It’s always sunny in Philadelphia, whether you’re in a home or an apartment.
Philadelphia’s real estate market is a dynamic landscape with various trends and factors influencing the choices of residents. From affordable neighborhoods to luxury living options, this article delves into the overall market trends, neighborhood insights, market dynamics and renting scenarios in the City of Brotherly Love.
Overall housing market trends
The Philadelphia housing market exhibits a diverse range of trends, catering to individuals with varying preferences and budget constraints. Let’s take a deeper dive into Philadelphia real estate.
Philadelphia’s real estate market is categorized as “somewhat competitive.” Certain homes attract multiple offers, while the average homes typically sell for approximately 3% below the listed price and enter pending status in approximately 47 days. On the other hand, in-demand homes may sell for close to the list price and enter pending status within about 18 days.
In December 2023, the median home price in Philadelphia experienced a 2.9% decrease from the previous year, reaching $235K. The average time homes spent on the market was 52 days, slightly less than the 54 days recorded last year. The number of homes sold in December this year increased to 1,067, compared to 1,049 in the previous year.
Neighborhood insights
Find out what Philadelphia homes are selling for in different neighborhoods, as well as how long they’re staying on the market.
- Brewerytown: This neighborhood is characterized by listings like a recent property that sold for the listing price of $450,000 after being on the market for a long stay of 103 days.
- Lower Moyamensing: A competitive market shown through listings like a three-bedroom recently sold for 4% under the list price at $239,000. This property sat on the market for 72 days.
- Northeast Philadelphia: A highly sought-after neighborhood with listings like a four-bedroom that sold for 7% over the listing price at $374,100. This listing went quickly as it only spent 38 days on the market.
- Center City: Known as the heart of Philadelphia has pricier listings like the recently sold two-bedroom that sold for $575,000 after 91 days on the market. This property sold for 9% under the list price.
- Germantown: A more affordable neighborhood characterized by listings like a three-bedroom that recently sold for its original listing price of $155,000 after spending 91 days on the market.
Market dynamics
Many factors, including economic conditions, job opportunities and urban development initiatives influence the dynamics of the Philadelphia housing market. These factors fluctuate between the varying Philadelphia neighborhoods. Home prices, buyer demand and overall Philadelphia housing market trends are dependent on the individual neighborhoods.
Renting in Philadelphia
The rental market in Philadelphia offers a diverse array of options, featuring varying prices and living experiences depending on the specific neighborhood. Let’s delve into the current status of the rental market in Philadelphia.
Rental price trends
Philadelphia has experienced fluctuating rent prices, just as other large US cities have as well. Upper North Philadelphia stands out with an average 1-bedroom apartment rent of $925 which is a 61% rise in rent YoY.
Areas like Rittenhouse Square and University City saw a small change of 8%, raising their one-bedroom options to $2,200 and $2,386, respectively. Conversely, affordable options are available in Lower North and Brewerytown, where average 1-bedroom rents are down 17% bringing rent to $1,450.
Affordable neighborhoods
Unearthing the most affordable neighborhoods is crucial for those prioritizing budget-friendly living in Philadelphia. Cedar Park, Germantown and Mantua provide affordable housing options, presenting alternatives to the city’s average 1-bedroom rent of $1,771.
Popular neighborhoods
Where are the neighborhoods that new Philadelphia residents are flocking to? We’ve identified a few of the top contenders.
Lower North: Lower North Philadelphia combines historical allure with modern urban living, creating a diverse and dynamic atmosphere for residents and visitors alike.
Brewerytown: Brewerytown, once industrial, is now a trendy residential enclave with historic charm, attracting a creative community drawn to its artistic vibrancy and proximity to Fairmount Park.
North Central: North Central, centered around Temple University, pulsates with academic energy and community engagement, making it a lively hub for both students and residents.
Avenue of the Arts North: Avenue of the Arts North, at the heart of Philadelphia, is a cultural epicenter renowned for its theaters, music venues and artistic ambiance, offering residents a vibrant and enriched urban experience.
Migration patterns
Whether individuals are arriving in search of new opportunities or departing for different horizons, tracking these migration patterns contributes to a comprehensive understanding of the Philadelphia housing dynamics. According to Redfin market data gathered Oct 2023 – Dec 2023, 22% of Philadelphia homebuyers searched to move out of Philadelphia, while 78% looked to stay within the metropolitan area.
People are coming to Philadelphia from:
People are leaving Philadelphia for:
Luxury living options
For those with a penchant for luxury apartment living, Philadelphia boasts options in University City, Logan Square and Rittenhouse Square. These neighborhoods provide upscale living experiences, albeit at a higher cost compared to the city’s average 1-bedroom rent. Some luxury apartment options are found in communities like The Riverloft Apartment Homes, The Alexander and The Atlantic.
Taxes
Taxes play a significant role in the overall cost of living in any city. The minimum combined sales tax rate for Philadelphia, Pennsylvania is 8%. This is the total of state, county and city sales tax rates.
Unveiling the keys to your Philadelphia dream
Philadelphia’s housing market holds so many diverse options, catering to a wide range of preferences and budgets. Whether you’re drawn to the affordability of specific neighborhoods or the luxury living options in the city’s vibrant districts, this guide will assist you in making informed decisions in the pursuit of a home in the City of Brotherly Love.
Are you ready to make the move to Philly? Find the right Philadelphia apartments to match your needs.
