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Market Report

Baltimore Multifamily Investment Forecast

2022 Outlook

Leasing Activity Accelerates in the Urban Core;
Out-of-State Investors Propel Deal Flow

Availability stays nears two-decade low. Baltimore's multifamily sector proved resilient during the health crisis amid one of the toughest economic stretches in the metro's history. Demand for rentals remained elevated over the past year, fueled by a resurgence of leasing activity in the CBD. As a result, metrowide vacancy contracted to the lowest rate since 2000. Maryland recently announced it will relocate 3,300 state employees to the CBD, and notable employers like T. Rowe Price have announced return to office plans, boding well for future demand in the urban core. However, population growth projections well below the national average will likely hamstring this momentum. The pace of absorption across the metro is expected to decline and place upward pressure on availability in 2022. Nevertheless, Baltimore still remains affordable relative to the Washington, D.C., market, and may attract renters seeking less expensive housing if work-from-home trends persist. Additionally, supply additions will fall 40 percent below the trailing-five-year average, which well help moderate vacancy increases this year.
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