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Market Report

Baltimore Multifamily Market

3Q 2023

Slow Labor Market Recovery Continues to
Hinder Apartment Demand in Baltimore

Lower-tier units drive vacancy increase. Renter demand somewhat rebounded from April through June of this year, marking the strongest quarterly absorption total since the final frame of 2021. More than 600 units were taken off the market on net during this span; however, that figure remained well below the second quarter average for the metric in the decade leading up to the health crisis. The more affordable, workforce housing segment of the market has been most affected in recent quarters, as the ending of the statewide eviction moratorium and inflationary pressures have significantly hindered leasing in lower-tier apartments. Other headwinds include a declining population in the 20- to 34-year-old cohort, coupled with total employment remaining 21,000 positions below the pre-pandemic peak. As of June, Class C vacancy was at 5.7 percent, the highest rate among all apartment property tiers. Meanwhile, the rates in Class A and B units registered at 5.4 and 4.9 percent, respectively.

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