Philadelphia Housing Market: Trends & Prices
Philadelphia Real Estate Market Overview
(Last Updated – 11/2021)
There’s a lot to love about the City of Brotherly Love. For starters, U.S. News & World Report ranks Philadelphia as the 112th best place to live in America, the 19th best place in America to retire, and the eighth best place to live in all of Pennsylvania.
When it comes to actually living in Philadelphia, the cost of living is 9% higher than the national average, according to the Council for Community and Economic Research’s 2021 Q2 Cost of Living Index, but is far less than nearby metro areas like Washington, D.C., and New York City. However, the average Philadelphia metro area house price is significantly higher, at $426,900, than the national average of $377,163, according to council data.
Recommended: Cost of Living in Pennsylvania (2022)
Residents need to bundle up during the chilly winters, but they can take advantage of all of Philadelphia’s outdoor spaces in the other seasons. Of course, this city is best known for Philly cheesesteaks, but there is also a smorgasbord of food trucks, restaurants, and beer gardens for locals to satisfy their cravings. Read more about home ownership.
Keep reading to learn more about the Philadelphia real estate market, popular neighborhoods, and housing prices.
Overall Philadelphia Market Trends
The real estate pros at Redfin find the Philadelphia housing market to be somewhat competitive, with many homes selling in around 35 days.
Some homes receive multiple offers. On average homes sell for 2% below list price.
$257,000
Median Sale Price
$187
Avg. Price Per Sq. Foot
35 days
Avg. Time on Market
Philadelphia Housing Market Forecast
Philadelphia is currently considered one of the hottest housing markets in the nation.
According to Zillow, Philadelphia median home prices rose by 11.7% over the past year. Despite a slight decrease in buyer interest during the summer, real estate experts expect home prices to continue rising over the next year thanks to low inventory, low interest rates, and steady demand.
So who’s scooping up homes in Philadelphia? Generation Z, for one, has been fueling part of the demand. Philadelphia has reportedly been among the top five cities for Gen Z homebuyers 25 and younger in recent months, and Gen Z home seekers are expected to continue to play a strong role in Philadelphia’s housing market.
Demographics of the Philadelphia Market
This vibrant city is packed with interesting neighborhoods and is bordered by charming towns.
Before exploring the most popular neighborhoods of Philadelphia, stepping back and getting a bigger picture may prove worthwhile. While each neighborhood has its own demographics, it can be helpful to look at Philadelphia as a whole.
Median Income: $45,927
Median Age: 34.4
College Educated: 29.7%
Homeowners: 53%
Married: 33.9%
Popular Philadelphia Neighborhoods
Philadelphia is known as being a “city of neighborhoods,” and there are tons of distinct areas to explore, from the bustling downtown to a veritable museum row.
Home seekers may want to check out popular neighborhoods in Philadelphia. Here are demographics, characteristics, and housing prices in five.
University City
University City lies in the heart of West Philadelphia and is named for being an academic epicenter of the region. Two distinguished campuses, the University of Pennsylvania and Drexel University, are here.
Alongside great education opportunities are nationally renowned medical hubs that serve multiple disciplines. Museums, galleries, festivals, and performance spaces can also be found in this dynamic neighborhood.
Quick Facts
Population:
53,560
Median Age:
22.9
Housing Units:
20,053
Bike Score:
92
Walk Score:
90
Transit Score:
96
Average Household Income:
$45,012
University City Housing Market
Home values in University City increased 6% over the past year, according to Zillow. The typical home stays on the market about 81 days.
Average Sale Price
$537,000
Average Price Per Sq. Foot
$287
Rittenhouse Square
Rittenhouse Square is considered to be an oasis in the midst of a bustling city. This pretty neighborhood attracts some of Philadelphia’s chicest residents, as well as students and young professionals.
From shopping to dining to quiet walks on tree-lined streets, Rittenhouse Square can give residents a taste of whatever it is they’re looking for.
Quick Facts
Population:
12,911
Median Age:
33.8
Housing Units:
8,711
Bike Score:
89
Walk Score:
99
Transit Score:
100
Average Household Income:
$123,345
Rittenhouse Square Housing Market
Buyers can have a little wiggle room when home shopping in the Rittenhouse Square neighborhood.
It’s rare for a home to receive multiple offers. Homes typically sell for about 4% below list price and go pending in around 78 days.
Median Sale Price
$554,250
Average Price Per Sq. Foot
$459
Bella Vista
Nice view indeed.
This area was settled by Italian immigrants, and today visitors and locals alike flock to the famous 9th Street Italian Market, which is the oldest operational open-air market like it in America.
Today residents come from near and far, and diversity is celebrated.
Quick Facts
Population:
38,472
Median Age:
35.2
Housing Units:
19,695
Bike Score:
83
Walk Score:
97
Transit Score:
77
Average Household Income:
$118,740
Bella Vista Housing Market
In this somewhat competitive market, some homes receive multiple offers. Homes can sell for about 2% below list price.
Buyers have discovered Bella Vista over the past year. The average home stays on the market for 30 days, compared with 79 days a year before.
Median Sale Price
$544,000
Average Price Per Sq. Foot
$336
Old City
History buffs will love Old City, as this is the place where the Declaration of Independence was signed.
This neighborhood is known for embracing its historic past and looking to the future. Lying next to the Delaware River, Old City can offer residents everything they’re seeking, from culture to art to more historic spots than they’ll know what to do with.
While many are drawn to Old City, next to the Delaware River, for its reputation as the nation’s most “historic square mile,” modern nightlife and hip restaurants are also plenty.
Quick Facts
Population:
6,368
Median Age:
36
Housing Units:
3,691
Bike Score:
83
Walk Score:
98
Transit Score:
98
Average Household Income:
$141,710
Old City Housing Market
The real estate market in the Old City neighborhood is not very competitive; it takes around 62 days for homes to sell in this area.
Homes do not typically receive multiple offers and sell for around 3% under list price.
Median Sale Price
$425,000
Average Price Per Square Ft.
$378
Washington Square West
Modernity meets historic charm in Washington Square West, where cobblestone streets are nestled around luxe high-rise condos.
For those who like to do a little shopping on the weekends, this area specializes in jewelry, antiques, and artwork. Or you can spend time at the beloved Washington Square Park in the northeast corner of the neighborhood.
Quick Facts
Population:
7,007
Median Age:
33
Housing Units:
4,125
Bike Score:
88
Walk Score:
99
Transit Score:
100
Average Household Income:
$93,714
Washington Square West Housing Market
The more popular homes in Washington Square West can sell in as little as 35 days, but on average homes in this neighborhood sell after 71 days on the market.
Multiple offers are rare, and the average home sells for around 3% below list price.
Median Sale Price
$507,500
Average Price Per Sq. Foot
$387
SoFi Home Loans
The Philadelphia real estate market is somewhat competitive. This is a big city with charming old neighborhoods, wonderful universities, lots of culture, and a vast menu.
If you think Philadelphia could be your home sweet home, then you may need to consider your mortgage financing options.
If you’re buying a home or refinancing an existing mortgage, SoFi can help you make the process as quick and painless as possible.
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