Baltimore County Multifamily Investment Update: September 2023

KEY TAKEAWAYS:

  • Investors are still adjusting to the higher cost of capital, nearly a year and a half into the Federal Reserve’s monetary expansion. The 10-year treasury has increased throughout the summer and is almost the highest level in over a decade.

  • Cap rates increased in the first half of 2023 due to these elevated interest rates, and overall sales volume has remained tepid at $148.6 million year to date. However, investor interest remains strong for well-positioned assets with value-add opportunities. Also, loan assumptions continue to be an attractive alternative to obtaining new financing.

  • Multifamily fundamentals remain healthy in Baltimore County despite a slight vacancy expansion, and current rates are only 100 basis points higher than the long-term average of 5.5%. Construction is expected to remain limited over the next several years, with only a few projects underway.

 
 
Harbor Stone Advisors