Key Takeaways:
- Baltimore Enters Period of Development Slowdown
Fewer than 800 units were delivered in the first half of the year, putting 2025 on track for the lowest annual total since 2010. The construction pipeline has also thinned, with active projects down 30 percent year-over-year and just under 2,500 units currently underway.
- Rent Growth Moderates in Q2
After nearly 8,000 units delivered over the past two years, Class A competition has intensified, with over 60% of new communities offering concessions. Even so, rents rose 1.6% annually in Q2, nearly double the national average and outpacing nearby markets.
- Investment Activity Centered on Baltimore’s Middle Market
Institutional capital remains cautious, and only three properties have sold over 100 units in the first two quarters of this year. Baltimore’s middle market, however, remains active as all-cash transactions, owner financing, and short-term loans from select regional banks have helped bridge the gap left by traditional financing.
