Booming nightlife and culture abound, Federal Hill is an attractive place to live for young renters looking to move to Baltimore, Maryland!
Located on the south side of Baltimore’s Inner Harbor, Federal Hill encompasses approximately 24 city blocks with Federal Hill Park rising above at the northeast corner, offering the best view in the city. The neighborhood is rich in history dating back to before the Wars of Independence, where the hill played a vital part in both military and maritime use. Today, the neighborhood is part of the National Register of Historic Places and the Baltimore City Historic District Ordinance.
In addition to the neighborhood’s rich history, Federal Hill in Baltimore offers its residents a neighborhood saturated in culture and art to include the Baltimore Museum of History and the American Visionary Art Museum as well a locally owned boutiques and galleries. A foodie’s dream, the neighborhood offers a variety of shops and restaurants and at the heart of historic Federal Hill is the Cross Street Market. Originally opening in 1846, Cross Street Market began a $7.3 million renovation in early 2018. In the spring of 2019, 6 vendors re-opened in the revitalized structure with an additional 10 vendors expected to open by Labor Day.
The amenities offered in this neighborhood rich in history and culture are a huge draw to young professionals, with more than 85% of Federal Hill residents having a college or advanced degree. In early 2013, developers took notice of the demand for rental properties and new construction took off. With the new market, rental property rates rose steadily through 2017 before the supply of luxury rentals far outweighed the demand. The resulting oversupply had a huge effect on the vacancy rate which currently sits near 10% in Federal Hill as opposed to Baltimore city which is less than 4%. This increased vacancy rate throughout Federal Hill caused fierce competition among developers as they dropped their expected rental rates and offered huge incentives to bring in tenants.
In spite of the oversupply and drop in rental rates over the past year, Federal Hill in Baltimore has remained one of the most sought after and pricey neighborhoods in the city. It is currently ranked as the the 4th most expensive neighborhood in Baltimore city, falling just behind Canton and Fells Point. There are certainly plenty of options available to renters ranging from luxury highrise apartments to refurbished historic townhomes. However, renters can expect to pay anywhere from $1600 to $2400 for a 2 bedroom unit.
Throughout the rise and fall of rental property rates, and the increased vacancy rate, Bay Management Group has maintained a steady supply of available rental units in the Federal Hill and South Baltimore area. We have been able to guide our owners in pricing effectively to avoid losses due to extended vacancy and make upgrades to keep their properties fresh and attractive for prospective renters. If you are a property owner, you can turn to Bay Management Group to assist with pricing, marketing and leasing your Federal Hill home.