Key Takeaways:
Maryland’s multifamily vacancy declined in each of the first three quarters of 2026, falling by more than 50 basis points year to date. Renter demand continued to exceed new deliveries, helping the state absorb several years of elevated construction activity. Vacancy remains roughly 10 basis points above its long-term average, with recent trends pointing toward continued recovery.
New supply continues to slow across Maryland. Trailing-12-month deliveries reached their lowest level since 2022, while construction and permitting activity remained near their lowest levels in more than a decade. In the Baltimore area, just over 3,000 units are under construction, down from more than 6,000 at the start of 2023. The smaller pipeline points to limited supply pressure in the coming years.
Improving occupancy has supported Baltimore’s pricing power, with annual asking rent growth reaching 2.0%, matching the national average and outpacing Washington, D.C., and Philadelphia. Limited new supply and a widening gap between renting and owning could support further increases. Suburban Maryland’s occupancy recovery also continued, though rent growth remained subdued and rent stabilization continued to constrain increases at covered properties.
