A Look at Baltimore Metro's Top Performing Multifamily Counties

Baltimore's multifamily market remains on solid footing as the first half of 2022 comes to a close. While overall renter demand has slowed recently, it is partly due to the current lack of housing options available. Stabilized vacancies have decreased by nearly 200 basis points since before the pandemic, and are near all-time lows of roughly 4%, according to CoStar data. But as the for-sale housing market becomes more unaffordable due to elevated pricing and increasing mortgage rates, this could translate to increased apartment demand for years to come.

Renter demand and annual rent growth hit historical marks in the past several years, despite the loss of thousands of jobs during the pandemic. Overall rents grew by nearly 11% across the Baltimore metro last year and continue to grow well above historical averages. While the Baltimore market has performed well, renter preferences have shifted, impacting some counties more than others.

Here are the top-performing multifamily counties in terms of overall demand and rent growth during the pandemic:

Baltimore City

Despite a mass exodus of renters at the pandemic's start, Baltimore City's multifamily market saw historic absorption in 2021. More than 2,200 units were absorbed, a peak in annual demand, and vacancies are hovering near historical lows. Rents continue to post unprecedented growth, averaging more than 6% year-over-year growth during the pandemic, and have grown by nearly 20% cumulatively during that time.

Baltimore County

Baltimore County benefited from the renter migration from the city to the suburbs during the pandemic. Overall demand in Baltimore County ranked second among all counties in the Baltimore MSA, leading to immense rent growth. Rent growth was most robust in 2021, and overall rents increased by 11.6%. With less than a percent of the total inventory under construction, minimal supply-side pressure should benefit Baltimore County rent growth in the near term.

Howard County

Stabilized vacancies in Howard County have decreased by nearly 200 basis points since 2020. The county has experienced heavy development, with overall inventory expanding by 17% in the past five years. Demand has kept up with the supply increase, as many renters have sought out Howard County, driven by a well-regarded school system and proximity between Baltimore and D.C.