Economy, Pipeline Slow But Market Copes
Baltimore’s multifamily market entered the fourth quarter on a decelerating path, as the seasonal slowdown and economic hurdles left their mark, according to the latest Yardi Matrix Baltimore multifamily market report. Advertised asking rents remained flat on a trailing three-month basis through October, to $1,730, while the national figure was down 0.1%, to $1,748. The metro’s occupancy rate grew 40 basis points, to 94.9%, as of October. That was 20 basis points above the 94.7% U.S. figure, as noted in the national multifamily market report.
Baltimore unemployment reached 3.1% in October, 100 basis points below the national rate. The figure increased 30 basis points from January but remained below pre-pandemic levels. In the 12 months ending in August 2024, Baltimore gained a mere 200 net positions. Education and health services led growth (up 11,500 jobs), while trade, transportation and utilities lost 5,600 positions. This was directly influenced by the collapse of the Francis Scott Key Bridge, which led to the city’s port being shut down for 11 weeks. The Maryland Department of Transportation estimates the replacement will cost between $1.7 and $1.9 billion.
Developers completed 2,126 units in 2024 through October, the equivalent of 0.9% of existing stock. Both completions and starts slowed in 2024 across Baltimore. Still, the pipeline comprised 6,190 units under construction and an additional 40,000 in the planning and permitting stages early in the last quarter.
Read the full Yardi Matrix Baltimore Multifamily Market Report: December 2024
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