Southern Suburban Maryland: Multifamily 2023 Review

Key Takeaways:

- Multifamily deal velocity dropped by roughly 70% year-over-year in Southern Suburban Maryland due to a volatile economic environment with several rate increases by the Federal Reserve.

- The 10-year treasury rate has remained at 4.3% or below since the start of the year, following its decline from around 5% in October 2023. The Fed has indicated several rate cuts are on the docket thanks to easing inflation, which could help drive transaction volume in 2024.

- Multifamily development is at an all-time high in Southern Suburban Maryland, with nearly 8,000 units under construction. Transit-oriented development continues to drive multifamily construction, with 85% of the units underway within 1-mile of a transit stop. Over 60% of the units under construction are within Montgomery County, and 35% are within Prince George’s.

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