Snapshot of Baltimore's Multifamily Construction Pipeline

 
building under construction, cranes present
 
 

Baltimore’s apartment development pipeline remains below its historical average, with only 3,500 units under construction, or 1.7% of its total inventory. This is below many of its neighboring cities like D.C., Richmond, and Norfolk and is about half of the national average in terms of percent of total inventory underway.

Multifamily development is currently the highest in many sunbelt markets like Nashville and Austin, where population and job growth is robust. Baltimore’s development pipeline is tamer, which has helped keep vacancies low and rent growth strong.

Timelines for multifamily projects are still impacted by the supply chain disruptions that have caused a shortage of materials. As a result, deliveries in Baltimore and across the country have slowed in the past few years.

 
Percent of inventory under construction by market

Source: CoStar

 

Much of the current apartment development in the Baltimore metro has and is currently still focused within the city limits. In the past five years, Harbor East, Fells Point, Federal Hill, and Canton accounted for roughly 40% of all units delivered. Today, those neighborhoods represent 45% of the current construction pipeline.

This activity within the city’s waterfront neighborhoods is driven by the vast renter base of young individuals who desire proximity to retail and nightlife and an array of amenities that many of these recently built communities offer.

Outside of Baltimore City, apartment development has steadily increased in Howard County, and total inventory here has increased by more than 16% in the past five years. Much of the focus is within Columbia and Maple Lawn, which are areas that have seen increased job creation and population.

 
Baltimore City Units Under Contruction by Neighborhood, Baltimore MSA Units Under Construction by County

Source: CoStar

 

Overall, Baltimore’s construction pipeline will likely have minimal impact on vacancies, even as demand has lessened this year. This minimal supply-side pressure should continue to benefit landlords' ability to push rents.

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