Market Report
Baltimore Multifamily Market Report
1Q 2026
Vacancy Tightens Even as Impact
of Federal Downsizing Begins to Appear
CBD seeks equilibrium as city vacancy compresses. Though exposed to federal downsizing, Baltimore fared better than Washington, D.C., in 2025. Moving forward, while net job losses will likely be avoided, modest local employment growth may impact apartment demand. Submarkets surrounding the core are well positioned to tackle potential headwinds, as vacancies here fell by more than 100 basis points last year. Outlying suburban communities like Columbia and Towson are also in a favorable spot, as they entered 2026 with the lowest vacancy metrics. In the city center, vacancy was essentially unchanged last year, even though local inventory increased roughly 4 percent. Still, Class C vacancy has been elevated here since 2024, at around 9 percent to start the year, compared to a Class A measure closer to 4 percent. Amid economic volatility, demand for lower-cost downtown rentals may improve in the near term, aiding the submarket’s overall vacancy rate.
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