Philadelphia Housing Market: Trends & Prices (2026)
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 13th best place to live in Pennsylvania and the 10th best place in Pennsylvania to retire.
When it comes to actually living in Philadelphia, the cost of living is 7.2% higher than the national average, according to the Council for Community and Economic Research’s 2025 Cost of Living Index, but is far lower than nearby metro areas such as Washington, D.C., and New York City. The median Philadelphia home sale price is also significantly lower, at $294,805 as of August 2026. (Prices rise significantly when you include the city’s suburbs, however.) The national median sale price for the same month was significantly higher, at $398,596, according to Redfin.
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, you may want to learn more about home ownership.
Keep reading for information about the Philadelphia real estate market, popular neighborhoods, and housing prices.
Recommended: Cost of Living in Pennsylvania
Philadelphia Real Estate Market Trends
The real estate pros at Redfin find the Philadelphia housing market to be somewhat competitive. Homes sell in an average of 50 days.
Some homes receive multiple offers. On average, homes sell for 2% below list price. One way to gain an advantage in the market is to seek mortgage preapproval so you’re prepared with a home loan when you see a property you love.
$295,000
Median Sale Price
$210
Median Price Per Sq. Foot
50 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’s average home value rose by 0.1% over the past year. Zillow has also predicted that Philly will be the sixth most competitive metro area for homebuyers in 2026. 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 20 cities for Gen Z homebuyers 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: $60,521
Median Age: 35.7
College Educated: 36.4%
Homeowners: 51.8%
Married: 35%
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:
18,830
Median Age:
24
Housing Units:
8,507
Bike Score:
92/100
Walk Score:
90/100
Transit Score:
95/100
Median Household Income:
$38,814
University City Housing Market
Home prices in University City decreased 13.2% over the past year, according to Redfin. Homes typically sell for 4% below asking and go pending in 73 days.
Median Sale Price
$382,000
Median Price Per Sq. Foot
$254
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:
13,931
Median Age:
33
Housing Units:
10,361
Bike Score:
90/100
Walk Score:
99/100
Transit Score:
100/100
Average Household Income:
$102,093
Rittenhouse Square Housing Market
Buyers will find that the market here is only somewhat competitive. However, the median sale price is high.
Some homes receive multiple offers. Homes typically sell for about 3% below list price and go pending in around 71 days.
Median Sale Price
$630,000
Median Price Per Sq. Foot
$442
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:
4,664
Median Age:
36
Housing Units:
2,480
Bike Score:
83/100
Walk Score:
97/100
Transit Score:
78/100
Median Household Income:
$105,755
Bella Vista Housing Market
In this very competitive market, many homes receive multiple offers. Homes can sell for about 1% below list price.
Buyers will find prices here down slightly over the past year. The average home stays on the market for 37 days, less time than in Philadelphia as a whole.
Median Sale Price
$540,000
Median Price Per Sq. Foot
$415
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:
7,334
Median Age:
37
Housing Units:
4,864
Bike Score:
86/100
Walk Score:
98/100
Transit Score:
100/100
Median Household Income:
$111,576
Old City Housing Market
The real estate market in the Old City neighborhood is somewhat competitive. It takes around 52 days for homes to sell in this area.
Some homes receive multiple offers and sell for around 3% under list price.
Median Sale Price
$450,000
Median Price Per Square Ft.
$364
Bustleton
Bustleton blends a rich colonial history with a vibrant Russian-speaking community, giving the neighborhood a unique small-town feel within Philadelphia. Its main commercial stretch along Bustleton Avenue features an array of Eastern European bakeries, grocers, and family-run eateries serving traditional comfort foods. Additionally, the area offers a suburban atmosphere characterized by quiet residential streets, green yards, and easy community access via Roosevelt Boulevard.
Quick Facts
Population:
25,505
Median Age:
44
Housing Units:
10,898
Bike Score:
50/100
Walk Score:
50/100
Transit Score:
47/100
Median Household Income:
$70,054
Bustleton Housing Market
The more popular homes in Bustleton go to pending in 10 days, but on average, homes in this neighborhood go to pending after 32 days on the market.
Many homes receive multiple offers, and the average home sells for around 1% below list price.
Median Sale Price
$360,000
Median Price Per Sq. Foot
$245
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?
Home prices in Philadelphia are relatively affordable and well below the national average. This has made buying in Philly 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 co-op prices are also on the rise after plateauing in 2023-2024. 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 only 4.5% above the national average have contributed to Philadelphia’s relatively low overall cost of living, which is just 7.2% above the U.S. average. Utilities and groceries are above the national average in Philly but are still low when compared to other large cities such as New York or Washington, D.C.
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