This Maryland County Leads Population and Job Growth, Fuels Apartment Development
Frederick County's population is growing quickly, faster than any other county in Maryland, according to new Census Bureau estimates. Frederick’s population has grown by roughly 2% annually since 2010, outpacing all counties in Maryland. In 2023, Frederick added nearly 6,000 residents on a net basis, more than 2% year-over-year growth.
Companies choose Frederick because of its skilled workforce, education, and proximity to D.C. and Baltimore. The county is also more affordable than its surrounding communities, such as Montgomery and Howard County.
Residents have moved to Frederick because of its prime location, attracting many life science and government agencies. Recently, many companies like Ballenger Bio, Kite, Precision for Medicine, Medigen, and Thermo Fisher have expanded operations.
Recently, Leonardo DRS, a national defense company, moved 160 workers to Frederick. The firm specializes in developing radio systems for electronic warfare and intelligence. In July 2023, Leonardo DRS moved into an 85,000-square-foot office space.
Apartment development is reaching historic highs thanks to steady population and job growth. Over 800 units are currently under construction, constituting 8% of the county’s existing inventory. Developers constructed almost half of the apartments in Frederick in the last ten years. However, there is an expected slowdown in construction activity in the subsequent years because of high construction costs.
Last year, two sales of apartment buildings with more than five units occured in Frederick, as investors are being cautious. In 2023, the Western Maryland area saw a sizable decrease in apartment investment, with sales totaling around $35 million. Between 2014 and 2022, these regions consistently contributed over $200 million annually in transactions.
Asking rents increased by over 3% this past year, above the state average. Vacancy rates remain below metro area averages, but as more developments complete, rents could flatten out because of increased competition among landlords.
