Philadelphia Housing Market: Trends & Prices
Philadelphia Real Estate Market Overview
(Last Updated – 4/2025)
There’s a lot to love about the City of Brotherly Love. For starters, U.S. News & World Report ranks Philadelphia as the 135th best place to live in America and the 85th best place in America to retire.
When it comes to actually living in Philadelphia, the cost of living is 3.3% higher than the national average, according to the Council for Community and Economic Research’s 2024 Cost of Living Index, but is far less than nearby metro areas like Washington, D.C., and New York City. The median Philadelphia home sale price is also significantly lower, at $250,000, as of February 2025. (Prices rise significantly when you include the city’s suburbs, however.) The national median sale price for the same month was significantly higher, at $424,810, according to Redfin.
Recommended: Cost of Living in Pennsylvania
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. If this sounds appealing, 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; homes sell in an average of 67 days.
Some homes receive multiple offers. On average, homes sell for 3% below list price. One way to gain an advantage in the market is to seek mortgage preapproval so you’re prepared with mortgage financing when you see a property you love.
$250,000
Median Sale Price
$191
Median Price Per Sq. Foot
67 days
Median Time on Market
Philadelphia Housing Market Forecast
Philadelphia’s housing market is one to follow, with strong signs of buyer competition in its future.
According to Zillow, Philadelphia median home prices rose by 3.9% over the past year. Zillow has also predicted that Philly will be the fifth most competitive metro area for homebuyers in 2025. 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 years, and Gen Z home seekers are expected to continue to play a strong role in Philadelphia’s housing market. Bars and sports venues, commute options, and access to parks all play a role in Philly’s appeal.
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 the 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: $60,302
Median Age: 35.6
College Educated: 35.7%
Homeowners: 52.2%
Married: 40%
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.
Homebuyers 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:
53,679
Median Age:
22.9
Housing Units:
22,822
Bike Score:
92/100
Walk Score:
90/100
Transit Score:
95/100
Median Household Income:
$33,766
University City Housing Market
Home values in University City rose significantly over the past year, according to Redfin.
Median Sale Price
$537,000
Median Price Per Sq. Foot
$180
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:
13,646
Median Age:
33.3
Housing Units:
9,693
Bike Score:
91/100
Walk Score:
99/100
Transit Score:
100/100
Average Household Income:
$140,822
Rittenhouse Square Housing Market
Buyers will find that the market here is not especially competitive, although the median sale price is high.
It’s rare for a home to receive multiple offers. Homes typically sell for about 3% below list price and go pending in around 91 days.
Median Sale Price
$795,000
Median Price Per Sq. Foot
$391
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:
39,100
Median Age:
35.9
Housing Units:
20,846
Bike Score:
83/100
Walk Score:
97/100
Transit Score:
78/100
Median Household Income:
$105,233
Bella Vista Housing Market
In this somewhat competitive market, some homes receive multiple offers. Homes can sell for about 2% below list price.
Buyers will find prices here down slightly over the past year. The average home stays on the market for 53 days, less time than in Philadelphia as a whole.
Median Sale Price
$540,000
Median Price Per Sq. Foot
$492
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 for its reputation as the nation’s most “historic square mile,” modern nightlife and hip restaurants are also plentiful.
Quick Facts
Population:
6,994
Median Age:
36
Housing Units:
4,541
Bike Score:
83/100
Walk Score:
98/100
Transit Score:
98/100
Median Household Income:
$109,632
Old City Housing Market
The real estate market in the Old City neighborhood is not very competitive; it takes around 166 days for homes to sell in this area.
Homes do not typically receive multiple offers and sell for around 4% under list price.
Median Sale Price
$398,000
Median Price Per Square Ft.
$387
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:
7,303
Median Age:
34
Housing Units:
4,517
Bike Score:
89/100
Walk Score:
99/100
Transit Score:
100/100
Median Household Income:
$86,462
Washington Square West Housing Market
The more popular homes in Washington Square West go to pending in 71 days, but on average homes in this neighborhood go to pending after 83 days on the market.
Multiple offers are unusual, and the average home sells for around 4% below list price.
Median Sale Price
$517,500
Median Price Per Sq. Foot
$415
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.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
Is it a good idea to buy real estate in Philadelphia?
In recent years, Philadelphia has been one of those rare big cities where it is less expensive to buy than it is to rent. This has made buying in Philly, where home prices are relatively affordable and well below the national average, a smart move for those who can afford a down payment and know they plan to stay in the city long-term.
What is the Philadelphia home price trend?
Over the last five years, home prices in Philadelphia — including single-family homes — have moved pretty steadily upward, aside from a drop in the second half of 2022. Condo and coop prices, however, have flattened out in recent years. Prices may be affected by supply, and Philadelphia has added a significant number of new housing units in the last year, with most of the growth happening in the Center City area.
Why is Philadelphia so cheap?
Housing prices that are lower than in many large cities and health care costs that sit 4% below the national average have contributed to Philadelphia’s relatively low overall cost of living, which is just 3% above the U.S. average. Utilities and groceries are above the national average in Philly, but still low when compared to other large cities such as New York or Washington, DC.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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