Baltimore’s multifamily fundamentals are showing signs of improvement in 2026. Apartment demand has moved ahead of new supply, vacancy has declined, and rents have continued to increase at a measured pace. Meanwhile, the construction pipeline remains near decade lows, limiting the number of new units expected to enter the market.
The combination of stronger demand and fewer new deliveries is helping Baltimore work through the elevated supply added in recent years.
Baltimore’s Construction Pipeline Remains Near Decade Lows
More than 2,800 multifamily units were under construction across the Baltimore metropolitan area as of August. That represents a decline of approximately 20% from the second quarter and more than 50% from the recent peak of 6,000 units in early 2023.
Elevated construction costs, higher interest rates, and selective lending conditions continue to make new projects difficult to finance. With fewer developments beginning construction, the number of apartments delivered in the coming years is likely to remain below the elevated levels recorded in 2023 and 2024. That reduction should give existing properties more time to absorb available units and reduce competitive pressure from newly delivered communities.
Apartment Demand Outpaces Supply as Vacancy Declines
Apartment demand has accelerated in 2026. Through the third quarter to date, annual absorption has outpaced deliveries for the first time since 2021. The slowdown in supply, alongside stronger demand, has translated into meaningful vacancy compression. Overall vacancy declined by nearly 40 basis points year to date.
Homeownership affordability is also supporting apartment demand. The median price of a single-family home in Baltimore increased by 8.6% from the prior year, according to Homes.com’s Baltimore Housing Market Report. Higher purchase prices and borrowing costs are likely keeping some prospective buyers in the rental market longer, contributing to stronger apartment absorption.
The decline in stabilized vacancy indicates that established communities are capturing demand even as recently delivered properties continue moving through lease-up. With absorption exceeding deliveries and fewer units under construction, market vacancy is beginning to improve following several years of elevated supply additions.
Rent Growth Remains Positive
Baltimore apartment rents increased during each of the first eight months of 2026. Monthly increases peaked in May before moderating into the summer months. Rent increases generally trailed the market’s 2016-2025 seasonal averages through July, indicating that operators remain measured in their pricing strategies.
Concessions also remain prevalent across recently delivered properties. Approximately half of the communities delivered since 2024 are offering some form of incentive, ranging from $500 discounts to as much as two months of free rent. These concessions continue to limit effective rent growth as newer properties compete to build occupancy.
Improving absorption and declining vacancy are supporting rents, while concessions and competition among recently delivered properties continue to limit effective rent increases.
*Multifamily data is sourced by CoStar and Harbor Stone Advisors research through the third quarter of 2026 to date.