Baltimore Multifamily Market Report Q1 2025
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Baltimore Q1 Multifamily Market | Report 2025
The average sale price per unit has also increased, reaching $187,000—up from $184,089 a year ago. It’s important to note that these figures can be skewed by Class A properties, which often sell at a premium. As a result, the average price per unit may not accurately reflect what Class B and C properties are trading for.
There has been a noticeable increase in the number of multifamily properties on the market. At this time last year, an estimated 49 properties were listed in the Baltimore area; that number has now risen to an estimated 62 listings .
Sale Prices Currently, the average time on market for multifamily assets in Baltimore is 165 days—significantly above the typical 60-day benchmark. This points to softer buyer demand, likely due to an oversupply of inventory.
With more choices available, buyers are taking longer to make decisions, which is extending listing times and delaying closings.
Some multifamily property owners in Baltimore have expressed concern about how the new federal administration may affect the housing market. One local owner—who preferred to remain anonymous—shared that the housing program he participates in is currently pausing the issuance of new vouchers until federal funding is confirmed.
This could have a meaningful impact, particularly given that approximately 10.3% of Baltimore’s population depends on some form of government housing assistance.
Rents in Baltimore have increased by 2.4%, one of the highest growth rates in the nation. This appears to be driven by the ongoing shortage of housing supply in the local market. Maryland, as a whole, is currently facing a deficit of roughly 96,000 housing units, putting further pressure on pricing.
Asking Rents The average effective rent per unit has risen to $1,709, up from $1,670 over the past 12 months. At the same time, concession rates have declined by 1%, suggesting that demand for rental units is generally healthy. However, market performance varies by submarket. In several interviews conducted with leasing agents and landlords, it was reported that properties in West Baltimore—particularly those in the Class B- and C categories—are struggling to lease units as efficiently as they did 12 to 24 months ago.
One of the core challenges in evaluating Class C properties is that local data sources often do not accurately reflect on-the-ground conditions. This is why we place a strong emphasis on combining both data and firsthand insights gathered directly from property owners and managers we actively work with.
Vacancy rates among four-star properties in Baltimore have improved , decreasing from 10.1% to 8.9%. This suggests that tenants may be migrating from five- and three-star buildings in search of more affordable yet still high- quality housing options. The overall vacancy rate in the city currently stands at 7.1%, a slight improvement from 7.2% a year ago. However, this citywide average is heavily influenced by the performance of the four-star segment, while vacancy has slightly increased across other property classes.
A significant challenge in interpreting market data lies in the accuracy of reported statistics. In some cases, our team has observed major discrepancies between reported and actual figures— for instance, one property listed as 0.2% vacant was in reality 39.9% vacant. This highlights the importance of validating data with on-the-ground insights and Vacancy not relying solely on aggregated market reports.
Statewide, Maryland’s housing market is showing signs of stress. The vacancy rate rose slightly from 0.5% in 2023 to 0.6% in 2024. This shift comes amid broader economic pressures, including the loss of over 3,000 public sector jobs in March 2025, primarily due to federal cutbacks.
Roughly 5% of Maryland’s population is undocumented, and many of these individuals play a critical role in the state’s labor force. Unfortunately, recent policy shifts and uncertainty around housing subsidies may jeopardize their housing stability.
Additionally, we’ve seen instances where tenants, particularly immigrant families, have opted to return to their home countries in response to the evolving federal landscape and perceived lack of long-term support.
KEYINDIC ATO RS Current Quarter Units Vacancy Rate Asking Rent Effective Rent Absorption Units Delivered Units Under Constr Units 4 & 5 Star 50,861 9.3% $2,251 $2,224 172 0 1,573 3 Star 95,453 6.1% $1,692 $1,677 3 0 825 1 & 2 Star 68,533 6.8% $1,357 $1,347 (10) 0 0 Market 214,847 7.1% $1,729 $1,713 165 0 2,398 Annual Trends 12 Months Historical Average Forecast Average Peak When Trough When Vacancy -0.2% (YOY) 6.1% 6.7% 7.5% 2018 Q1 3.6% 2021 Q3 Absorption Units 3,556 1,889 2,223 7,073 2021 Q2 (3,592) 2023 Q1 Delivered Units 3,405 2,281 1,989 5,419 2018 Q2 482 2004 Q2 Demolished Units 0 68 74 313 2022 Q4 0 2025 Q1
Asking Rent Growth 2.6% 2.4% 3.0% 10.2% 2021 Q3 -1.1% 2009 Q3 Effective Rent Growth 2.8% 2.4% 3.0% 11.1% 2021 Q3 -1.1% 2009 Q3 Sales Volume $1.1B $1B N/A $4.2B 2021 Q4 $120.7M 2009 Q4
Maryland is currently experiencing a housing shortage, and developers are working to close that gap. This is evident in the 3,134 new units opened this year, with local absorption rising to 3,135 units. This reflects strong renter demand in certain segments, particularly among stabilized and newer assets. However, this dynamic contrasts with weaker buyer demand in the sales market, where listings are sitting longer and some owners face pressure.
Construction of New CRE Inventory Notably, approximately 60% of Maryland’s multifamily housing stock was built between 1940 and 1980, highlighting the aging nature of much of the existing inventory.
In Baltimore, the number of units currently under construction is 2,998—down from 4,571 the year before. This drop is expected to impact inventory levels in 2026 and 2027, as fewer units will be delivered to the market. With supply tightening, this could result in upward pressure on rents.
Under Construction Properties
Baltimore City has shown greater momentum in multifamily development compared to Baltimore County. In 2022, the city completed 1,540 new multifamily units, while the county delivered fewer than 240. Developers often favor the city due to its streamlined permitting process and fewer infrastructure-related obstacles. In contrast, Baltimore County faces stronger community resistance, particularly over traffic and neighborhood concerns, as well as limitations from an overburdened sewer system.
These challenges continue to steer more development activity into the city.
Multifamily loan delinquency rates are rising nationwide, with Commercial Mortgage-Backed Securities (CMBS) experiencing the steepest increase—reaching 5.44% as of March 2025.
National Delinquency Rates 02 Baltimore has seen several high-profile multifamily defaults, including assets held by Chesapeake and Chasen Cos. These defaults are largely the result of elevated interest rates, rising operating costs, and sustained vacancies—especially in older properties. As a result, local delinquency rates have begun to climb, with many property owners finding it difficult to meet debt service obligations.
Baltimore-Specific Defaults Multifamily Delinquency Trends & Defaults in Baltimore
Several core Downtown assets highlight the strain some owners are facing: • Vivo Living’s towers are set for foreclosure auction.
• PMC Property Group defaulted on a $16.4 million loan at 301 N. Charles Street.
• Chasen Cos. filed for bankruptcy after a failed redevelopment at The Anne on Aliceanna.
Distressed Properties
Investor Sentiment & Policy Risks Market Activity Despite these challenges, Baltimore recorded $1.14 billion in multifamily sales over the past 12 months, an 86% increase from $614.8 million the previous year.
Both local and out-of-state investors are closely watching Baltimore due to a number of policy and economic headwinds: • Rent stabilization laws in Montgomery County and proposed caps in Prince George’s County.
• Statewide debate over the Good Cause Eviction Act.
• Rising compliance costs tied to the Maryland BEPS law (Building Energy Performance Standards).
• Concerns about federal job cuts and their potential ripple effects on housing demand.
Market Position & Outlook Baltimore’s multifamily market is currently straddling soft sales conditions and steady operational performance.
Properties are taking longer to sell, and some owners are under pressure, but rent growth and absorption are holding firm.
This climate favors strategic, well-capitalized investors—particularly those positioned to stabilize distressed or underperforming assets.
While uncertainty remains, the fundamentals suggest we are in the early stages of a downturn, with strong potential for those employing a disciplined, value-driven approach.
Our Recent Achievements 244 Units | Multifamily Hillside Manor & Forest Glen Apartments Under Contract 1810 McCulloh St Sale Price Properties $8,000,000 + 100 Baltimore SFR Portfolio Sale Price Price Per Unit Units $3,000,000 $83,333 3602 Monterey Rd Sale Price Price Per Unit Units $2,597,000 $129,850 E Madison St
12 Units | Multifamily 201 E North Ave Sold 1810 McCulloh St Sale Price Price Per Unit Units $3,250,000 $180,555 Near Charles Village 15 Units | Multifamily 2620-2630 E Northern Pkwy Sold 15 Units | Multifamily 746 Edmondson Ave Sold
YAAKOV KANEVSKY Managing Director 410-498-5408 yaakov@midfieldre.com 3635 Old Court Rd Suite 403 Pikesville, MD 21208 www.midfieldre.com | info@midfieldre.com | (410)-324-6939 MENDEL DALFIN Director 410-916-9256 mendel@midfieldre.com