Philadelphia Housing Market: Trends & Prices

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    Philadelphia Real Estate Market Overview

    (Last Updated – 10/2020)

    There’s a lot to love about the City of Brotherly Love. For starters, U.S. News and World Report ranks Philadelphia as the 102nd best place to live in America, the 27th best place in America to retire, and the 8th best place to live in all of Pennsylvania.

    When it comes to actually living in Philadelphia, the cost of living is slightly higher than the national average, but is less than nearby metro areas like Washington D.C. and New York City. On the flip side, housing costs are lower than the national average in Philadelphia at $200,142, compared to a national average of $227,025.

    Residents need to bundle up during the chilly winters, but residents love taking advantage of all of Philadelphia’s gorgeous outdoor spaces in the other seasons. Of course, this city is best known for inventing the Philly cheesesteak, but there is also a seemingly endless option of food trucks, restaurants, and beer gardens for locals to satisfy their cravings.

    Keep reading to learn more about the Philadelphia real estate market, popular neighborhoods, and housing prices.

    $247,000

    Avg. Home Price

    $177

    Avg. Price Per Sq. Ft

    40 days

    Avg. Time on Market

    Philadelphia Housing Market Forecast

    While there is no such thing as a crystal ball, those who are interested in the Philadelphia housing market can take a look at this handy market forecast.

    Philadelphia median home prices rose by 5.4% over the past year, but Zillow is predicting they could fall 1.1% in the next year.

    Housing market forecast chart

    *Graph taken from Zillow as of 09/2020

    Demographics of the Philadelphia Market

    What’s not to love about Philadelphia? This vibrant city is packed full of 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 unique demographics, it can be helpful to look at Philadelphia as a whole.

    Median Income: $46,116

    Median Age: 34.5

    College Educated: 29%

    Homeowners: 52.7%

    Married: 34%

    University City

    University City lies in the heart of West Philadelphia and is named as such for being an academic epicenter of the region. Two major universities, University of Pennsylvania and Drexel University, reside in this area.

    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:

    54,311

    Median Age:

    22.8

    Housing Units:

    19,895

    Bike Score:

    92

    Walk Score:

    90

    Transit Score:

    96

    Average Household Income:

    $43,842

    University City Housing Market

    The University City housing market is rather unique in the sense that on average, houses stay on the market for just one day (aka they sell exceptionally quickly) yet they sell for 6.7% under their list price.


    Average Home Price

    $350,000

    Average Price Per Sqare Ft.

    $256


    Rittenhouse Square

    The Rittenhouse Square neighborhood is considered by some 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:

    12,821

    Median Age:

    33.9

    Housing Units:

    8,570

    Bike Score:

    89

    Walk Score:

    99

    Transit Score:

    100

    Average Household Income:

    $117,122

    Rittenhouse Square Housing Market

    Buyers can have a little wiggle room when home shopping in the Rittenhouse neighborhood.

    It’s rare for a home to receive multiple offers in this area, homes typically sell for about 3.3% below their list price, and they go pending in around 52 days.


    Average Home Price

    $393,000

    Average Price Per Square Ft.

    $414


    Bella Vista

    With a name that translates to “beautiful sight”, it’s no surprise that Bella Vista is such a popular Philadelphia neighborhood.

    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:

    28,328

    Median Age:

    50.8

    Housing Units:

    13,328

    Bike Score:

    83

    Walk Score:

    97

    Transit Score:

    77

    Average Household Income:

    $82,816

    Bella Vista Housing Market

    In this somewhat competitive housing market, some homes receive multiple offers and homes can sell for about 2.5% below their list price.

    Buyers should have some time to make a decision before placing an offer, as houses don’t sell too quickly in this neighborhood (61.5 days on average).


    Average Home Price

    $602,000

    Average Price Per Square Ft.

    $327


    Old City

    History buffs will love Old City, as this is the exact neighborhood 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 aplenty.

    Quick Facts

    Population:

    6,108

    Median Age:

    35

    Housing Units:

    3,573

    Bike Score:

    83

    Walk Score:

    98

    Transit Score:

    98

    Average Household Income:

    $137,812

    Old City Housing Market

    While the real estate market in the Old City neighborhood is somewhat competitive, it takes around 77 days for homes to sell in this area.

    If they do eventually sell, homes typically receive multiple offers and sell for around 2.7% less than their list price.


    Average Home Price

    $350,000

    Average Price Per Square Ft.

    $378


    Washington Square West

    For those looking for the best of both worlds, look no further than Washington Square West. Modernity meets historic charm 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. Of course, you can always spend some time enjoying nature at the beloved Washington Square Park in the northeast corner of the neighborhood.

    Quick Facts

    Population:

    6,708

    Median Age:

    33

    Housing Units:

    3,964

    Bike Score:

    88

    Walk Score:

    99

    Transit Score:

    100

    Average Household Income:

    $90,948

    Washington Square West Housing Market

    The more popular homes in Washington Square West can sell in as little as 44 days, but on average homes in this neighborhood sell after about 44 days on the market.

    Some homes in the area receive multiple offers and they sell for around 2.5% below their list price.


    Average Home Price

    $333,000

    Average Price Per Square Ft.

    $471



    SoFi Home Loans

    It’s easy to see why Philadelphia has become such a popular market to buy a home in. There are some really amazing neighborhoods to choose from whether you’re young and single or have a family to look after.

    If you think Philadelphia could be your home sweet home, then you may need to consider your home loan 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.

    Learn more


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