3 Key Insights From Pew's "State of the City"mollygavin
The latest report from The Pew Charitable Trusts’ Philadelphia research initiative provides valuable new economic and real estate data. Check out our top three real estate observations below, or download the full report here.
1. Home Prices Are Way Up.
The total number of homes sold last year was the highest it’s been since the recession and median home prices were 38% higher than in 2010. The growth was unevenly distributed though with the largest increases occurring in Center City, the River Wards, Chestnut Hill and South Philly. Prices in the Kensington zip code, 19122, are up a stunning 94%, while other zip codes remained stable or depreciated.
2. Real estate in Philly is still substantially less expensive than in other cities.
While sale prices and rents rose, homes in Philadelphia are still “substantially” cheaper than in other areas. Philadelphia remains the most affordable of the large Northeastern metros. The salary needed for purchasing a median-priced home here is $53K compared with over 80K in Boston or Washington, DC.
3. There is high demand for housing, especially affordable housing.
The number of residential building permits peaked in 2014 but has fallen since despite stubbornly low inventory. Philadelphia also lost 20% of its affordable housing stock between 2000 and 2014, and 56% of residents are paying more than a third of their income on rent. The good news is that the job market is expanding and Philadelphia out-paced the nation as a whole in both job and income growth.