Key Takeaways:
Renter demand remains strong.
In Q1 2025, Baltimore City experienced continued leasing momentum, with vacancy declining by 30 basis points. This marks the first quarterly drop in vacancy since 2021, indicating that the market is effectively absorbing the recent surge in new supply. Leasing activity has been steady across the workforce and professionally managed assets, particularly in centrally located and transit-oriented neighborhoods.
New supply is slowing.
After delivering nearly 4,000 units between 2023 and 2024, Baltimore’s development pipeline has contracted. Just over 300 units were delivered in the first quarter of 2025, and it has one of the smallest pipelines the city has seen in years. With developers pulling back due to rising costs and tighter financing conditions, supply-side pressure is expected to ease through the remainder of the year.
Rents continue to climb.
Asking rents rose to over $1,585 in Q1 2025, up 2.6% year-over-year. This steady pace of growth reflects strong fundamentals and minimal use of concessions, especially in stabilized properties. With vacancies trending downwards, if demand continues to hold and new deliveries remain muted, further rent growth is expected in the back half of 2025.
