The real estate market can be difficult to navigate no matter where you are. Of course, the Philadelphia area is no different. In a state as large as Pennsylvania, it can sometimes be hard to get a gauge on the market.
That’s why we’re here today—to explore the state of the market in Philadelphia. There are a lot of things to keep in mind when it comes to real estate here, after all. If you want to learn more, make sure to stick around.
Understanding the Market
There are a lot of moving parts in the real estate world. Trends can be difficult to follow sometimes, though. Let’s take a look at some of the specifics in the Philadelphia area—just keep in mind that they are always subject to change.
Market Conditions
One of the main things you’ll want to keep in mind is that the conditions change frequently. Right now, though, buyer demand is quite high. It’s been increasing steadily over the past few years.
Why is that? Well, it’s largely due to the diverse economy, cultural institutions, and educational opportunities that are present in the city. That has brought about a lot of growth.
It also means that the city attracts a mix of young professionals, families, and students. Together, this means that there is a rather competitive market.
What about home prices? Well, naturally, those will vary. While overall there’s been an increase in price, it will really depend on the neighborhood that you’re looking at. You can find examples here: https://maxwellrealty.com/ no matter the neighborhood you’re looking in.
As you can imagine, the more “desirable” locations such as Center City, Rittenhouse Square, and areas near universities tend to have higher price tags on properties. Still, you can find hidden gems pretty much anywhere if you know where to look.
Neighborhood Dynamics
Philadelphia’s neighborhoods have distinct characteristics that influence the real estate market. It’s pretty much true no matter where you go, of course. What are the specifics here in the city?
Some neighborhoods have undergone gentrification and revitalization in the past decades. A few examples include the Northern Liberties, Fishtown, and South Philadelphia. As a result, the properties in these neighborhoods tend to be of higher value (and higher cost).
In contrast, other neighborhoods will be more affordable. This makes them appealing to first-time homeowners and investors. It’s up to us to determine what our needs are, and what will suit our family best.
The Rental Market
This isn’t our primary focus today, but it’s worth touching upon at least. It’s hard to get a proper gauge on a market without considering the rental aspect, after all. You can probably guess, but the rental market in Philadelphia remains competitive.
Many young professionals and students prefer renting due to the city’s vibrant urban lifestyle. This is especially true the closer you get to universities. Of course, if you’re seeking to avoid the hustle and bustle of the main city, this is probably the opposite of what you’re looking for.
Similarly to most cities, there has been a rise in luxury apartment development. However, there are still affordable options for anyone interested.
Investments and Development
As you can read about in this article, there have been a lot of updates in terms of developments and investment opportunities here in Philadelphia. The city has seen significant investment in infrastructure, new commercial developments, and housing projects. All of this contributes to the revitalization that we mentioned earlier.
What does this mean for most of us? It’s created an excellent environment for investing in properties as well as purchasing them for personal use. In fact, it’s hard to deny Philadelphia’s place as a big-time American city. These latest projects further cement that.
There is ongoing development of mixed-use properties and transit-oriented projects. This has drawn interest from both buyers and investors. Overall, opportunities for real estate investment remain diverse. Whether you’re looking for single-family homes, multi-family units, or even commercial properties, you’re likely to find it.
Final Thoughts?
Clearly, there’s a lot to cover as far as the Philadelphia real estate market. In the wake of the Covid-19 pandemic, a lot of people became a bit nervous about buying properties. Is it really worth it right now? Thankfully, we finally seem to be on the road to recovery from that tragedy.
Overall, Philadelphia’s real estate market is dynamic. It’s influenced by a mixture of local economic conditions and demographic trends. That’s not to mention individual neighborhood characteristics.
Of course, buyers, sellers, and investors should stay informed about market changes. That’s the only real way to make informed decisions. Thankfully, there are plenty of real estate agents and professionals in the city that can help with that endeavor. When in doubt, it never hurts to ask an expert!