Philadelphia Investment Property for Sale - 2023 Rental Home Appreciation
The Philadelphia real estate market has everything real estate investors are looking for when it comes to investment opportunities. Why? Demand is up, inventory is down, and home values are increasing. What's more, Philly is an affordable city for homebuyers, renters, and real estate investors.
Philadelphia is the 8th largest metropolitan area in the U.S., growing. Known to its population as "Philly," the city has experienced a 5% population growth in the last decade. This growth is driving demand for rental properties.
A recent MLS report for Philadelphia, Pennsylvania, shows the number of listings is down 12.9% while home sale prices have risen 9%.
According to Realtor.com, the median listing price in Philadelphia is $211 per square foot, and the median sales price is $279,900. The median rent is $1,830 per month.
Combine these great numbers with Philadelphia's strong economy, and Philadelphia homes become a great potential investment opportunity for real estate investors to earn rental income.
Philadelphia's Attractive Housing Market
Philadelphia is one of the nation's oldest cities. It has history, charm, and almost every property type for real estate investors. Whether you're looking to invest in a historic single-family home, turnkey townhouse, multifamily housing, or new construction, you can find it in Philadelphia's property listings.
Philly's best neighborhoods and suburbs include Camden, Center City, Fishtown, Northern Liberties, and Reading.
- Camden: Camden, New Jersey, is just east of Philadelphia across the Delaware River. Camden makes a list because of its proximity to Philadelphia and affordability. The median listing price for a home in Camden is just $87/sqft, and the median sales price is only $100,000.
- Center City: Center City is located at the heart of Philadelphia, northwest of Graduate Hospital. It's home to skyscrapers and historic sites like Independence Hall. Real estate investors can find renovated apartments, condos, and townhouses in Center City. The median listing price in Center City is $384/sqft, and the median sales price is $525,000. Median rent is $2,200/month.
- Fishtown: Fishtown is located northeast of Northern Liberties along the Delaware River. Historically, it was a working-class neighborhood. Today, it's known as an artsy, eclectic neighborhood. Real estate investors can find historic and new construction townhouses in Fishtown. The median listing price in Fishtown is $281/sqft, and the median sales price is $449,950. Median rent is $2,100/month.
- Northern Liberties: Northern Liberties is located northeast of Center City along the Delaware River. It's a former industrial area transformed into a trendy neighborhood known for its bars and restaurants. Real estate investors can find renovated and new construction apartments, condos, and townhouses for sale. The median listing price in Northern Liberties is $355/sqft, and the median sales price is $472,500. Median rent is $2,100/month.
- Reading: Reading, Pennsylvania, is located 60 miles northwest of Philadelphia along major interstates, and it's been growing. Homes for sale in Reading are more affordable than in Philly. Real estate investors can find everything from historic townhouses to new homes. The median listing price in Reading is $120/sqft, and the median sales price is $195,000. The median rent is just $950.
Rental Home Appreciation in Philadelphia
Philadelphia has a robust real estate market and a solid rental market.
The most recent Freddie Mac House Price Index (FMHPI) for the Philadelphia MSA shows a 5-year change in home prices of +42.3%.
According to a recent report from the Philadelphia City Planning Commission, renters account for nearly half of all households in the city. The report shows a steadily increasing trend towards renting over homeownership.
As Philly grows, the demand for rental properties will only increase, which will help drive home values.
Philadelphia offers many investment opportunities for homeowners and real estate investors.
Economic Growth in Philadelphia
Philadelphia's economy has been growing steadily over the past twenty years. Philly's prime location between New York and Washington, DC, combined with affordability and job opportunities, sustains its growth.
The cost of living in Philadelphia is 57% less than in New York and 33% lower than in D.C. This attracts many people who enjoy city life but want to escape the higher taxes and higher rents of New York and D.C.
Philly has the 7th largest labor force in the country, with an annual job growth rate of 1.2%.
Philadelphia's primary industries include higher education, manufacturing, healthcare, and financial services. Philadelphia is home to nearly 100 colleges and universities that employ many residents. Day & Zimmerman, the University of Pennsylvania Health System, and GlaxoSmithKline are some of the city's largest employers.
Philly's solid economy, rental market, affordability, and home value appreciation make it a great city to invest in.
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