Baltimore Multifamily Market
2024 Investment Forecast
Apartments Absorb Latent Housing Demand,
Sustaining CBD Investment
Tight single-family market fuels Class A rental demand. Baltimore’s for-sale housing inventory fell considerably in 2023, keeping home prices across the metro elevated. The local gap between an average monthly mortgage payment and the mean multifamily Class A rent has grown past $780 as a result, inverse from the pre-2022 trend, when home mortgage payments were comparatively more affordable. Higher homeownership barriers have already helped reverse multifamily net relinquishment from 2022, as net absorption returned to positive territory last year. Much of this re-instated demand is being hosted by Class A rentals in Downtown Baltimore. An over-5 percent gain in local stock during 2023 motivated many operators to increase concessions, enabling recently-built properties here to attract greater levels of rental demand. This trend and moderating rent growth will likely define the multifamily landscape during 2024, as the core welcomes over 1,000 additions for the second consecutive year. The return of multiple employers to the CBD will provide additional tailwinds for these builds, as their hiring activity will increase the local professional services renter base. Representing the largest of such, the Maryland Department of Health and the Maryland Department of Labor relocate to the core later this year, while T. Rowe Price sets up a 550,000-square-foot headquarters nearby in Harbor Point this May.