As the supply of apartments continues to increase throughout Baltimore and cities across the U.S., shifts in rent prices indicate demand may be slipping.
Rents have decreased each month since the beginning of 2018, according to data compiled by apartment listing website Abodo. In Baltimore, median one-bedroom rents are down to about $1,070 this month, a 0.2 percent drop from the previous month.
Median rent for a one-bedroom unit in Baltimore City has slid from $1,094 since the start of the year, according to Abodo. This as developers continue to erect luxury apartment buildings across the city, with the highest one-bedroom rents topping $2,500 per month.
The downward trend in prices is not exclusive to Baltimore, though. Nationwide, Abodo reported the median price of one-bedroom units has fallen 3.9 percent year-to-date, from January’s median of about $1,046 to June’s median of $1,005. It follows a year where rents nationwide jumped by about 2.4 percent overall. In Maryland, for example, average rent prices reached $1,278 in 2017.
Nationally, two-bedroom unit rents have also seen some big decreases since the start of the year. A unit that cost $1,254 per month in January now can be had rented for about $1,220.
The Abodo report points out that rises in mortgage interest rates may make renting more preferable again, and demand may begin to swing the other way. It remains to be seen how rental markets will behave throughout the second half of 2018.
"For now, however, renters are still the winners in most areas."