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Market Report

Baltimore Multifamily Market Report

2024 Investment Forecast

Core Rentals Absorb Latent Single-Family Demand,
Sustaining CBD Investment

Single-family crunch kickstarts multifamily demand. Baltimore’s for-sale housing inventory fell substantially in 2023, keeping local home prices on the rise. The metro’s difference between the monthly mortgage payment on a median-priced home and the mean multifamily Class A rent grew to $780 as a result last year, more-than doubling in 12 months. Higher homeownership barriers have already helped net absorption return to positive territory last year, after net relinquishment in 2022. Much of this returning demand has been hosted by Downtown Baltimore, where an over-5 percent gain in local stock during 2023 motivated some operators of Class A apartments to increase concessions and ease rents. This trend should hold into the rest of 2024, with the area welcoming the delivery of over 1,000 units for the second consecutive year. These builds should nevertheless be well-received in the long-term, as the return of multiple employers to the CBD will greatly increase the local renter base. The Maryland Department of Health and The Maryland Department of Labor will each relocate to the core later this year, while T. Rowe Price sets up a 550,000-square-foot headquarters nearby at Harbor Point this May.
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