Here's How Baltimore Stacks Up Against Other Apartment Markets

 
Family walking in Baltimore's Hampden neighborhood

Multifamily operators across the country have enjoyed a long stretch of heightened rent growth for the better part of the pandemic, influenced by renters' difficulty in finding apartments with vacancies near historic lows. However, some parts of the country have fared better than others, similarly to the performance of different counties within the Baltimore Metro.

Since the pandemic's start, southern markets like Atlanta, Nashville, and Austin, as well as many secondary markets like Baltimore and Richmond, have seen the highest rent increases. On the other hand, gateway cities like Boston, New York, and D.C. have struggled due to the impact of remote work and its negative effect on demand in many downtown areas.

Asking rents in Baltimore have increased by more than 19% since the first quarter of 2020, just above the national average of 17.3%. This exceeds many major markets like Philadelphia, Boston, Pittsburgh, D.C., and New York.

Average Asking Rents by Market and Cumulative Rent Growth During the Pandemic

Source: CoStar

Helping Baltimore’s rental rate growth is the slowdown of delivered units over the past couple of years. Just more than 6,000 units, or 2.3% of the total inventory, have opened their doors since the pandemics’ start.

This is far less growth than most markets around the country like Nashville (16% inventory growth), D.C (6.8%), and the national average (6%). This has helped keep occupancy levels stable, even as renter demand shifts and preferences change.

Percentage Inventory Growth During Pandemic, Changes in Occupancy During the Pandemic

Source: CoStar

Several key factors, like rising inflation and interest rates, will likely continue to influence the multifamily market. These dynamic elements have created uncertainty within Baltimore's apartment market and in cities across the country. While this could impact investment activity, buyers may need to get creative in this changing environment.

Baltimore is well-positioned to face these hurdles, with vacancies near all-time lows. And with minimal supply-side pressure expected, rents should continue to grow above the metro’s long-term averages.

To discuss any of our current investment opportunities or for a complimentary opinion of value on your apartment property, call or email Justin Verner: (410)-960-3962 | jverner@harborstoneadvisors.com

 
Harbor Stone Advisors