Like most big cities, real estate in Philadelphia is competitive. This has yet to deter both residential and commercial buyers from entering the market. Both types of buyers enjoy the rich character of Philadelphia neighborhoods. They love the camaraderie of the people they or their tenants call neighbors.
The city particularly attracts people with active work lives who look forward to building equally active social lives around eateries, hip shops and friendly faces. So, if you’re also planning to move to or invest in Philadelphia, it comes as no surprise. Here’s what you need to know before preparing that down payment.
The State of the Market in 2019
Homes across the nation sit on the market for a median time of only three weeks. This has been the case since the real estate market entered recovery at full speed in 2017. While interest rates remain relatively low, the median home price is high at $257,000. This is more than many first-time homebuyers can afford.
Without investors buying and renting homes to future first-time homebuyers, many would have a difficult time finding an affordable home in Philly. Even so, 33% of homebuyers last year were purchasing their first homes. Roughly 59% of these buyers were 18 to 34 years old, showing that millennials and Gen Z are getting a strong footing in the market.
Predictions for the Market in 2020
The Philadelphia Magazine recently made some feasible predictions for the 2020 real estate market. It starts off by declaring what most residents already know: Philly has transformed into one of the world’s biggest powerhouse cities. What does this mean for the market?
- Many millennials are still battling with student loan debt and will continue to rent.
- Millennials are moving out of the city, while more Gen Zs are moving in.
- Landlords are getting creative with rental arrangements allowing flexible stays and co-living spaces.
- Renting is less expensive and requires less maintenance than buying a home, so homeownership rates are in decline.
- The limited supply of homes will continue to drive prices upward.
- Multifamily rental units continue to show promise for renters and investors alike.
Wise investors will invest now before the cost of homeownership rises even further. As more people transition into rentals instead of homeownership, there has probably never been a better time to be a landlord in Philly.Use Ian PerlerTeam’s personalized home search tool to find your next home — whether you plan to live in it or rent it out. Got questions? Get in touch at Ian@StarRealEstateGroup.net