from the previous year. Additionally, 12 projects broke ground, comprising 2,346 units. This marks a substantial jump from 2022 when work began on only 630 apartments during the same period.

In conclusion, the Baltimore multifamily market is in a state of recovery, with positive indicators such as rising rents, stabilizing occupancy rates, and a resilient economy. As the continues to attract investments and major developments, it remains an area of interest for real estate professionals and investors looking to capitalize on its potential.

Read the full Yardi Matrix Baltimore Multifamily Market report.