Baltimore, Maryland's Multifamily is poised to continue to see vacancy drops after a strong 2025. Last year, the rate fell by over 100 basis points, with 2026 expected to see an additional 0.30 percent decline and fall to 4.1 percent, a Marcus & Millichap Baltimore Metro Area Investment Forecast report reveals.
This would mark the lowest vacancy level since 2021 and the third straight year that the category would see a drop. Plus, the 4.1 percent rate would be 90 basis points under the trailing 10-year median in the market.
"Outlying suburban communities like Columbia and Towson are also in a favorable spot, as they entered 2026 with the lowest vacancy metrics," Marcus & Millichap noted.
"In the city center, vacancy was essentially unchanged last year, even though local inventory increased roughly 4 percent Outlying suburban communities like Columbia and Towson are also in a favorable spot, as they entered 2026 with the lowest vacancy metrics. In the city center, vacancy was essentially unchanged last year, even though local inventory increased roughly 4 percent."
Pricing remains in a good position as well, with the CRE brokerage calling for 2.3 percent rent growth in 2026 to take the average to $1,813 per month.
However, the one headwind that persists is economic headwinds regarding the Federal Government's downsizing and tariffs. Both of which, Marcus & Millichap admitted, may have impacted investment sales in the Baltimore metro area last year. However, that could change in the short-term thanks to the region's resilience to the challenges and the market's exposure to European markets.
"Substantial drops to vacancy north and west of downtown may attract more sales activity in the $1 million to $10 million price tranche this year," Marcus & Millichap suggested.
"Outside the core, investors may make smaller opportunity plays in one of the metro's least vacant submarkets, Columbia-Laurel. Here, a sizable redevelopment proposal near Interstate 95 — Gateway Plaza — could aid future apartment leasing as office and retail tenants move in."
In 2026, the firm projects that employment in the market will grow by 0.2 percent.
Additionally, even though the Class C vacancy has been elevated since 2024 and the property type ended last year at nine percent, Marcus & Millichap thinks that demand for lower-cost rentals in Downtown Baltimore could increase in the short-term.
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